Neophytes quickly fall under the spell of fast moving markets.
However, trading momentum is far more difficult than most participants admit. When the emotional crowd ignites sharp price movement, greed clouds risk awareness. The inexperienced trader reacts foolishly and chases positions just behind the big volume, where odds of a reversal quickly increase. Prices rarely move in a straight line. As shocks destabilize a market, counter force emerges to restrain price back toward its stable state.