Which of the following strategies is commonly used in sales and trading?

Momentum trading is a widely recognized strategy in sales and trading because it capitalizes on the persistence of existing market trends. This approach involves buying securities that are experiencing upward price movement and selling those that are declining, based on the idea that prices tend to continue in the same direction for some time. Traders using this strategy often rely on technical analysis and price patterns to identify opportunities, allowing them to take advantage of short-term price fluctuations and ride the momentum until they perceive that it has peaked or reversed.

By focusing on stocks or assets that are performing particularly well in the market, traders aim to maximize returns in a relatively short time frame. This strategy aligns with the fast-paced environment of sales and trading, where quick decisions and the ability to react to market signals are crucial.

While time-based investing, passive indexing, and risk avoidance are also valid approaches in investing and portfolio management, they do not typically align with the high-frequency, opportunistic nature of trading strategies found in sales and trading environments. Time-based investing suggests a longer-term approach, passive indexing focuses on market averages and minimizing trading activity, and risk avoidance emphasizes minimizing exposure to potential losses rather than seeking to profit from market movements.