When I kicked off my trading journey, I had one goal: become a full-time day trader—sitting at my desk, running a premarket routine, and executing quick trades.
Sound familiar? Maybe you’re dreaming of that too.
But with my packed schedule, I quickly saw day trading wasn’t in the cards yet. That’s when I stumbled onto momentum trading, inspired by a trader I follow, The Great Mattsby, whose strategy I’ve been learning. It’s been a total shift—fitting my life, slashing stress, and letting me trade and gain some experience from watching the market.
If you’re a beginner eyeing day trading but feeling stuck, this style might be the game-changer you didn’t know existed. So let’s unpack what it is, how it works with market cycles, why it’s perfect for starters, and how it builds wealth over time.
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What Is Momentum Trading?
Momentum trading is buying something with a strong bull trend—when prices are climbing steadily—backed by technical indicators and market structure (like higher highs) showing it’s solid and should keep rising because buyers are in charge, then selling when it slows.
Day trading is fast—you buy and sell in a few hours, which can be good or tough depending on your style. Momentum trading takes longer, like days, weeks or more, mixing quick gains with holding for a bit. It’s similar to swing trading, where you catch part of a price move without watching it every second. With some positions you might hold for months or longer so it does have more of an investing type of feel for some traders.
For beginners, it’s a great fit. You don’t need super-fast moves—just look for clear signs, like a stock pushing past a price it couldn’t break before, then backtesting support.
I use basic tools—market structure (how prices flow), moving averages (trend lines), maybe Fibonacci levels, Ichimoku clouds, or Gann tools—to see the setup. Best part? I can plan some trades when I’ve got time, setting entries and exits ahead, so I’m not glued to my screen.
Why Momentum Trading Wins Over Day Trading (For Beginners)
Day trading seems exciting—traders making money fast and enjoying life. I liked that idea, and maybe you do too. But it’s hard work. You have to watch the market all day, make quick decisions, and it takes up a lot of time.
Some people might enjoy that, and I could see myself trying it someday. But for most beginners like us, with jobs, family, or other responsibilities, it’s not easy. Momentum trading might be a better way to start:
- Works with Your Time: I look at charts at night, set my trades, and let them go. No need to stare at a screen all day.
- Less Stress: Day trading feels wild—momentum is calmer. I focus on bigger price moves, not small changes.
- Simple to Start: You don’t need to be an expert. Spot a trend, check a signal, and trade.
- Teaches You: It helps me learn patience and how to plan trades—skills I’ll use later, no matter what trading I do. I think it’s a good way to begin learning about the market.
Market Cycles 101: Timing Your Momentum Moves
Here’s where it gets cool: momentum trading pairs perfectly with market cycles—the ups and downs every asset goes through. Think of it like four phases:
- Accumulation: Prices chill at the bottom—everyone’s quiet.
- Markup: Prices start climbing—traders pile in, momentum builds.
- Distribution: The peak hits—things slow, smart money cashes out.
- Markdown: Prices drop—cycle resets.
As a beginner, you don’t need to worry about all the cycle details. Instead, you can think about trading this way: check if the market structure looks good, like prices trending up with higher highs. Then, consider buying at support, where the price stays steady and doesn’t drop lower, and selling at resistance, where it hits a top and slows down. It’s a simple idea that can work with your day.
Your Beginner’s Guide to Momentum Trading
Want to start momentum trading? Here’s my simple plan based on what I’ve learned. It’s about making smart, patient trades that add up over time.
- Choose a Market and Check the Trend
Pick busy stuff like tech stocks or Bitcoin stocks. Use TradingView (free) to look at weekly or monthly charts. If prices are going up and holding steady, that’s good. If they’re breaking down, stay away. - Buy Smart
Don’t chase prices. Buy when they hit a support level (where they stop dropping) or after a breakout (when they push past a high) and dip back. Wait for proof it’s safe—like a strong weekly close. - Stick to a Plan
Only buy at support, not in the middle or at resistance (where prices stall). Sell at resistance for profit or hold if you’re okay with ups and downs. Make a plan and follow it. - Add Money Wisely
In an uptrend, buy more when prices dip to support. If it’s a downtrend, don’t add—just sell. Only add when the trend is up with higher highs and lows. - Be Patient, Stay Calm
Don’t overtrade—wait for the right moment. Buy at support even if others panic. If prices drop after you buy, it’s a chance to get more cheap. Missed a move? Wait for the next dip. Sell when it feels right, not out of greed. Trust the chart, not your feelings. - Ride the Wave
In a strong uptrend, buy at support, add on dips, and hold as it climbs. Look for support building over time—it means more gains ahead. Check monthly charts when things get crazy to see the real trend.
Wealth Accumulation and Why It’s Perfect for Beginners—and Beyond
Momentum trading isn’t only about fast profits—it also helps build wealth over time. Day trading is quick and exciting, and some pros are profiting on a daily basis which is amazing. Momentum trading is slower, but it lets you catch bigger price moves without stress. For beginners like me, it’s an easier way to start that doesn’t take over my life and still brings in profits. Here’s how it fits together.
When prices drop—like they have been in March 2025 for example—you would but at support levels, where prices stop falling because buyers show up. These dips, sometimes fast ones that bounce back when big traders buy, are chances to get growth stocks for example at a lower price before they rise again. Many big gains from growth stocks can happen in just a few days. If you day trade too much, you might miss those key moments.
For new traders, this matters. It’s not about making fast moves all day—you’re following a trend that’s already going or buying low to hold longer. It’s simpler to learn than day trading and teaches useful things like spotting trends, buying at support, and handling risk.
When I started my trading journey, I thought day trading was the way to go because it’s the popular term everyone hears. But I quickly learned there are lots of strategies out there. My end goal might still be day trading, but as a beginner just starting with charts, making trades, and learning technical analysis, I’ve found this approach easier to begin with and a good way to get market experience. I want to day trade eventually, but this has been a solid start.
Pros might trade both types of strategies, but this way works for me now: it’s manageable, fits my schedule, and pays off as I learn. You don’t have to day trade right away to begin.
