Stay informed with our free disruptive technology investing newsletter, Nanalyze Weekly. Sign up now at https://www.nanalyze.com/nanalyze-weekly/. This episode is pulled from a YouTube presentation. View the original presentation at https://youtu.be/vU9tJDD2qGM.


Momentum stocks aren't just stocks that always increase in value. The industry-wide method for identifying momentum stocks involves looking at sustained price performance gains over 12 months of less at various intervals with the most recent month's performance excluded. We look at how MSCI defines their momentum factor index which powers the iShares Momentum ETF MTUM which allows anyone to get exposure to momentum for just 15 basis points. There's a misconception among retail investors that momentum stocks are something you can "trade" which is a bad idea. Invest in companies, not stocks. The world is littered with failed wannabe "traders" who eventually realize that capturing alpha through market timing is something only algorithms can do consistently over time. If you're looking for a great tutorial on understanding momentum stocks, you just found it.

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