Mooers' Strategies: 5 Tips for Successful Long-Term Investing

Once more, Co-Wise: moomoo Tutorial Contest Part 8, "Why do you stick to long-term investment?" ended successfully. Thanks for participating in the contest.

@mooboo concluded that a long-term investment requires the most detailed due diligence and fundamental analysis. @Dadacai acknowledged that it's a strategy that allows you to make big bucks and sleep well at night.

Is the long-term investing strategy effective?
Of course. We all know that "Rome wasn't built in a day, and it takes time for companies to create value." Many people know that long-term investment is essential, but few actually do it. Psychologically, the phenomenon is related to behavioral deviations, including loss aversion, short-sighted thinking, and herding effect.

@HopeAlways tried to yield higher returns through compounding to earn interest-on-interest in long-term investment. @Mars Mooo adopted the TOPI matrix, covering timeframe, objectives, positioning, and types to decide how to go about investing.

Attention, Please! It's time to announce the winners. Congratulations on earning the $American Airlines(AAL.US)$ stocks!

Part Ⅰ: Winner Announcement

*The rewards will be distributed to winners within 15 working days—the ranking is sorted in alphabetical order.

1. How to react to the ever-changing market?
Many mooers are puzzled by the unpredictable ups and downs of the stock market. @Panda2102 once said that buy something you'd be happy to hold for ten years. When you buy a stock of a company, you own a part of it. As stakeholders, we should be patient and take responsibility. Investing long-term allows you to take your time to adjust your emotions and make rational decisions, resulting in good sleep at night. By keeping an eye on quarterly financial results, you can stay informed on the company's recent development.

2. Is long-term investment a sure win?
Actually, no. All investments involve risks. We should understand and stick to the circle of competence. @101752358 metaphorically said that LT Investment is like Marriages. Open your eyes wide before you buy – read, observe, study, and think. Do your homework (FA, companies leadership, cultures, visions, order books, cash flows, etc.). Establish your own strategies and analyze the price action with TA to determine the entry point.

3. Can we believe in and hold on to the high potential companies?
Unfortunately, @战神鑫爷 missed out on $Tesla(TSLA.US)$ that started at $600 and reached a record high last month, hitting over $1000. It reminds us that the potentially bullish companies do go beyond our imagination. Why do you stick to long-term investment? He first got $Apple(AAPL.US)$ at $124. Had he known how much it would grow, he would have held on to it. So we should look into the future rather than be grounded in the company's present.

4. How to make a comprehensive trading plan?
@AlfonsoDex shared with us his Long Term Investment Plan. Long-term planning is critical to hedge against uncertainty. First, you should identify a good stock. Then, the power to hold is everything. @AlfonsoDex will never sell a stock that is in RED. Instead, the dip would be an excellent opportunity to buy more shares so that you can increase the overall yield of your portfolio. Last, be patient. Try not to be impulsive and think twice before deciding where to put your money.

5. What happens if you are well informed?
Get the unknown out of investing! Most of us are terrified by the unknown. Suppose we invest in what we don't know. In that case, it could probably lead to disasters. @Rareinvestor 's secret of being good at emotion management and decision making is to get to know the companies you've invested in. If you stay informed, emotions won't get the better of you even if the stock prices are volatile.

Last but not least, many mooers mentioned an investment strategy called Dollar-Cost Averaging (DCA). @FAANG to MANGA and @Mama Cass agreed that DCA is a good strategy that could soften the impact of volatility on large-scale purchases of financial assets and take away a big bulk of your emotions when you invest.

For more valuable tips, please click Co-Wise: Why do you stick to long-term investment? to read. Don't forget to leave your comments below to tell mooers what you've learned!

Part Ⅱ: Voting for the “Mentor Moo” Title

First of all, we would like to announce the Mentor Moo on the previous topic: @Moo Top ! Congratulations on winning the badge! We truly appreciate your hard work in the Co-Wise contest!

Now, it's time for voting! Let's vote to see who will win the "Mentor Moo" title on this topic. Your vote means a lot to them!

Time in the market beats timing the market. Top performers in the market are usually long-term investors. Warren Buffett and Peter Lynch are good examples. Do you have any reason not to follow the masters? Let's take a longer perspective and stay cautiously optimistic and positively pessimistic. We may find mean reversion highly probable in long-term investment.

Disclaimer: All investment involves risk. Neither Futu Inc, nor Futu SG, nor moomoo endorses any particular investment strategy. You should carefully consider your investment goals and objectives when deciding on an investment strategy. Past performance is no guarantee of future results.

Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only. Read more