📊 What Is Momentum Trading? 📊
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Momentum trading is the practice of buying and selling assets according to the recent strength of price trends. It is based on the idea that if there is enough force behind a price move, it will continue to move in the same direction.

When an asset reaches a higher price, it usually attracts more attention from traders and investors, which pushes the market price even higher. This continues until a large number of sellers enter the market – for example, when an unforeseen event causes them to rethink the asset’s price. Once enough sellers are in the market, the momentum changes direction and will force an asset’s price lower.
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📉 @Market_Share 📈

📊 Advantages Of Momentum Trading 📊
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Momentum trading can result in significant profits for the investor with the right personality, someone who can deal with the associated risks while committing to the momentum trading strategy. Advantages can include:

🔵 High-Profit Potential in a Short Period of Time: If a stock you purchase grows from $25 to $37.50 due to an overly positive analyst report, you can sell that stock at a profit of 50% before the price corrects itself.

🔵 Taking Advantage of the Market’s Volatility: Momentum trading is all about capitalizing on the volatility of market trends, looking for stocks that are on their way up to buy and selling them before the prices start decreasing.

🔵 Taking Advantage of Other Investor’s Emotional Decisions: As opposed to being controlled by an emotional response like many traders, capitalize on the changing prices resulting from emotional traders.
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📉 @Market_Share 📈

📊 Disadvantages Of Momentum Trading 📊
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🔵 High Turnover: Fees associated with higher stock turnover can be expensive. While low-cost brokers are starting to put an end to the high fees problem, it continues to be a significant concern for momentum traders just starting.

🔵 Time-Intensive: Momentum trading requires traders to monitor the details of the market daily, sometimes even hourly. Since the stocks they are dealing with will crest and decrease momentum again, investors need to be able to get in and out early. This requires them to watch all updates, seeing if any negative news updates may spook other investors.

🔵 Market Sensitivity: Momentum trading is best in a bull market as traders are likely to herd more than in a bear market where the profit margin on momentum trading decreases along with increased caution among investors.
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📉 @Market_Share 📈

📊 Understanding The Role Of A Stockbroker 📊
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Stockbrokers research how companies are doing financially so that they can advise clients as to whether or not they should invest in a particular company. Stockbrokers work for individuals or companies and with other financial dealers. They need to be able to handle stressful situations and have strong communication skills.

➡️ Duties & Tasks Of A Stockbroker
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🔴Buys, trades and sells orders based on research.

🔴Daily studies and interprets data from a variety of resources to determine how a company is doing financially.

🔴Maintains strong communication with clients regarding transactions and potential investment opportunities.

🔴Manages peoples shares and makes financial decisions on their behalf.

🔴Meets with clients to find out specifically their investment interest.

🔴Promotes services to attract new customers.
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📉 @Stockl 📈

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