Momentum investing

Momentum investing is a strategy where investors buy assets that have shown an upward price trend, expecting that the trend will continue. The idea is based on the belief that stocks or other investments that are performing well will keep performing well in the short term, while those that are underperforming will continue to decline. Investors use data and trends to identify these upward-moving assets, hoping to capitalize on their momentum for potential profits. This approach relies heavily on market psychology and the tendency of investors to react to price movements.