Focus on Profits with Momentum Stocks by Mark Crisp

There are a multitude of approaches in use for stock market trading, all of which attempt to extract maximum value from the stock market. A momentum trading strategy is one approach.

Allowing a winning stock to continue to ride is an alternate approach to taking profits after a defined percentage is gained. This strategy can maximize profits by extracting the most out of a stock rather than settling for smaller gains and the risk of entering another trade to capture the profit that may have been had if the stock were held longer. This strategy has proven to be successful for many traders and is a key part of the momentum trading system. The big profits are in the big moves.

In the past, trading momentum stocks has shown to be effective in producing stock market profits. Firstly a high performance market is chosen. Next groups of stocks which fit predefined criteria in terms of momentum, based on price and volume changes, are identified. Finally, a stock is identified with greater momentum than others in the group. Thus the odds for success are tipped in your favour. A stock with high momentum has the potential to continue the trend into higher levels of profit.

Some trading methods will tell you that the key to stock market profits is in diversification. Other strategies favour more frequent trading such as daytrading. Momentum stock trading frees you from the necessity of trading constantly and utilizes the concept that "concentration builds wealth". You ride the momentum of the stock market and focusing in on strong momentum stocks is likely to capitalize on the highest possible gains.

Using a momentum trading strategy and focusing on momentum stocks is becoming more popular among savvy investors. Momentum stocks have shown to be successful in generating profits in the stock market. One secret of the stock market is to trade big. A momentum trading system will allow you to trade big and to concentrate your trading on a few well selected stocks to maximize your stock market profits and build wealth.

About the Author

Mark Crisp is an experienced stock trading and the creator of the Momentum Stock Trading System which focuses on big moves for big profits. Pick up your complimentary copy of The Seven Habits of a Successful Trader from http://www.crispstocks.com