Mooer's Stories | AC886: A rising star who shorts forward to more than 230% profits
Hi, mooers. Welcome back to Mooers' Stories, where we present mooers' insights and experiences from our community. 🎤
We're honored to invite @AC886, the runner-up of Global Paper Trading Competition, to share his investment story with all the mooers in our community. Let's shout out to him!👏👏
Dive in here:
- At the beginning, I became interested in the US stock market after seeing extensive discussions and coverage about $GameStop (GME.US)$ in the news and on social media. Earlier this year, while browsing online stock trading platforms, I came across moomoo and thought of investing a small amount of money to get a direct experience in investing.
- During market downturns, such as when the $NASDAQ (NASDAQ.US)$ index drops by 2%, I usually stay on the sidelines with no open positions for a few days. My risk management strategy is mainly based on the stock's closing price, with intraday volatility as a supplementary factor. I sell when the stock closes below its opening price or displays a significant intraday volatility.
- This is my trading experience with $NASDAQ (NASDAQ.US)$: DSY from 2024/08/29 to 2024/09/04. I bought the stock because of its clear bullish trend and sold it due to its significant intraday volatility.
- My main strategy in this paper trading competition is short selling. I applied a simple filter to focus on stocks with an intraday gain of over 40% and a trading volume exceeding $300 million.
- I focus on stocks with a market cap below $100 million and avoid those with an opening price less than 20% above the previous closing price. I utilize the intraday moving average as an anchor — when a stock falls below its intraday moving average, it implies a short selling opportunity, especially for stocks with a daily gain exceeding 40%.
- The most challenging moment for me was when I got caught up in emotional trading. The losses it caused made me realize that emotional trading is irrational. Since then, I've tried to hold firmly to stocks I'm confident in and close my positions directly at the next day's opening.
The emotional trading refers to day trading in this paper trading competition. One of the examples is $FOXO Technologies (FOXO.US)$ on 2024/11/12. (It seems that execution points are not displayed in the paper trading), my expectation was for it to drop below $1. However, the volatility during the first two hours of the trading led me to repeatedly sell and buy in the opposite direction, and resulting in losses.
- All of my previous trading experiences were involved in long positions, and this is my first time short selling, so it's a completely new experience. My experience with long trading involves buying stocks that follow a bullish trend, while my experience with short trading shows that short-selling opportunities often occur with stocks that have surged significantly within a short time.
Personally, I believe both types of trading represent sensible options depending on the stock's position. Of course, long trades offer unlimited potential gains with limited losses, while short trades are the opposite. In this competition, I chose to focus on short selling because I wanted to explore this strategy and hone my skills as well.
- The key lesson I learnt during this competition is to avoid emotional trading. Specifically, if your judgment tells you that it's not the right time to buy, but a sudden surge in the stock price triggers an impulsive feeling to buy, or vice versa, then staying on the sidelines is the most sensible option, as impulsive trading usually results in losses.
- I think the biggest difference between paper trading and real-world trading is the mindset. However, if you regard paper trading as a real investment environment, it can provide valuable learning opportunities, which will eventually improve your real-world investing.
- Moomoo has a very user-friendly interface, and I think the ‘stock filtering’ feature is very useful.
- I think the current version of moomoo is already quite good.
- As I mentioned above, the most challenging aspect is emotional trading. I'm working to overcome it by controlling the impulse to buy or sell at the wrong times and focusing only on the stocks in my strategy.
- The most valuable lesson I've learned during my nearly one-year investment journey on moomoo is that learning from the past is always the most cost-effective and efficient way to grow. Specifically, you can learn from the past candlestick charts and intraday patterns to prepare for the various situations you may encounter in the future.
We truly appreciate @AC886 for sharing his valuable and inspiring experience with us! Feel free to interact with him if you have anything to say! Just in case you didn't know, you can also be the one to tell the story! Interested? Comment below to let us know! We'll reach out to you as soon as possible!
Thanks for your time. See you next time!
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.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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