Can dumb money follow the smart money to the moon?
Moomoo's new Star Institution feature allow us to see the latest position data of asset management companies, Institution investors, mutual fund and other financial profession. This is also commonly known as smart money.
Go to Explore > Star Institution
Go to Explore > Star Institution
On the other hand, retail investor like me are labelled as dumb money. (Do not get offended, it is coined by media to capture the eyeball).
So with this new feature, how do we follow the smart money?
* Use the Star Institution as a reference to study what they have done. Usually it would be delayed because the 13F is not "live" and it will difficult to follow it to a tee. It would be good as a reference or stock idea.
* Pay more attention to those smart money which have similar investing philosophy as you. Not all hedge funds or fund managers are the same. Some are well known to be shorting the market.
There are disadvantages of following the smart money blindly.
Firstly, they do not always make a profit, they have losses too.
Secondly, we may not understand their trade parameter, time horizon or mindset. So following blindly may need to a disaster. In fact, one of the greatest advantage we have as dumb money is patience. We can hold on to a position, ignoring the short term noise as long as the fundamental remain intact. This is how we can find the 100 baggers in the market.
$Shopify(SHOP.US$
$Berkshire Hathaway 13F(BK2999.US$
$Amazon(AMZN.US$
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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Deadking : Yeah
Panda2102OP :