Whilst there are a number of different strategies which can be employed in stock market trading, from ultra short term daytrading to long term buy and hold strategies, there is a lot to be said for using momentum trading to ride a stock for maximum profits.

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.

Historically, 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 dictate 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.

Many smart investors are now seeing the wisdom of using a momentum trading strategy and focusing on momentum stocks. These stocks have been proven to be useful in deriving profits from the stock market. Trading big and concentrating on a few strong momentum stocks is the key to the stock market. Using a momentum trading strategy allows you to do that.

Mark Crisp is an experienced stock trading and the creator of the Momentum Stock Trading System which focuses on big moves for big profits.


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