DIY Momentum QnA and Discussion

The fundamentals of a momentum strategy are:

1. Price Trends: Focus on stocks that have shown strong recent price movements, as they tend to continue performing well.
2. Relative Strength: Select stocks that outperform their peers.
3. Holding Period: Hold positions for short to medium terms, typically a few months.
4. Rebalancing: Regularly update the portfolio to include the strongest momentum stocks.
5. Risk Management: Use stop-loss orders, diversify, and control position sizes to manage risks.