Momentum Investing
Momentum Investing—a brief introduction
In this column, we define and outline a distinct strategy for buying stocks—momentum investing. Also known as trend following, this style has been used effectively by master traders for over a century. We look at the “grandfather” of momentum investing, Jesse Livermore, who was kicked out of New England bucket shops (think of a firm that allows gambling on stock prices as opposed to horse races or ball games) in the late 1800s for winning too much of the house’s money.
A dirt-poor runaway, Livermore was worth $100 million following the 1929 crash. Unfortunately, when he abandoned his own strategy he lost everything and committed suicide in 1940—following in the footsteps of his wife’s five former husbands.
We discuss a specific metric to look at when evaluating stocks, in addition to identifying what sectors are best suited to invest in right now, using this method. Don’t miss it.
Read the entire story in Vol. 4, Issue 2.
(OK, got it. Take me back to the Penn Wealth Hub!)
In this column, we define and outline a distinct strategy for buying stocks—momentum investing. Also known as trend following, this style has been used effectively by master traders for over a century. We look at the “grandfather” of momentum investing, Jesse Livermore, who was kicked out of New England bucket shops (think of a firm that allows gambling on stock prices as opposed to horse races or ball games) in the late 1800s for winning too much of the house’s money.
A dirt-poor runaway, Livermore was worth $100 million following the 1929 crash. Unfortunately, when he abandoned his own strategy he lost everything and committed suicide in 1940—following in the footsteps of his wife’s five former husbands.
We discuss a specific metric to look at when evaluating stocks, in addition to identifying what sectors are best suited to invest in right now, using this method. Don’t miss it.
Read the entire story in Vol. 4, Issue 2.
(OK, got it. Take me back to the Penn Wealth Hub!)