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| Momentum markets are very seductive. They also destroy the hopes of many novice traders. While swing trading demands precision and careful planning, momentum trading requires complete emotional control. Greed and fear exert tremendous force in fast markets and cloud effective risk management. Not sure you believe this statement? Raise your hand if this has ever happened with your trading: you exit a momentum position with a big gain, but then give it all away on your next few trades trying to do the same thing that made all that money in the first place. Hmm, we thought so. Momentum can also be an illusion. As SATH traders discovered, there are many ways to lose money going long in hot markets.
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