Travel china guide on This creates increasing incentive, and near the 20-percent mark, we look for reactions to that incentive. We then jump onto that wave for as long as it flows. At the tops, as profit-taking incentive increases, we then have a choice to sell or hold for an even longer-term trend. Understanding the principles of time and movement and momentum will help you to make your decisions. CHAPTER 14 Momentum Investing 233 For example, when the Nasdaq hit its recent bottom after the crash at 3040, I began looking for reactions to the growing incentive in the values created. I then began adding positions as I identified momentum coming into individual stocks and the buyers coming in stronger during the day’s trading, indicating the counter-reaction was beginning. Cisco, (CSCO) is a stable market leader and often a good one to watch for general market indication (see Figure 14-1). Travel china guide 2016.