Better System Trader cover image

Better System Trader

172: The Magic of Momentum Trading – Alan Clement

Nov 11, 2020
01:00:14

Podcast summary created with Snipd AI

Quick takeaways

  • Momentum trading focuses on time in the market rather than timing, offering significant advantages like low turnover and high trade expectancy.
  • Momentum trading requires traders to accept losses and manage higher volatility, presenting challenges despite the potential for big winning trades.

Deep dives

Momentum trading foundation and historical context

Momentum trading is discussed as a trading strategy based on price trends that persist in the market due to fear of loss and fear of missing out. The historical context of momentum trading is explored back hundreds of years, showcasing the inefficiencies and human behavior driving trends. The analogy of a skateboard moving until friction stops it is used to explain how trends develop and dissipate.

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