My April P/L Review
1. Due to privacy reasons, I'll not reveal my portfolio and daily P/L in April. Moomoo's Calendar P/L chart and Analysis are useful tools to track P/L record of my investment. You can modify the duration (start and end date) to decide which period of time you want to record. Here are some of my records:
2. Like I said before, my portfolio consists of mainly Tech stock and ETF similar to S&P500 ETF and M7 stocks. The months of April and May belongs to earnings call and expect some volatility after announcement. As I take long position, my concern is how the earnings reflect the company performance in the long run (end 2024 to 1H 2025). If the fundamentals are healthy, the short term volatility is just noise.
3. Take Meta as an example, I am not worried about the 10% plummet in share price after earning call. Likewise I'm happy with Alphabet surge 10% in share price but the profit is only in book value if you plan to hold the stock for long term.
4. I am more concerned with Fed rate cut postpone to 2H or later which may bring disaster to the stock market globally. This may imply that inflation is still a sticky issue. Investment strategy in May and beyond will depend on when Fed implement quantitative easing (QE) measure. China government has already implemented certain degree of QE measures to prevent the 2nd largest economy from becoming stagnation.
5. I'm buying options to protect my position hence using TA tools to predict price trends accurately is important (minimize risk). I may sell covered calls to earn passive income at calculated risk when the conditions permit.
6. My other investment is in mutual fund like Moomoo cash plus and in conjunction with promotion like the 6.8% pa return. This is to make my idle money "work hard".
7. There's crazy hype in cryptocurrency like BTC and ETH as supply will be halved this month. But I'm not investing until I can find some assurance given should the cryptocurrency brokerage closed down also known as bank-run. Currently cryptocurrency or digital products are not protected under SIPC scheme.
Bottom line: As a long trader, it is important to manage emotional trading to avoid panic sell (fear) and FOMO buy (greed) - you must DYODD. Hence I read financial articles from different sources (Google , Bing, X.com, YouTube, , Chat groups, Webrina, Offline Event etc) and write journals to review my investment plan frequently. You also need to know the limitations of Technical Analysis and Financial Analysis tools and ignore people with confirmation bias of a particular stock.
3. Take Meta as an example, I am not worried about the 10% plummet in share price after earning call. Likewise I'm happy with Alphabet surge 10% in share price but the profit is only in book value if you plan to hold the stock for long term.
4. I am more concerned with Fed rate cut postpone to 2H or later which may bring disaster to the stock market globally. This may imply that inflation is still a sticky issue. Investment strategy in May and beyond will depend on when Fed implement quantitative easing (QE) measure. China government has already implemented certain degree of QE measures to prevent the 2nd largest economy from becoming stagnation.
5. I'm buying options to protect my position hence using TA tools to predict price trends accurately is important (minimize risk). I may sell covered calls to earn passive income at calculated risk when the conditions permit.
6. My other investment is in mutual fund like Moomoo cash plus and in conjunction with promotion like the 6.8% pa return. This is to make my idle money "work hard".
7. There's crazy hype in cryptocurrency like BTC and ETH as supply will be halved this month. But I'm not investing until I can find some assurance given should the cryptocurrency brokerage closed down also known as bank-run. Currently cryptocurrency or digital products are not protected under SIPC scheme.
Bottom line: As a long trader, it is important to manage emotional trading to avoid panic sell (fear) and FOMO buy (greed) - you must DYODD. Hence I read financial articles from different sources (Google , Bing, X.com, YouTube, , Chat groups, Webrina, Offline Event etc) and write journals to review my investment plan frequently. You also need to know the limitations of Technical Analysis and Financial Analysis tools and ignore people with confirmation bias of a particular stock.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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I reflected trading experiences by writing journals. My comments are for educational purposes not financial advice.
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Oh its going : What is SGD
XxNephilimxX Oh its going: Sinapour it’s about 70% of USD right now on forex
Hin093 : newbie here, what is a confirmation bias?
Notforsale Oh its going: sing dollars
ZnWCOP Hin093: Confirmation bias is the tendency to actively search for, interpret, and retain information that matches their preconceived notions and beliefs.
People who often call themselves "financial experts", like to intimate others and unable to accept opposing views are confirmation bias red flags. Their financial views can be misleading and should be avoided.
Read more here:
Confirmation Bias: Overview and Types and Impact
Hin093 ZnWCOP: Thanks. I understand your point on analysing the global economy condition and particular companies' condition, but I'm still quite blur on how to use the information I've gotten out of them.
For example, I am able to read and extract information out of a company’s financial statement, but I don't know how to use it for decision-making.
I've also tried researching through TA tools, and used some while papertrading. I want to know what's your opinion about TA tools? For you, are they analysed to get information on when to buy/sell, or are they used mainly for confirming trends?
If it's okay with you, can you share what types of TA tools you're using too?
ZnWCOP Hin093: There are many TA tools out there. Some claim that they are "experts" and accurately predict the share price. But in actual fact, most will not show their losses nor their trade record (maybe didn't buy the stock out of fear). This goes to show that TA tool is not 100% accurate and someone with confirmation bias may use it to mislead investors.
Having said the above, TA tool is still useful in predicting price trends. I always stress the importance of knowing the limitations of TA tools. Take for example TA indicators, they don't agree with each other nor with indicators posted in the media. There are many reasons one of which is the time frame used. Although daily chart is commonly used, there are reasons why other prefer monthly, weekly, hourly, 1 minute. There is no right or wrong answer; depends on your investment strategy and risk appetite. Hence you should not follow how others invest blindly - always DYODD.
To keep the story short, there are also many aspects of TA such as indicators, wedges, candle sticks etc. My opinion is to choose one that is easy to use and practice. I use Moomoo TA 15 indicators to predict price trends for my options - to minimize risk. I practice using papertrade frequently and enhance my DCA strategy with TA. My trading insight is posted in this article:
Invest With Cici :Will Above-Expected GDP Growth Fuel a New Rally in U.S. Stocks? [Learn Premium Weekly Review]
ZnWCOP Hin093: Here is another example. I use TA indicators to predict the price trend and decide when is a good time to enter an option trade.
Invest With Cici :December CPI Puts Rate Cut Expectations Under Pressure: Will U.S. Stocks Continue ...
https://www.moomoo.com/community/feed/111741801660422?share_code=00V3oZ
I Am 102927471 :
Pinkiii : Nice article. Thanks for sharing your strategies. Always a big help for newbies like me
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