Momentum Investing for Beginners: Trend-Following Strategies

Financial markets often move in persistent trends, but capitalizing on these movements requires a structured, disciplined strategy rather than guesswork. Momentum investing allows you to identify strong market trends and ride them systematically while protecting your capital. This text-based course guides you through the foundational principles of momentum-based trading and investing. You will transition from chasing random market moves to understanding the quantitative mechanics of trends, asset selection, and risk management. What you will learn: Understand the psychological and market anomalies that drive momentum behaviors; Identify strong upward and downward trends using core technical indicators and relative strength; Construct systematic momentum portfolios using absolute and dual momentum methodologies; Apply modern risk management rules, including stop-losses and position sizing, to protect your capital; Evaluate the impact of transaction costs, slippage, and market regimes on strategy performance. The course starts with essential financial terminology and historical theories of market trends before guiding you through structured strategy design and practical risk-control frameworks. This course is designed for beginning investors, market enthusiasts, and aspiring traders who want a logical, rules-based approach to the markets with no prior trading experience required. Start reading today to build a disciplined, trend-following foundation for your investment journey.