Mooer's Stories | Be friends with the market volatility
We're honored to invite @Persona888, the champion👑of US Papertrading Competition (Season 3), to share his investment story!👏👏
Dive in here:
When did you start investing? What initially sparked your interest in the stock market and investing?
It got me thinking about the stock market when the GFC (global financial crisis) happened, which is about 2009, and got me wanting to learn about why stocks behaved differently at that period.
I believe initially my interest is the same as everyone else, which is the ability to provide one with freedom, not only financial freedom but emotional freedom if one makes it to the top.
What kind of investor are you?
Aggressive (I’m working on how to be less aggressive).
How would you describe your investing style?
Swing trade for the stock market.
How do you typically handle market volatility or downturns?
Market volatility is only good if you know how to be friends with it. When it comes to market volatility, if you have cash that you are ready to deploy into the market at the right time, then you can find assets at very reasonable prices when it comes to the door.
For example, the competition started at the Sep which is right after the market correction in AUG, so volatilities then to be staying higher. Therefore I can choose to follow the market leaders such as $NVIDIA (NVDA.US)$ which had a big drop in AUG.
Of course, high returns come with high risks. But if we want to survive through the volatility in the longer term, we need to adjust our size and trade responsibly. This is by staying invested for the long term and following asset allocation, one can ride out short term fluctuations and benefit from overall market growth. Of course patience and discipline are the key during such volatile times.
Do you have a specific risk management strategy?
Of course. High risk means high return. But if we want to survive in the longer term, we need to adjust our size and trade responsibly. This is by staying invested for the long term and following asset allocation, one can ride out short term fluctuations and benefit from overall market growth. Of course patience and discipline are the key during such volatile times.
Are there any impressive cases you can share, especially in moomoo? Like your best trade ever, whatever in the aspects of strategy execution or the profit rates?
The first trade I did with moomoo which I remember strongly would be the NASDAQ ETF call option, which was right after the recent bigger market correction at the beginning of AUG 2024. The market pulled back from the bottom into important resistance. Most of the other people were saying it will test the recent low from here, but I had the feeling it should go up more by pushing out the recent short seller on 14/08 by buying a call option on that day expiring next day (shorter time period = higher profit expectation but of course comes with higher risk, only do it when you have a strong feeling of what’s coming).
As it turned out , the $NASDAQ (NASDAQ.US)$ jumped about 2.5% at the open the next day marking the end of the recent market correction resulting in a big rise in the option price.
Can you describe the main strategy you employed during the competition?
Trend-following strategy. Try to follow the broader market sentiment.
How did you decide on which stocks to invest in and when to make your moves?
Check the popular stock list, and follow the leader and wait for the pullback before getting in.
What were the most challenging moments during the competition, and how did you navigate them?
The most challenging moments would definitely be waking up in the middle of the night trying to watch the US market opening and again at the closing to see what was happening.
By having a plan and sticking to it as best as possible really helped a lot to ease the process.
How did your previous trading experiences (if any) help you in this competition?
Learning about fundamental and technical analysis really helped me.
Were there any specific indicators or tools that you relied on heavily during the competition?
Moving averages, they are the main indicators I use to identify trends. In the end, trends are our friends, aren't they?
What key lessons or insights have you taken away from this competition that you think could benefit other traders?
When you believe you’re right and have a plan in place, you need to sit tight and stick to your plan, even when everything outside tells you’re wrong.
How do you think paper trading competitions differ from real-world trading, and how has this competition prepared you for real investments?
Main difference of course would be mental psychology. From the competition, I know my strategy works, but just need to find a way to incorporate it into my own psychological mindset.
Where are there specific features on moomoo that you found particularly useful?
Very easy to use platform, especially on phones and tablets. Very detailed analyst covering not only stocks in AU, but other countries especially US as well.
Is there any feedback or suggestions you'd like to share to improve the moomoo platform further?
I would love to see more competitions, but at the same time with better navigation inside the competition pages to find stocks and see charts etc.
What do you find most challenging in investing? How do you overcome it?
Most challenging in investing would be learning how to be at peace with oneself. Because in investing, no one can win 100% of the time, so when the bad time comes, we have to stop trading, and go do things that we enjoy.
If you could travel back to when you just started, what advice and warning would you give a younger person regarding investing or trading?
Take your time about trading and do more of the other things you enjoy along the journey.
As the old saying goes: ‘A journey of a thousand miles begins with a single step’. Which I believe also continues with many many single steps.
We truly appreciate@Persona888 for sharing his valuable and inspiring experience with us! Feel free to interact with him if you have anything to say!
Disclaimer: This presentation is for information and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Before investing, please consult a licensed professional. See this link for more information.
