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Learn/Movers and momentum
intermediate5 min read· Movers and momentum

Momentum trading basics

Momentum strategies buy strength and short weakness. Yesterday's big gainer often continues the next morning, especially when there is volume and a clear catalyst.

Momentum trading means buying stocks that are going up and selling stocks that are going down, on the theory that trends persist in the short term.

Yesterday's big gainers often attract more buying the next morning, especially pre-market and at the open. Traders who missed the initial move try to buy in, creating continuation momentum.

However, momentum strategies have a high failure rate for beginners because the move often happens pre-market, and retail traders enter at the top just as institutional traders are selling.

The key to momentum trading is context: a stock that moved on strong volume with a clear catalyst has better continuation odds than one that moved on no news.

TuraTrade tracks continuation rates (what percentage of movers kept going the next day) and reversal rates so you can see historically how different types of movers performed.

Practice what you learned

Build a simulated portfolio from yesterday's movers and see how these concepts play out with real market data.