Which of the following is a characteristic of momentum trading?
A) Investors buy stocks as prices fall.
B) Investors sell stocks when others sell.
C) Investors buy stocks as prices rise.
D) Investors buy and sell stocks spontaneously.

Question

Quizplus · Accepted Answer

Momentum trading involves buying stocks whose prices are rising and selling those whose prices are falling. It is based on the idea that assets that have performed well in the past will continue to perform well in the short term.

Which of the Following Is a Characteristic of Momentum Trading