> Baum didn't seem to subscribe to the most common paraphrase of momentum trading, which is to "cut your losses short and let your winners run on" I don't have

> Baum didn't seem to subscribe to the most common paraphrase of momentum trading, which is to "cut your losses short and let your winners run on" I don't have a source for it that I can find at the moment, but I recently read a paper showing that this advice is actually quite bad and traders perform better when they do the opposite. (They sell losers too early (when they would have recovered) and they sell winners too late (after they've declined)) Of course, prospectively knowing you're selling losers to early or winners to late is hard to do.