Chief Institutional Trader , First Global At the core, momentum investing works on a couple of principle, I.e. "buy high, sell higher" or buy when day volume is higher than 3-month volume average, barring big blocks, trading break-outs on charts or trading the markets opening volatility, etc. Here, the trader's own personality also matters. Hence, it is important for the trader to first identify the type of trader he/she is. If a trader is more comfortable with delivery-based trading and not be able to handle price volatility, then he is not a momentum trader and ideally should restrict himself from such trades.