Is Momentum Investing really work?
I dont think so , its always a myth .
for Retail investors with capital less than 20-30 lakhs its best to wait for market to hit low like 2008 crisis or corona crisis and then take advantage of the market .
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How do you know what is the bottom
@Weallrsame moment investing works only if you can invest in big-ticket sizes, like 5-15L investable corpus.
And do keep realistic expectations of beating the market by only a percent or so that too if possible.
I’d compare historical data and if you’re investing in a ticket size less than that you’d be better off with index funds.
Nobody can pick or time the market top or bottom. But when market falls 20% from ATH, officially a bear market is flagged. So that is the time to to go fishing for good quality stocks. Also note that after the onset of the bear market it can fall further to about 40 - 60% from the ATH based on historical stats.
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Research paper “Returns to Buying Winners and Selling Losers: Implications for Stock Market Efficiency” suggest that stocks that perform the best (worst) over a three-to-12-month period tend to continue to perform well (poorly) over the subsequent three to 12 months.
Your question is bit open ended. What exactly you want to know?
Whichever momentum investment strategy you are thinking, you can always backtest and test the results