If you’re competing in your high school stock market game and aiming to come out on top, you’ve probably heard about different strategies for picking the right stocks. One approach that can give you an edge in the short term is momentum trading. But what exactly is it, and how can it help you win?

Momentum trading is based on the idea of following a stock’s recent trend—whether it’s going up or down. In simple terms, it’s like riding a wave: you buy a stock that’s already going up, with the hope that it’ll continue to rise so you can sell it at a higher price. For high school students looking to win a stock market game, this strategy can be very effective because it focuses on short-term gains.

“Momentum trading allows you to capitalize on a stock’s current trajectory,” says one market analyst. “When a stock is on an upward trend, it often keeps moving in that direction, giving traders the chance to make quick profits.”

Why Heritage Insurance (HRTG) is a Hot Momentum Pick

One stock that’s been making waves lately is Heritage Insurance (HRTG). With a strong momentum score, it’s caught the attention of traders who are looking for short-term gains. Let’s break down why HRTG could be a great pick for your stock market game.

Looking at HRTG’s recent price activity gives you a clear picture of its momentum. Over the past week, shares have jumped 37.73%. Even better, the stock’s monthly price change is up 47.99%, far outpacing the industry average of 2.37%. This shows that HRTG has strong upward momentum, making it a potentially profitable choice for short-term trading.

“HRTG’s recent performance is a textbook example of a stock with strong momentum,” notes a financial expert. “For students participating in a stock market game, picking a stock like this can put you ahead of the competition.”

But momentum isn’t just about price movement. Volume—how many shares are being traded—also plays a crucial role. In the last 20 days, HRTG has averaged 331,308 shares traded daily, which is a bullish sign. A rising stock with high trading volume often signals that the upward trend could continue.

The Role of Earnings Estimates in Momentum

Another factor that supports HRTG’s momentum is the positive trend in earnings estimates. Over the past two months, analysts have revised their earnings estimates for HRTG upwards. The consensus estimate for the full year has increased from $1.45 to $1.78. This upward revision is a strong indicator that the company is performing well, which can fuel further momentum.

“A positive shift in earnings estimates often leads to continued stock price gains,” says a market strategist. “For high school students, understanding these indicators can be key to making smart picks in a stock market game.”

Momentum Trading vs. Long-Term Investing

While momentum trading can be a winning strategy in a short-term competition like your high school stock market game, it’s important to remember that it’s not the same as long-term investing. Momentum trading involves higher risks because you’re trying to profit from quick price changes. This approach is great for games or day trading, but it’s not recommended for building long-term financial wealth.

Long-term investing, on the other hand, is about choosing stocks that you believe will grow steadily over time. This strategy focuses on building wealth and meeting financial goals, like saving for college or retirement. It’s less risky and more about patience and consistency.

Bottom Line

If you want to win your high school stock market game, momentum trading is a strategy worth considering. By focusing on stocks like Heritage Insurance (HRTG) that show strong upward trends, you can make timely and profitable trades. Just remember, while momentum trading can help you come out on top in a competition, it’s different from the long-term investing strategies you’ll need to build real financial wealth.