Momentum investing, a widely adopted investment approach, seeks to generate profits by capitalising on upward trends while steering clear of assets on a downward trajectory.
This investing strategy involves prioritising the purchase of assets experiencing upward momentum and selling them when indications suggest a weakening trend. The fundamental concept is rooted in the belief that trends exhibit persistence, implying that if a stock or asset is on an upward trajectory, it is more likely to continue rising than to abruptly reverse direction.
