Momentum Trading Strategy

Notes

Risk Management & Position Sizing

Notes whose main point is limiting losses and deciding how much to buy and how much to risk on each trade.

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You’ll notice a lot of strong performers inside the IDNA Genomics & Immunology ETF, but I want to be clear about how I approach this area.

Biotech is not my wheelhouse, and I tend to stay selective here. Many biotech names lack consistent earnings and sales, which means they are often traded purely off price action and news catalysts tied to drug data or approvals. That’s a very different game than traditional growth-stock investing.

This is an area where traders like Minervini have expanded over time, and it’s a good example of how many start with a William O’Neil foundation and later branch out once they’ve earned that flexibility through experience.

In my view, biotech should be:

  • Small position size

  • Limited exposure within the portfolio

  • Treated as a tactical trade, not a core holding

This is not where I’d recommend starting. It’s an area you graduate into after proving consistency in safer, earnings-driven growth stocks where risk is easier to define.

Price action always comes first, but process and position sizing matter even more in categories like this.