Momentum Work File

Financial markets exhibit "momentum" where assets that have performed well in the past (e.g., 3–12 months) tend to continue performing well in the short term.

In financial markets, momentum is a famous anomaly. Stocks that have performed well over the past 3 to 12 months tend to continue performing well. This defies the "efficient market hypothesis."

Everyone loses their rhythm eventually. The key to recovery is not to panic or wait for "inspiration" to return. Inspiration is a luxury; momentum is a discipline. When you find yourself at a standstill, lower the bar. Don't try to get back to where you were at your peak immediately. Simply move the object—any object—even a fraction of an inch.