What is Momentum Trading?

Charts alone do not move stocks. If they did, we could all simply program our computers to trade for us, while we played golf. Fundamentals alone do not drive stocks, or we would never have any of these outrageous valuations. The central truth is that, behind every stock’s movement are people - people with emotions, and worries, and hopes, and dreams, just like you and me. And that is why the market's movements are not always logical, explainable or foreseeable.

But that doesn't mean they are not playable! And that is what "trading the traders" is all about. It is the art of anticipating and identifying movement created by the masses. It is a choice to play those moves, as they occur, for what they are - simply momentum.


What methods are used at MTrader?

Our methods are based on common sense and the forces of momentum, using a combination of technical analysis, fundamental analysis and crowd psychology, to anticipate and time direction changes for maximum potential.

Among the variables we consider are price movement, news events, current volume, relative-strength theory, key indicator stocks, recent market patterns, pivot points, moving averages, stochastics, on balance volume, and tape-reading. Our plays are held anywhere from several minutes to several days, and naturally risk management is a top priority.

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