PT - JOURNAL ARTICLE AU - Bruce I. Jacobs TI - Momentum Trading AID - 10.3905/joi.2000.319434 DP - 2000 Nov 30 TA - The Journal of Investing PG - 6--8 VI - 9 IP - 4 4099 - https://pm-research.com/content/9/4/6.short 4100 - https://pm-research.com/content/9/4/6.full AB - Momentum traders buy stock (often on margin) as prices rise and sell as prices fall. In essence, they are trying to obtain the benefits of a call option--upside participation with limited risk on the downside--without any payment of an option premium. The strategy appears to offer a chance of huge gains with little risk and minimal cost, but its real risks and costs become known only when it's too late--after the strategy has failed, and taken markets down with it.