Account Info
Log Out
English
Back
Download
Log in to access Online Inquiry
Back to the Top
Mooers' Stories
Views 15K Contents 23

Mooers' Stories | Champion sharing of how to profit $1M by option strategy @JMack89

avatar
Mooers Lab joined discussion · Yesterday 18:29
Hi, mooers. Welcome back to Mooers' Stories, where we present mooers' insights and experiences from our community. 🎤
Mooers' Stories | Champion sharing of how to profit $1M by option strategy @JMack89
We're honored to invite @JMack89, the CHAMPION of AU Papertrading Competition (Season 2), to share his investment story with all the mooers in our community. Let's shout out to him!👏👏
Dive in here:
Would you mind sharing your background, including age, location, profession, and others? You can keep some info private if you like.
- Sure! My age is 34 years old and I live in Melbourne. I work as a Senior Developer in Automation for private and public sector clients.
What are your hobbies?
- My hobbies include backcountry skiing, climbing, stock trading and spending time with my partner & dog on the weekends.
How long have you been involved in stock trading or investing? When did you start investing?
- I began my investment journey 15 years ago after graduating fresh out of uni with a Finance degree.  
- Although this education gave me a step up over most people my age who hadn’t completed tertiary studies or well versed in quantitative analytics methods, I quickly realised I had a lot to learn in the world of stocks, ETFs, CFDs, options and other financial instruments available. Back then we certainly didn’t have the myriad of investment tools, live data availability and definitely no AI models to assist our decisions like today.  
- Moomoo has certainly progressed my learning with simulations such as Paper Trading by putting my trading techniques into practice and learning from my mistakes without material consequence.  I therefore am very grateful for @Moomoo AU, as this platform has allowed me to hone my skills as an informed investor.
What initially sparked your interest in the stock market and investing?
- I was initially drawn to stock market trading due to the potential to earn solid returns and passive income from dividends. This has since progressed to a more active interest and eventually I would like it to be my retirement plan!
What kind of investor are you?
- I am somewhat of a hybrid investor utilising both fundamental and technical analysis. Recently I have been using AI and online modelling tools to aid my investment decisions.            
Story Sharing
How did you learn to invest at the beginning?
- Primarily through online education and learning from my investment mistakes.
How would you describe your investing style?
- As mentioned I have a bit of a hybrid style primarily Growth at a Reasonable Price (GARP) for the ASX competition and momentum/breakout investing for the US competition.
What are your long-term goals for investing?
- My primary long-term goal is to achieve financial security and independence. I want to build a portfolio that generates enough passive income to support my lifestyle without relying entirely on earned income.
- While I aim for growth, I also focus on preserving capital and managing risk. My long-term goal is to balance growth with stability to protect my investments during market downturns.
How do you typically handle market volatility or downturns?
- I typically handle this using hedging tools such as options.  Ironically this was my downfall in the last trading session of the US competition - lesson learnt! (don’t underestimate your competitors before the end of the competition.) Refer to my community post for the details.
Do you have a specific risk management strategy?
- Capital Preservation and Hedging with options (or diversifying with alternative sectored stocks) where available.
Are there any impressive cases you can share? Like your best trade ever?
Not in my actual trading account but in paper trading. I deployed a long saddle option strategy with $Tesla (TSLA.US)$ that earnt close to $1M USD profits over two trading sessions.    
About the Paper-trading Competition            
Mooers' Stories | Champion sharing of how to profit $1M by option strategy @JMack89
Can you describe the main strategy you employed during the competition?
- My strategy in this competition was to focus on fundamental analysis primarily and use technical indicators for managing exit positions. I knew, unlike the US competition where options could be leveraged heavily to benefit off volatility, the ASX competition could be won picking a handful of high performing stocks.
- From the get-go, I knew many traders would jump on the $Droneshield Ltd (DRO.AU)$ bandwagon. While it was tempting to join them for a quick gain, I opted for a more calculated approach, focusing on stocks with strong fundamentals and potential for sustained growth. I believed there could be a sharp correction on this stock – I had a plan and decided to stick with it…
I utilised some ‘good old fashioned’ stock valuation techniques incorporating AI to help retrieve these indicators and managed to find some stocks that I believed had been oversold.        
How did you decide on which stocks to invest in and when to make your moves?
- Company Financials: Considering the company's earnings, revenue growth, and overall financial health.  Using techniques such as Forward PE, PS and PB ratios and utilising AI to generate updated ratios and metrics.
- Market Position: Assessing (and reassessing) the company's competitive position within its industry.
- Recent News and Announcements: Evaluating any recent company news, such as earnings reports, product launches, or other significant events that might impact stock performance.        
What were the most challenging moments during the competition, and how did you navigate them?
- It was important at some stages of the competition to deploy capital preservation techniques and selling stocks that met my target price to preserve the margin already realised. These techniques included rebalancing, where I adjusted my portfolio to maintain my risk tolerance; hedging in the US competition to protect against volatility; diversification to spread risk across sectors; profit-taking to lock in gains; and maintaining cash reserves for flexibility.
- This proved particularly helpful early August where I thankfully predicted a change in macro economic conditions (recessionary fears and BoJ interest rate rise). Sticking to these principles allowed me to succeed and ensure that I had an edge over the competition.
What key lessons have you taken away from this competition that you think could benefit others?
- Doing my research prior to the competition would probably be the biggest take away. I believe this gave me the edge for stock selection.
- Liquidity was also an important consideration for options trading in the US competition, ie. don’t choose illiquid positions.
How do you think paper trading competitions differ from real-world trading, and how has this competition prepared you for real investments?
- The main difference is my risk tolerance was lower. This however worked to my advantage as I did not let emotion take over in my investment decisions and stuck to my principles.
Mooers' Stories | Champion sharing of how to profit $1M by option strategy @JMack89
Any advice for moomoo?
Where are there specific features on moomoo that you found particularly useful?
- Although not so much in the ASX (papertrading) competition, one of my favourite features of moomoo is the visualised AI data.  This was particularly helpful for options trading and helped me pick opportune times to close positions. I was fairly new to options trading however managed to learn quickly using moomoo’s option trading course.        
Is there any feedback or suggestions you'd like to share to improve the moomoo platform further?
- I would like better charting capabilities as I currently do this outside of moomoo. Maybe a collab with tradingview!        
Any advice for mooers?
If you could travel back to when you just started, what advice and warning would you give a younger person regarding investing or trading?
- Always do your own research! When I was younger, I overlooked important data but this has also been a learning process.    
   
   
We truly appreciate @JMack89 for sharing his valuable and inspiring experience with us! Feel free to interact with him if you have anything to say! If you want to know further about @JMack89's strategy, check his Recap Article here>>
Join the AU papertrading group & chat with @JMack89 directly NOW.
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!
   
*ps: The AU Papertrading Competition in moomoo is only available for Australian users now.
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. Read more
73
6
1
1
+0
19
Translate
Report
74K Views
Comment
Sign in to post a comment

View more comments...

avatar
Mooers Lab
Moomoo Community Official Account
Always here for mooers!
26KFollowers
467Following
11KVisitors
Follow