Wealth Monitor April 2016 | Page 42

TAKING STOCK | Momentum Investing Befriending the Trend Trend-following investing may not necessarily work for every investor at all times, as there’s always the risk of timing a buy or sell incorrectly. By Fareem Chagla and Joachim Klement “An object in a state of uniform motion tends to remain in that state of motion unless an external force is applied to it” M omentum Investing is best explained by Newton’s First Law of Motion. With 40 a clear lean towards technical analysis in the perennial tiff between fundamental and technical analysis, momentum investing echoes the mantra of ‘Buy High, Sell Higher’. It reflects a www.wealth-monitor.com | April 2016