Mooer's Stories | Catch the trend and discipline yourself

Hi, mooers. Welcome back to Mooers' Stories, where we present mooers' insights and experiences from our community. 🎤

Initially, it was watching my father invest in the stock exchange. My elementary school was nearby, and I often visited him during lunch breaks for meals. In the 90s, computers weren't widespread. Seeing a room full of people with computers, smoking with one hand and typing with the other, discussing the market, I thought they were cool and impressive. My interest in stocks probably started around that time.

I consider my investment style to be relatively conservative. I'm adept at identifying stocks that the market has overly underestimated. When opportunities arise, I decisively buy a significant amount and hold. I'm not someone who enjoys frequent trading. I persist in holding onto strong stocks.

In terms of stock selection, I usually look at the scarcity and liquidity of individual stocks. I believe that scarcity increases the chances of a stock being selected by institutions during sector rotation and thematic speculation.

Liquidity, such as strong cash flow, gives it the ability to undertake new businesses to improve performance. I would also combined those with the right timing, position, and people for the enterprise. I really like companies that change their management staff, which usually represents a positive signal.

Additionally, when buying, don't go all in at once; manage your position and buy in batches, without the pursuit of buying at the lowest point. Stock-trading is not an exact science; grasping the trend is already quite an achievement.

In volatile markets, I practice stricter position management. If it's confirmed to be a bear market, I'll leave to do something else.

There are many risk management strategies, but I believe the most important is discipline and trend judgment. Almost all risk management strategies are good, but discipline is the hardest to adhere to.

In terms of trading discipline, I think everyone has their own standards. My trading discipline is generally focused on profit-taking, stop-losses, and position sizing.

For instance, if I see a stock that is currently volatile and I decide to trade on a daily basis after analysis, my discipline would be to take profits at 5%, set a stop-loss at 3%, limit my position to 10%, and sell before the market closes; if I decide to trade on a monthly basis, my profit target would be between 30%-50%, with a stop-loss at 15%-25%, and my position would be at 30%.

If there's a stock that I'm particularly bullish on and decide to take a risk, I won't set profit-taking or stop-loss targets or holding duration, but I will set a very strict position line at 80%-90%. If the stock rises during this period and the position exceeds 80%-90%, I should find a time to rebalance it.

When it comes to stock trading, always keep a reserve, never go all-in. No one can fully predict the market. Going all-in means saying goodbye to other opportunities and having zero risk resistance. My worst investments were all due to not strictly enforcing the discipline of stop-losses and position sizing.

The rollercoaster from heaven to hell and back, and the experience of turning the tide in the middle, are all deeply memorable. My understanding of risk and recognition of trends also reached a new level after that.

In the competition, it's similar to reality, but in reality, I'm more cautious. Before buying a stock, I observe and confirm its trend through various methods and a lot of analysis. Technical indicators, volume and price analysis, fundamentals, industry prospects, and management background are all used in my trading. Technical indicators are important but not that important. I think everyone will have their own understanding and data models. Then it's about holding firmly, observing carefully, and staying alert.

The last few days of the competition were very tumultuous, with everyone taking turns to be in the lead, which surprised me with the intensity of the simulation competition and the level of the participants.

My previous trading experience was helpful in this competition. I've been more calm in terms of mentality. Simulated money is still different from real money, and the pressure is much less. I think participating in this kind of competition is a good exercise.

I refer to all the indicators provided by Moomoo. Indicators like MACD are useful but have their limitations, and I usually don't use them directly to determine the buying point. Moomoo is indeed the best application I've used so far, with its indicator tools, beautiful interface, and community interaction all meeting my needs.

The experience from this competition is that when you catch a strong stock and are in a bull market, you should be brave and daring. But I also want to say that as long as you are still in this market, it's too early to judge who is a winner and who is a loser. If you extend the competition time and make stock investment a part of your life, then mental strength is the real strength.

I wish you all winners, and let's encourage each other.

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!