Momentum + FOMO = Profit Potential
Is it often said that only two things are guaranteed in this life; death and taxes.
Is it often said that only two things are guaranteed in this life; death and taxes.
To that, I’d offer this near-certainty that can be added to this list:
Momentum + FOMO = Profit Potential
That is, in the investment world, a formula that can often be counted upon to yield good results combines the momentum exhibited by a stock’s price movement with investor fears of missing out. This relationship normally translates to a great deal of capital gain, or potential profit.
The Trend is Your Friend
Momentum in the stock market can be exhibited in the overall market’s price movement as well as an individual stock price. Generally, when a trend is visible, you can count on it to continue in the same direction, up or down, until it stops.
If you’ve been tracking a stock’s price movement to determine a good entry point and you detect a discernible change in its trend, you can assume this trend will last until it no longer does. In essence, this…
