There are two types of Halloween people: those who like jump scares and those who don’t. But even if you’re a fan of haunted hayrides and movies like The Conjuring, you probably don’t want to ever get a jump scare from your portfolio, which is why so many investors use diversified index funds with the bulk of their wealth.
When momentum fades in a stock, the bottom can drop out quicker than the Tower of Terror. However, if you’re an active trader, you must spot signs of an ominous momentum shift before it becomes a trend. And just like a scary movie, stocks often provide hints that something nefarious is lurking.
