This is a strategy where investors buy assets that are increasing in value or sell those whose value is decreasing, with the aim of making a profit.
For instance, investors buying assets that are rising in price will hope that prices continue to increase. When those assets peak, they’ll be sold at a profit. Investors may also decide to sell assets that are declining in value and keep any profit made from the sale. The main assumption momentum investors make is that once a trend is well-established, they expect it to continue.