Momentum investing is a strategy where investors buy stocks that have been rising in price and sell those that have been falling. The idea is that stocks that perform well in the short term will continue to do so, while those that are underperforming will keep declining. This approach relies on the belief that trends in the market can persist for some time. To implement momentum investing, traders often look at indicators like moving averages or relative strength. They may focus on sectors or stocks that are currently popular, such as technology or renewable energy. By riding the wave of these trends, investors aim to maximize their returns.