A to Z of Momentum Trading and Investing by Alok Jain
In this instalment of the Face2Face series, we have with us Mr. Vivek Bajaj, co-founder, StockEdge, Elearnmarkets, who will engage in an informational conversation with Mr. Alok Jain, who has been a participant of the stock market for the last 25 years. We will discuss some simplistic trading strategies and investing decisions that can help us manage our portfolio successfully.
Mr. Jain will start his discussion by discussing the events that have led him to create his philosophy of trading and investing, and some advice for the novice investors and traders as to how to be successful by understanding the momentum of the market. We will further discuss the complexities which arise while we are setting up our trading or investing rules and environment.
We will next discuss the importance of simplicity and discipline, both in investing and trading. Mr. Jain will then show a detailed breakdown of how he set about to become simpler, and disciplined in his approach towards the stock market. We will discuss some tips from Mr. Jain’s own plan of action to see how we can become more disciplined towards the markets, with some basic examples and scenarios.
Next, we will discuss the pros and cons, and the differences between a price-action-based strategy and a fundamental-based strategy. Following this, we discuss the basics of Mr. Jain’s style, which is the momentum style of investing.
There are two main styles of investing via momentum – absolute and relative momentum strategy. We will discuss how we can use each of these two strategies to make the best investing decisions, with some practical examples. We will apply these strategies towards actual figures and see how the average wins and loss percentages can improve and differ with these strategies.
Next, Mr. Jain will discuss the importance of working in the stock market with an exact and a practical perspective rather than a vague perspective that makes investors and traders avoid exiting the market. Following this we will discuss the importance of knowing when to exit the stock market. Next, we will discuss, what should be a simple strategy for exiting the market, that can help us figure out our exits with ease, and with no stress.
Lastly, with the use of some real-life charts, we will explore how some of our investing decisions, taken with the strategies and rules discussed in this video, will help us managing our portfolio with ease and simplicity.