Search results
Results from the WOW.Com Content Network
While momentum investing is well-established as a phenomenon no consensus exists about the explanation for this strategy, and economists have trouble reconciling momentum with the efficient market hypothesis and random walk hypothesis. Two main hypotheses have been submitted to explain the momentum effect in terms of an efficient market.
Momentum trading is a way to profit from short- or intermediate-term moves in the market. To be successful at it, you'll need a lot of skill, time and potentially money, and you'll need a hefty...
Momentum Trading: Momentum traders simply buy stocks that are already moving up or sell stocks that are on the way down. The general principle is that a stock in motion tends to stay in motion ...
Pairs Trading: Pairs trade is a trading strategy that consists of identifying similar pairs of stocks and taking a linear combination of their price so that the result is a stationary time-series. We can then compute Altman_Z-score for the stationary signal and trade on the spread assuming mean reversion: short the top asset and long the bottom ...
"Momentum" in general refers to prices continuing to trend. The momentum and ROC indicators show trend by remaining positive while an uptrend is sustained, or negative while a downtrend is sustained. A crossing up through zero may be used as a signal to buy, or a crossing down through zero as a signal to sell.
For premium support please call: 800-290-4726 more ways to reach us
Conversely, traders may "let the profits run" when the market trend goes as expected until exhausted, at which point profits are taken. Some traders may set a specific stop limit or sell once a certain return has been met, or sell at a point once unrealized profits begin diminishing as a stock falls back down.
Gold futures rose as much as 0.8% to hover near highs of $2,770 per ounce while spot gold inched to a record just north of $2,759. Silver futures ( SI=F ) gained more than 1% to top $34 per ounce ...