TY - JOUR T1 - Momentum Trading JF - The Journal of Investing SP - 6 LP - 8 DO - 10.3905/joi.2000.319434 VL - 9 IS - 4 AU - Bruce I. Jacobs Y1 - 2000/11/30 UR - https://pm-research.com/content/9/4/6.abstract N2 - Momentum traders buy stock (often on margin) as prices rise and sell as prices fall. In essence, they are trying to obtain the benefits of a call option--upside participation with limited risk on the downside--without any payment of an option premium. The strategy appears to offer a chance of huge gains with little risk and minimal cost, but its real risks and costs become known only when it's too late--after the strategy has failed, and taken markets down with it. ER -