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How to win the high-momentum stock game

The article from MSN Money discusses strategies for investing in high-momentum stocks, which are stocks that have shown significant price increases over a short period. It outlines that momentum investing involves buying stocks that have had high returns over the past three to twelve months and selling those with poor returns. The piece highlights the importance of understanding that while momentum stocks can offer substantial gains, they also come with increased volatility and risk. Key tips include using technical analysis to identify trends, setting stop-loss orders to manage risk, diversifying investments to mitigate potential losses, and being aware of market sentiment and news that can drive momentum. The article also cautions investors to be prepared for sudden reversals in stock prices and to consider the psychological aspects of investing in such volatile assets, emphasizing the need for discipline and a clear exit strategy.

Read the Full MarketWatch Article at:
[ https://www.msn.com/en-us/money/savingandinvesting/how-to-win-the-high-momentum-stock-game/ar-AA1Bb1PF ]