Mooers' Stories Vol.4 - Cow Moo-ney
Hi, mooers. Welcome back to "Mooers' Stories", where we present mooers' insights and experiences. Since the launch of this column, we have witnessed many meaningful discussions and received in-depth comments. Thank you all for building this warm community! This time, we have invited a risk-averse, technical, and informed investor, @Cow Moo-ney, to share his investment story. Let's take a look!
Notes: All the information comes from the interviewee and is published under the interviewee's consent.
Personal Background
Investing: Successful investing is about managing risk, not avoiding it.
1. When and why did you start investing?
When: Bonds - 2019. Stocks - 2021 (still a newbie)
Why: First reason is due paradigm shift - in the older days, a lot of people placed their money in the bank to “safeguard” their hard-earned wealth. Some even put their savings at home. In today’s world, most of us want to grow our money, and I’m no exception. Hence, my first reason for investing is to build and grow my wealth.
The second reason is to beat inflation. Leaving cash in the bank or at home means that not only the money is not growing, it is losing its purchasing powers.
The third reason is to attain personal financial goal. Everyone has their own financial goals - such as exiting from the rat race, buying a home, paying for your children’s education etc. Similar to a lot of investors, I want to grow my money and achieve these goals at a faster rate. I want to be able to choose to stop working when I wanted to, not when I needed to.
2. What kind of investor are you?
A mixture of risk-averse, technical and informed investor. For risk-averse, I don't go for speculative stocks, and also avoid high-risk-high-reward investment products (this is after I bought a meme / Reddit-pumped stock). For being technical, I love reading technical charts but only know the basic stuff. For being informed, I constantly keep myself updated and informed about the companies that I am invested in. Also keep myself abreast of the micro and macro environments.
3. What will you research before investing?
Fundamental definitely comes first. Then I'll use basic technical analysis to try to determine good entry points. I also constantly keep myself updated with the news of the companies that I am invested in, as well as the macro environment. Things I research on a company - industry & market, current growth and future potential growth, competitive advantage, key personnel, financial health. For long term stocks, it's just a simple buy and hold strategy. I will research the companies per the previous point and watch them grow. Did a YouTube video on this, feel free to check it out!
4. Would you like to share your best trade with us?
I don't trade often. I am more of a long term buy and hold investors. That said, I still do some option tradings and looking to increase the frequency. At the moment, my so-called best or better trade that I have made is to sell puts for Google and closed it within 2 days to realise 75% profits. But of course, I could have held the contracts longer to get more profits, but as shared, don't be too greedy and learn to take profits. For this trade, I sold puts contracts because I felt the market has over reacted to Snapchat's poor earnings and Google was down a lot for 2 consecutive days. And I was quite sure Google will recover from the slump.
5. What are your trading routines?
I don't have a fixed routine. I wait for opportunities. So far it has work well for me. There is no need to trade everyday or every week. A lot of times, newer traders will want to trade even if the set ups are not good or odds are not in their favour. It takes lots of experience to do day trading i.e. be able to identify good set ups on a daily basis.
6. What lessons have you learned from investing?
Investing is not gambling. Yes, it is a probability game and hence it is often associated with gambling. But to me, there is a fine line between the both. Gambling is that you pump your money into the stock market based on poor research or speculative info, and then you hope for the best. On the other hand, investment is doing your due diligence in researching and picking a trade or a stock that will give you high probability of profit (note: it's high probability, but not guaranteed).
I have also learned how to face and manage risks. Every decision in life comes with risk - the decision to change a job, the choice of your career, the school you go to, the activities you decide to do each day, your diet, your lifestyle etc. It's the same in the investment world, you take ownership for the decision you made and be prepared to face the risks that come along with it.
7. Why moomoo?
Moomoo has many advantages. It's easy to use with good UI/UX, and most features are intuitive. It has free stock and low trading fees. The world class customer service is great as the chat agents are so prompt and responsive. Most importantly, there is an awesome community for interactions with other Moo-ers.
My first investment on moomoo was a little excited, but that's about it. Once I've made the first trade, I didn't feel much thereafter. It's like first day of school or at work, you will be fine from second day or week onwards.
Words for newcomers
For new long-term investors:
1. Since you're in for the long term, don't bother checking your stocks daily, because that is like checking on the trees everyday to see if they are growing
2. "If you invest $1,000 in a stock, all you can lose is $1,000, but you stand to gain $10,000 or even $50,000 over time if you're patient." - Peter Lynch
3. Always be open to change - it is ok to be wrong, staying wrong is the one that hurts. Accept that nobody is always right. Embrace conflicting views to understand the other side of the story. Humility is important.
4. Your investment mindset should be "build wealth slowly" and not "get rich quickly"
For new traders:
1. Don't try to make sense of the stock market, ride with the trend.
2. If you are buying option contracts, do giveyourself more time. Any timeline that is less than a week is gambling in my opinion.
3. Take profits off the table when you can because nobody will go poor by taking profits, even if the profits are not a lot. To add on, holding on to option contracts is like holding on to ice cubes - they will melt as time goes by. You will lose out to Theta (time decay)
4. Market presents opportunities for both bulls n bears i.e even when the market is bearish or going down, there are still trading opportunities for the bulls, and vice versa
5. You will not win every single trade. Learn how to cut losses, and you go again.
Finally, for all new investors and traders - do stay humble. If you're not humble, stock market will humble you. Read it again. If you disagree, it means likely you're still not humble enough haha
Alright, if you can resonate with some of the points above, I hope you can subscribe to my YouTube channel :) Jay el Keeps Learning
Interactive Activity
1. Make your choice
2. Talk to us
Topic: What else do you want to know about Cow Moo-ney? Any other topics you want to discuss with him? Comment below to win rewards.
Rewards:
1. 30 points for mooers who raise insightful and Cow Moo-ney-related questions.
2. 70 points for Cow Moo-ney 's reply to mooers' questions
Duration:
Now – Sep 15, 23:59 ET (Rewards will be distributed 5–10 working days after the activity ends.)
Feel free to share with us your ideas and opinions. Hope you can learn from each other and help mooers invest easier during the investment journey.
We're grateful to @Cow Moo-ney for sharing so much helpful information with us! If you want to share your story with us, comment below to let us know. We'll contact you soon!
Thanks for your time. See you next time!
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Disclosure: The testimonial provided herein may not represent other customers' experience, and there is no guarantee of future performance or success.
Disclaimer: This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors' financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information having regard to your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. Tap for more details: moomoo community article disclaimer-moomoo Help Center
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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Cow Moo-ney :
CowTastetic : Have you dabbled in memestock gambling before? Has it bitten you or have you benefited from it?
Shuseido : Well done bro!
Mars Mooo Cow Moo-ney:
Cow Moo-ney CowTastetic: Yes I did, but it was a very small amount of money. I kept the stock in my portfolio till today to remind myself of the mistake
Cow Moo-ney Shuseido: Thank you bro!
SpyderCall : "avoid high-risk-high-reward investment products (this is after I bought a meme / Reddit-pumped stock)."
"For long term stocks, it's just a simple buy and hold strategy."
"don't be too greedy and learn to take profits."
"Take profits off the table when you can"
excellent points here
Jesus is lord : why are the dates weird if u bought at 07/28/2022 and sold at 7/26/2022 did u regress two days i don't understand this anyway congrats
Jesus is lord SpyderCall: Spyder am i the only one seeing the dates are not matching up isn't it suppose to be bought at 7/26/2022 and sold at 07/28/2022
SpyderCall Jesus is lord: it was an option contract. that is why it looks a little weird.
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