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Anonymoo Private ID: 70035976
PhD Economics Researcher
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    We have different indicators embedded into the moomoo app stock view feed. For price analysis we are going with the moving average indicator.
    The figure above is scaled for a day view to get the complete MA trend lines within one graph for FUTU. Inc stock, since all the lines are not visible in small scale graphs we have to switch graph for a day scale. The orange color line shows the average of 28.24 vales while the Cyan color line sh...
    Moomoo MA default value indicator for stock value prediction
    1
    We know that there is a general information regarding an upcoming recession due to the impact of virus outbreak and slowed economy.
    We also know that most of the low skilled and middle skilled working jobs are increasing due to recent quitting shock.
    There is also a major blank in the economy due to 3 stimulus payments and not able to recover in the following year.
    However, S&P crossed all time high during this period. Why is that?
    T...
    Why I think Tesla stock will cross $2000 before the recession
    Why I think Tesla stock will cross $2000 before the recession
    First let's see where we can find star institutions. if you are in the main page in moomoo you can see the top is scrollable on left side, which has few more options.
    Here when you click on the explore option you will see star institutions AMC(Asset Management Companies) not the stock amc.
    Here you will see the top AMC holdings and their investment option. There is a small option "All" on the top right corner of the hot AMCs. You can click and open that option.
    if you scroll down a bit lower you will be able to see the top AMC of United states with their holdings and their position changes with their total investment funds, Normally it is in trillions.
    Here we can have the maximum use of this option. After scrolling down, you can see the top 10 institutions. These top institutions have tens of trillions of dollars which can practically move the market in any direction. We know the basic knowledge that the stock increases when the money flows in and decreases when the money flows out.
    So, If you can study these top institutional positional changes of stocks you can predict the actions the company is taking and can make use it to your advantage in buying/selling stock or buying /selling options.
    let's take the vanguard fund as an example.
    if you click on the vanguard group in AMC list you will see the current percent holdings of vanguard group. From here if you scroll a bit left you will see the prior proportion and the current proportion of the stock in this fund. We can see that the fund increased the number of stocks in thoer portfolio, example $Apple (AAPL.US)$ and $Microsoft (MSFT.US)$. From here we can assume the fund is securing shares of these companies, that indicates they will most probably go up in price, because of shortage of stocks in market. since vanguard fund's 0.14% change is equal to $5 billion(calculated by multiplying it with vanguard market cap) in stocks of Apple. which can make a huge impact in the stock supply. which in turn increases the demand and price of the stock.
    Similarly we can look at the top 5 (top 10 for more precision in your results) to have their positional changes on a particular stock. If we multiply these changes of the particular stock with the fund's marketcap we will get a final result.
    Important: some increases their positions and some decreases their positions, Hence we add the increasing positions and subtract the decreasing positional changes.
    Finally, it will be a good idea to also look at the market cap of the stock for example microsoft has a market cap of 1.6T and thus having a change of 5 billion can have a normal impact on the stock. However, stocks with smaller marketcap but the positional changes in billions can have a very high impact of stock prices.
    Or if you dont want to work too hard. In the hot AMC page, if you scroll a bit low you will see the hot stocks and their positional changes in the amc. Here you can directly choose to pick the stocks to buy or stock in the market.
    Happy trading
    How to use the star institutions in the most effective way possible with the data provided by Moomoo
    How to use the star institutions in the most effective way possible with the data provided by Moomoo
    How to use the star institutions in the most effective way possible with the data provided by Moomoo
    +1
    3
    Shiba recently gained many followers due to its giagantic returns. Everyone who was holding few dollars of shiba became a millionaire now. As, an investor bought $8000 worth of shiba in March 2020 is worth around $5.7 billion right now. But we know that these extreme gains will have to kill/destroy something to reach this gains. There are certain things we know and we dont know about the crypto currency trading. We know that it's an unregulated market, thus practically the real value of every coin is zero. So, why these people are millionaires or billionaires?
    1. Since its publically traded and unregulated, it can be easily manipulated to a point where it reaches to an unimaginably value. Thus, even if the coin is traded at that larger value, it creates an illusion that the coin is worth that amount. But once a larger portion of its quantity hits the market, and all buyers are fulfilled, it hits the ground. For example the recent event of the SQUID game token, it's a genuine token which was created by squid game company creators. It was a good concept, their website also had online squid games. However, creators sold their coins on market because it reached a crazy high amount. Many news sources say that the creators backed out of the project. However, I believe they sold it before leaving.
    If someone is holding 30-50% of an asset which was created on a borrowed blockchain network(Binance network) for free without any effort. why wouldn't they not sell it at $2800 per coin which they literally made for $0.
    who would bear the loss you might think?
    The people who are trading this coin on buyer side starting from $0.1 to upto $2799.99.
    Shiba Inu is also creating a similar environment but more drastically. Since, they are calling people who are buying and holding the coin as "Shiba army". This creates a false interpretation of the market as whoever is holding shiba inu is or will become a millionaire. For example just when shiba reached around 0.00009 someone dumped billions of tokens nearing in millions of dollars only(compared to shiba marketcap)
    On 28th of October, you can see a sharp decline from the value of 0.000089 to 0.000058 those were the times, when fewest people sold their shib making millions. But due to the constant shib promotion and FOMO caused among people, SHIB was able to come back to 0.000071. This got shiba a market cap of around 40 billion usd overtaking the USDC and doge.
    I expect that if someone who's holding billions of dollar worth of shiba comes and dump it on market because of fear or any possible reason. I believe the SHIB will also crash down like the SQUID token, bankrupting people who are on buy position at the market for SHIB, and the people who are holding it.
    However, I do believe that SHIB will be able to cross 0.0001 mark because of the constant advertisements and efforts of shiba army. But I expect there will be some major disadvantages of holding coin for too long after that.
    Please understand, trading is not like farming, where the money is purely generated. Trading is a secondary market, where money is only switching hands. The asset it switches hands on gets increased or decreased on values, that is not a universal price of the asset, since 10% of a stock or crypto will not be sold in a same price but 100% of the wheat could. A universal price is defined in a primary market, like commodity or factories(production, tech and ideas). Stocks thought are secondary but are derived from industries which are primary(producing something) or having technology and ideas. So, stocks can be a good alternative of growth in money, but not the crypto assets. I have already mentioned in my previous posts about the USDT coin, like how they ensure that its backed by USD but they dont even have thousand USD for tether savings backend.
    Even the ethereum is crazily overpriced. As the suggested transaction price proves the point. For example a bitfinex transaction costed around $33 million to transfer just $100 thousand. This is the transaction hash as a proof.
    https://etherscan.io/tx/0x2c9931793876db33b1a9aad123ad4921dfb9cd5e59dbb78ce78f277759587115
    Thought, it is a shady play to invest in new crypto or some meme coin. But of you get like millions or even thousands in it, just cash it out before it's too late.
    Happy Halloween and happy trading guys!
    If you would have bought $8 Shib in March 2020 it would have got you $5.7 million right now
    If you would have bought $8 Shib in March 2020 it would have got you $5.7 million right now
    If you would have bought $8 Shib in March 2020 it would have got you $5.7 million right now
    +1
    3
    Earnings and stock price have a direct relation with each other. It can easily be safe to assume that if the earnings are good and the stock is undervalued, the stock price will go up in future. similar can be said about the low earnings and an overvalued stock.
    The reason earnings are directly related to the stock price is because, if the stock price is overvalued, then sometimes organizations has to cut their employee salaries, bonuses or sometimes their jobs to cover up the appropriate earnings for their overvalued stock price. This was seen after the pandemic hit, people lost jobs and most quit. Which affected the S&P in a direct way as low workers caused the industries to have higher earnings and stock prices to go up.
    However, after pandemic also people started leaving jobs(due to other reasons) and now causing the even higher earnings for companies to get their stock up now. Currently, the US is suffering one of the greatest quits in jobs of the history.
    But I expect the companies won't be able to post greater earnings than this. As we know, this also follows the "laffer curve".
    with one side being completely employed and posting lower earnings as explained below in the graph.
    The point t* denotes the optimum level of employees to achieve the maximum earnings which we are looking at now, in the form of higher stock prices(direct relation). However, if this continues we can be looking at the declining slope of earnings due to low employees and lower production caused by that. This will cause the stock prices to go down in near future.
    Another factor to consider for the earnings and the stock price is the market capture. This market capture is caused by greater innovation, increased efficiency and better marketing by the organization. For example AMD has improved their microprocessors in a way that they contain more transistors per chip, performs greater operations per cycle, consumes less energy and more resistant to heat. The similar processors of the similar or higher price range of Intel are lower in benchmark than the AMD processors. Thus causing AMD to capture the microprocessor market(more sales more earnings) and posting higher earnings every year. Now, AMD is also competing against Nvidia in graphics unit market. A recent research shows that AMD graphics cards are more efficient in cryptocurrency mining compared to the Nvidia cards. This shows a promising future for increase in earnings by AMD and causing the stock to rise even further.
    Source: investopedia
    The Graph shows the increase in earnings of AMD that causes the stock price to go up. With few exceptions of news affecting stock price, but later adjusted thus following the earnings only in long run.
    Relationship between Earnings and Stock Price
    Relationship between Earnings and Stock Price
    1
    There are many indicators which are placed below the stock within moomoo. how to use these indicators to decide the position on a stock. Activate the bollinger  bands(boll), macd and kdj indicators shown below the stock graph. Select daily, weekly or monthly graph depending on how long you are going to hold your position. Look for these factors.
    1. Gaps on candles. Gaps are one of the major factor for trader, it's the number one trading rule that every gap is closed in future whether its upward or downwards. In the above graph there are 3 gaps. which is already indicated by moomoo interface. These gaps will be closed that means stock is more likely to go upwards in few days.
    2. Bollinger bands. Bollinger bands shows the upper and the lower support levels. If the stock price crosses the support levels such as in the figure above, it's very likely to get corrected(in this example above the stock might go up because it crossed the lower band) within the bands.
    3. MACD is very complicated one but very useful. In simple terms if the red and blue lines are about to intersect, then there is a reversal of position. In the above case it will intersect in few days to make an upward trend. Another indication in macd is the volume, the sell volume will reach to a peak below the graph where the buyers will overtake the volume and you will see a decreasing red volume below graph. In above graph it seems that the peak point is today or is in few days.
    4. KDJ is one of the most Important indicator because it can show you the overbought or oversold level of a stock.
    K >80 shows the stock is overbought
    d<20 shows the stock is oversold
    thus from the above graph we can say that Adobe stock is oversold and soon buyer/institutions will jump in to buy the stock.
    Average oscillators are also great indicators when it comes to short term trading. There are many average moving indicators, also provided by moomoo which shows the average line to trace the trend of a stock. The stock is more likely to follow the trend average line with a very less chance of going away from it. But the more bigger your graph sample size is the more correct your interpretation will be. That's why I believe in long term trades, because they are more likely to be correct when you use these indicators.
    hope it will be helpful
    Happy Trading
    4 Important Indicators on moomoo to show whether to buy/sell a stock
    4
    1. Stocks does not create money. It only switches hands from one person to another where someone loses and other benefits that marks the final price of the stock. Which means if you are getting profits on your stock position, it compromises for someone else's loss in the process. For example if you buy a rose from a farmer for a dollar and someone else is willing to pay 5 dollar for it, means that person is losing 4 dollars on it as he could have gotten it for a dollar from the farmer. Where you are getting this loss as your profit of 500% returns on your one rose stock.
    2. Stocks are largely illiquid in nature. The liquidity stands for the process where you can convert your asset to the real money. Stock does seem to be a highly traded asset, however it is largely dependent on the willingness to buy by the people/traders. For example if a stock is rising 10% in one day means that there are people who are willing to buy the stock even more than 10% of its price for that day. This might be caused by some news or internal information or maybe the trend. But nowdays it's largely caused by the short positions closing on the stock.
    3. The trading value of the stock is not exactly the real value you get for that if you sell in large amounts. Since the traded stocks on the exchange acco...
    2
    I suggested this stock a long time ago due to its rivalry with Intel. Where it won the microprocessor market against Intel. The company then started competing in the graphics processing market. Where it's now giving a competition to nvidia.
    One main reason I suppose the company will win the graphics processing market too because of its compatibility issue with its own processor. Since, most people are switching to ryzen processors, they are most likely to use the amd graphics cards, if their processing are equal to nvidia cards. Since, it will be more compatible to its own brand. Also it will give maximum performance and good computing speed. The recent research found out that amd graphics cards are better suited for mining crypto currencies than the nvidia cards, because of overheating and performance issues.
    This gives a conclusion that with a strong lady as their ceo, amd stock will no longer be staying in shadows and might over perform in upcoming quarters. To my estimations ...
    I usually follow the MACD weekly indicator for my preferences in buying a stock or any financial instrument. The bottom cross is the point where the buyers are suppose to exceed the sellers. Thus I included this indicator in my stock screener. There are more indicators for people for example RSI and MA. It also includes a good profit to earnings ratio and a high volume of turnover for past 10 days. There are many other things that can be also used. Thus the screener can be used in a variety of different styles and types according to preferences. However, I find these things important in short term stocks. ...
    My Stock Screener
    My Stock Screener
    My Stock Screener
    1
    From looking at my dad for years I have learned that stop loss is most important thing in possibly any business. It is more like the most obvious but universal rule. However, people(including me) always forget about it. People believe in thier taken position so much that they are willing to risk every single one of their penny on thier investments. But usually either end up loosing it all or get stuck in a low zone where their investments are of less worth then the stop loss values.
    With a stop loss you will get a second chance with half(depends on set value of SL) of your money. Where others will get stuck in a stock without SL(stop loss) and wait for years for thier position to rise up, you can always use the remaining of amount to invest in something else. With a SL you make sure that even when you are not looking at your position 24*7 you will still be able to save your half of funds in case of your portfolio crash.
    With a trailing stop loss however you will assure that you will always end up with a profit no matter what, in case your portfolio goes up and later crashes. You don't need a bloomberg live terminal, an economist or an expert trader to learn the trading rules. You can rea...
    4