THE BEST STRATEGY TO MAXIMIZE YOUR RETURNS IN BULL MARKET
Do you enjoy trading through the ups and downs in the stock market ?
Are you constantly on the lookout for stocks that are about to see a spurt in price ?
Do you want to be a part of sector specific rallies in fundamentally sound scrips ?
If you are among those itching to make short-term gains and effect a quick exit, you are a momentum investor.
What is momentum investing?
Momentum investing involves buying and selling stocks that are likely to witness a substantial jump in prices in a short span of time. In other words, the investor buys stocks that are about to soar and sells them at a much higher price. As a momentum investor, one seeks to identify stocks that have the potential to yield spectacular returns within a short to medium holding period, say, 1-3 months.
When the market rallies, momentum stocks are usually better placed to lead the market and touch new highs. Typically, the strategy involves capitalising on an existing trend. So, one would try to lock in gains by riding hot stocks, those that are already witnessing a surge in prices, or momentum. Momentum investing is essentially about betting on stocks that have already gathered momentum.
This involves monitoring stock prices daily and cashing out within weeks or months of acquiring the asset. Momentum investing can be rewarding if you can master the use of the indicators available. The strategy can work both ways—you can ride the bull markets as well as benefit from market declines.
DO YOU KNOW WHAT'S COMMON IN NBCC, TWL, IL&FSENGG AND NATCOPHARM?
THESE STOCKS HAVE GENERATED STRONG RETURNS (>40%) FOR INVESTORS IN LAST COUPLE OF MONTHS.
ALL FOUR STOCKS HAVE BEEN PART OF OUR PLATINUM WEALTH MANAGEMENT PORTFOLIO.