Glossary Term

Momentum Trading

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In plain terms, momentum trading is a trading technique where traders buy and/or sell based on a recent trend/pattern. Think of it as ‘riding the wave’. If for example, a financial instrument’s price has been rising for a few days, a trader employing momentum trading will make trading decisions intended to maximize the returns they can extract from this prevailing trend.

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What is momentum trading? A Traders Expert explanation

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