Learn to Trade Momentum Stocks (2024)

This short book is straight to the point. It explains the basic steps of the classic trend following strategy. You will read how to identify suitable stocks, define buy/sell signals, position sizing, and get a short briefing on risk management. The strategy is exemplified by some charts of some very well known cases. The book lacks backing up of the author's personal track record of application of this strategy, other than anecdotical assurance of it being very good and exciting. Indeed, the track records in such books are always very rare, therefore the only way to verify the strategy proposed is to (back)test it by yourself, which is the point of the whole thing. Ideally, on a training account or on as small sizes as the financial stress would alow.

A good book for beginners where Matthew have provided simple and effective swing trading strategy.

Key Takeaway's:

Buy Criteria:

1. Upward Price Trend
2. New Technology or Formula Co
3 20% revenue growth (for last 3 years)
4. Golden Crossover (50DMA moves above 200 DMA) and CMP greater than 50DMA

Sell Criteria

1. 50DMA less than 200DMA
2. Stop Loss at 15%
3. Slow earnings or revenue growth

A Short and Crisp book, which i enjoyed reading.

A great example of a short book that can provide excellent content, for a reasonable price (that reflects the shortness of the book). This is the second book I’ve read on momentum-trading,otherwise known as trend following. The other one, “Trend Following” by Mike Coval, was at least several hundred pages long, that translated to over 14 hours of content in the audiobook, much of which were filler-material from the author’s podcast. This book will not take more than 2 hours to digest, and provides much better value in terms of understanding the mechanics of trend following.

Coval spends many hours talking about trend following, without every really defining it well to to the reader, which can be very frustrating to someone who is new to the topic. Kratter comes out within the first few minutes and succinctly spells it out: Searching for (and investing in) stocks where the 50-day moving average has exceeded the 200-day moving average, and where the equity price is above that signal level on the trading day. That simple, he even provides the reader with 2-broad conceptual buckets to organize candidate equities to invest in, “Formula” companies and growth/tech companies.

Next the Kratter explains some very basic rules to entering/exiting, including when you should take profit. None of this is science, and if you wanted to try your hand algorithmic ally implementing some of this, you’re free to try, albeit at your own considerable risk. The book does a good job however, explaining the kind of “common sense” ideas one may use when looking at securities move in the intraday, as well as how to maintain discipline (congruence with a system/strategy), to ensure consistent results.

Overall, this is really what a new retail investor who wants to try their hand at trend-following needs to read. This provides a clear first-step, and enough concept to go deeper into with other books if/when needed. If you want to spend another 14 hours listening to fluff about the history of trend following and the “philosophy” of trend following, go ahead and get Coval after you’ve read this one. Otherwise, start here, and as the author suggest, try it first with a paper account. Recommended.

As a complete newbie to the idea of investing I thought the ideas shared in this book were well worth reading. Mr. Kratter gives good examples of how investing can be beneficial as well as detrimental. With information on how to choose what is a safe investment margin and tips for setting a stop margin for selling. Several websites are shared so an investor can do further research into the stock(s) they are interested in.

Best one for knowing how to trade with comfort

This is the one I’ve been waiting for.. Matt has a gift for keeping it simple. With his information I feel comfortable settling up to buy low and sell high. Great info on setting stop loss and when to sell.
Worth more than it’s cover price.

This is the second short book I’ve read by this author. At about 65 pages, there’s no filler or repetitiveness, which I like! Kratter knows what he’s talking about and I recommend this book if you want to (cautiously) make money trading stocks. He tells you what to look for to buy and sell. I’m sure there are more in-depth books, but this information is good for the beginner.

Another solid book on stock strategies

Gems, gems and more gems is what I got from this book. I read the first book for beginners in the investment of trading. Now I feel much more competent after being armed with Mathew's strategies. I truly appreciate his education in this area of investing. Great job, now on to employ the methods.

Great for Beginners

This book is perfect for beginners looking to find a simple strategy for trading stocks. I have read several books from this author and I highly recommend his trading books to anyone starting out. They are easy to read and direct to the point. He also has a great YouTube channel that compliments his books.

Straightforward. Beginner's Starting Point.

This was a simple to follow book on momentum trading. An easy way to decide if the subject interests you. If so, you can find other resources to get more detailed information. But definitely a simplified ,easy to follow overview. I would recommend.

Quick but informative

I enjoyed this quick book that I felt gave me some helpful information. As a beginner in the stock market I feel this gave me another tool to help me grow my money.

Very concise with his information and i can't wait to try the strategies brought to the table in this short book.

Thorough and helpful, so even a market beginner can stand a chance in such a volatile and chaotic system of today.

Grade: A

Short. Sweet. Good examples and additional resources that I can used as a new investor. Only took a few days to read and that was bc I read a few chapters twice and didn’t reading it in one sitting bc lots of this info was new to me. I’m glad I read it. Thanks

Very clear

Good book. It explained the concepts very clearly. It was a quick read, but I'm glad the author didn't just fill up pages with fluff to make the book longer. I'm looking forward to reading his other books.

Not A Tutorial.

I was expecting a tutorial on how to get started with Investments to compare to how I invest and got a history about the investment. Can learn that when you go to buy. Not sure I grasp the porpoise of this book.

Easy to understand and follow the instructions!

I am a small time investor looking to get into the trading of stocks. This book gives a good understanding of the strategy without complicating it with tons of data and charts and all. Good read, will know how well it works!

Useful information

Quick read with some useful information. Definitely recommend paper trading the strategy before using real money. I've read several of this author's books now.

Quick read

This is a quick read, well written with useful information for traders who are starting out. The info is well illustrated with the use of charts and the message has been delayed clearly and concisely.

Trend Following Made Simple

Reading this book has increased my confidence in trading, as I read I've been trying to apply it to my trading. So far, I've been on the profitable side. I hope you'll be as successful as I was with this book.

A must read if you day or swing trades..

I have asked myself to define when to buy and when to sell because buy low and sell high saying is too vague. This book will open that definition with much more clarity.

Nice Strategy

Easy to understand snd workable strategy. Setup the screeners for momentum stocks and then work with them to make money. I have put myself in play sith this stragey and see how it goes.

Easy to understand with no fluff

I enjoy every book I've read by Matthew Kratter so far. As always, this book is incredibly easy to understand and follow along. I also appreciate how this book is straight to the point and can be read through in 2 hrs or less.

Good tips

I really like the way that Matt explains the concepts in a simple way. Maybe it is not useful for people with experience but for beginners and medium users it is a good book with really nice tips

Simple and easy to follow.

This book was simple my easy to follow. I wish there were a shorter trading time frame for the beginner.I guess it's able to be modified for those who need a shorter time frame if you change the moving average..

Simple strategies with strong rationale

This book explains momentum strategy in a very easy to implement approach justified in examples over time. Written in a clear manner and step by step details of how to recreate on your own

Good read but basic stuff

New to trading, great read and put together really well. However most people who have been in the market will have already known what a golden cross or death cross is and various ways to play it. Either way it's still a good read hence the headline.

Accurate, digestible

Accurate information that is clearly written. A quick read that will help investors make money. Momentum on the upside has worked for me. Surprised there was no mention of volume, too.

Good info you can learn well in about 30min or less!

I enjoyed this book and I'm gonna incorporate this strategy asap. I am into cryptocurrency and not stocks but I'm assuming, with a few tweeks here and there, that the strategy would work for Bitcoin & altcoins too.

Clear, concise and informative book.

Love the author’s writing style and ability to put things in easy to understand terms and examples. I’ve read a few of his other titles and recommend you check them out.

A great short read on a simple but powerful swing or even long term trading style. As a day trader I picked up a few things for the short term but also learned some things for my retirement accounts.

Always thought stock trading would be hard.

I was amazed at how easy it can be to profit in the stock market world. I am very grateful for the trading strategy that you opened my eyes to. I hope to start using it soon. Thank you!