Momentum investing is a type of investing strategy that intends to take advantage of the current continuing trends in the market. For a trader to take part in momentum investing, they must take a long position in an asset that has displayed an upward trend in price. If an asset is in a downward trend, traders must short-sell that asset.

The idea behind it is basically once a trend has started, it will most likely continue in that direction instead of going against the trend. To further understand, here are the Drawbacks and Benefits of Momentum Investing.