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Use Momentum

by Richard
(Oxford, England)

I have found that trends tend to be self reinforcing. So that when something is going up, more people notice it and buy and the price is strengthened a little.

I know that some people call this kind of thing relative strength - is a stock moving more quickly than its market or sector? I'm not quite so picky, but I work on the basis that positive action will often create more positive action. I want to take part in that and make some gains!

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