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Momentum Stocks

Momentum Stocks

Trend-based investing - stocks on an uptrend spotted by StockAxis using its well-established proprietary algorithmic tool with continuous monitoring to establish the exit point when the trend reverses.

OBJECTIVE
Momentum investing seeks to take advantage of market volatility by taking short-term positions in stocks that are going up and selling them as soon as they show signs of going down.

STOCK SELECTION APPROACH
StockAxis’ ‘Momentum’ team of technical research analysts have years of experience in following technical trends and spotting momentum opportunities from their analysis.

STOCK SELECTION PROCESS
StockAxis has conceptualized a complex proprietary algorithmic stock selection tool, which filters stocks on a positive uptrend thereby giving an entry point. This is then validated by StockAxis’ technical research team before recommendation to our investors.

KEY STOCK SELECTION CHARACTERISTICS
  • Selection based on StockAxis’ proprietary algorithmic stock selection tool
  • Stocks on an uptrend
  • Uptrend to play out over the short term

MONITORING
StockAxis’ proprietary algorithmic stock selection tool is used for monitoring stocks that have been spotted and entry point established. Real-time monitoring using this tool is used to establish the exit point to book profits when the stock’s uptrend reverses.

The basic idea is that once a trend is established, it is more likely to continue in that direction than to move against the trend. It is an investment strategy that aims to capitalize on the continuance of existing trends in the market.

MOMENTUM STOCKS - KEY TRAITS
Number of Recommendations over the year
:
15-20 stocks
Holding period
:
Till uptrend is maintained
Potential upside
:
Based on level of uptrend; trailing price stop-loss provided
StockAxis’ support services
:
  • Direct touch with Technical Research Analysts
  • Recommendations via sms, email & app notifications at real time
  • Dedicated relationship manager
  • Full support on your momentum portfolio

Momentum investing is for those equity investors who prefer to book profits at regular intervals and move on to the next hot stock, a highly risky but potentially rewarding equity investment technique. With sufficient knowledge of the risks and a willingness to take an occasional loss, momentum investing offers an appealing choice for the aspiring investor who enjoys living on the edge

Drawbacks of Momentum Investing
Profits can never be booked at the highest price achieved by that stock as it is a strategy where profit booking happens as soon as the price shows the sign of going down.

Advantages of Momentum Investing
The main advantage of momentum investing is the potential for high profits over a short period of time. One of the most enduring sayings on Dalal Street is "Let your winners Run" but many investors still appear to sell the stocks after a small gain only to watch them head higher. There are lucrative profits can be made from momentum investing.

 
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