Swing Trading - Momentum Stocks
Buying momentum stocks is a type of swing trading, which though very popular among a particular type of investors can often be risky if one is not sure of how to go about it. Buying of momentum stocks may be difficult to gauge and the returns not thoroughly defined but simply put, it is based on the trend of swing trading, where one buys stocks of those companies which have been following the trend of gaining ground in the stock market for at least three months or more. The only rule to be applicable in this type of swing trading is to buy at a relatively high rate and sell it at an appropriate time when rates are even higher.
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