Momentum is a Hell of a Drug

It seems everyone has discovered ‘momentum’ investing and trading.

As a one man shop for my own money, I am a trend follower and believe in momentum.

As Newton said (not the fig) an object in motion stays in motion.

A great quant follow on Stocktwits is Quantocracy. Yesterday they shared a link to ‘The Definitive Guide To Momentum Investing and Trading.

Momentum is based on the empirical observation that there is persistence in an asset’s performance. An asset that has performed well in the past tends to perform well in the future, and an asset that has performed poorly in the past tends to perform poorly in the future. It’s a simple but powerful idea confirmed by hundreds of studies.

It is a fantastic piece to immerse yourself the subject.


Also published on Medium.