Learn Technical Analysis from a 12-Time World Champion!

Hey Mooers!

Recently, we had the absolute honor of hosting the legendary Fausto Pugliese—a 12-time world champion trader and early pioneer of day trading—at our Moomoo offline event.

Fausto dropped some serious knowledge bombs on how the market operates and how to trade alongside the "Smart Money." Whether you are a day trader or a swing trader, here are some golden takeaways for your trading journey!

Here are the Top 4 Trading Insights from the session:

Insight #1: Indicators Can Lag, Order Flow Leads

Many traders overcomplicate their charts with a dozen indicators. Indicators typically show you the left side of the chart (historical data). If you want to anticipate potential price action, you may want to look at the right side of the chart: Order Flow.

At the end of the day, price is heavily driven by Buyers and Sellers. Fausto suggests spending less time guessing the news and more time observing where the big money might be positioned.

Insight #2: TotalView can be a Game-Changer

Many retail traders guess where support and resistance levels are. But did you know you can often spot potential levels using NASDAQ TotalView (Level 2 Order Book).

By monitoring the order book, you can spot massive limit orders placed by larger participants:

– Potential Support: It’s not just a drawn line on a chart. It could be when you see a massive block of limit BUY orders sitting at a specific price point.

– Potential Resistance: A stock might stop going up if there is a large block of SELL orders waiting to be filled.Pro Tip: Watch the Time & Sales tab on Moomoo. If you see active buyers consistently eating through a massive sell wall, a breakout could potentially happen.

Insight #3: The "Line-Jumping" Hack

Here is a strategy often discussed on Wall Street: Consider avoiding placing your limit orders at exact round numbers (like $100.00 or $50.00). Why? Because that’s where many traders place their default orders. If you want to sell, consider placing your order at $99.86. By doing so, you position yourself ahead of the crowd, potentially improving your chances of execution for the cost of a few pennies.

Insight #4: A Golden Rule of Risk Management

What’s a common reason traders experience significant drawdowns? Averaging Down. Fausto emphasizes: If a short-term trade goes against you, avoid buying more just to lower your average cost. You might turn a small day-trade loss into a long-term trap. Accept the small loss, find a new setup, and move on.Also: Be mindful of Market Orders. In highly volatile stocks, the bid/ask spread can cause unexpected slippage. Utilizing Limit Orders can help better manage your entry and exit prices.

Put It Into Practice on Moomoo!

1. Open the Moomoo app.

2. Check the Top Gainers & Losers list to monitor market volatility.

3. Scroll down on a stock quote to find the Order Book (TotalView) to monitor buyer and seller dynamics!

🗣️ Let’s chat in the comments:

Have you ever used TotalView to spot a massive buy/sell wall? Which of Fausto's tips resonated with you the most? Let us know below!

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