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Mooer Stories: Saint is King - The 'Trading Secret' of making tens of millions consecutively.

Investing is the realization of your understanding of the world

2022 New Star Mooer, one of the nine global representatives of Futu's 9th Anniversary

Investment performance: Earned "six figures" from the principal amountEight figuresIn recent weeks, the achievement of consecutive weeks of profit.Nearly tens of millions in profit.

Friendly reminder: This article is quite long, it is recommended to like and bookmark for later detailed reading.Interactive surprises at the end of the article.

1. What kind of operations led to making tens of millions in profit continuously?

① Making nearly tens of millions on the 2nd day, the 'best trade' in history.

Q: Thank you very much to the saint (referred to as Benson hereafter) for accepting this interview. Recently, we saw your post in the Futubull circle sharing that you made nearly tens of millions in 2 days, with profits reaching '8 figures' for two consecutive weeks. We are very curious about what kind of trading you did.

A: Hello fellow mooer, I am the saint. Just as I mentioned in my post in the Futubull circle,At the end of September and beginning of October, I achieved consecutive two weeks of ten million profits, breaking my personal record.I have previously mentioned that this operation may be the 'best trade' I have ever made. At present, it seems that my forecast is gradually being realized by the market, which is quite gratifying.

In late August to early September, the Hang Seng Index once experienced a 'minor rebound', with the index rising to around 18,800 points. At that time, considering the overall weak macro situation of Hong Kong stocks, I believed that the Hang Seng Index lacked upward momentum at this 'level'. In addition, I predicted that the volatility (pullback pressure) of Hong Kong and US stocks in September and October would be relatively high.So, at the end of August, I decided to go all in, using options and bull and bear certificates to deploy light positions on the constituent stocks of the Hang Seng Index.。

Making '7 figures' out of '6 figures' in 3 years, the key lies in this point.

Q: In addition to the recent impressive investment performance, we have seen Benson sharing about using '6 figures' of capital to earn '8 figures' of assets within 3 years. What trading stories and techniques can you share with everyone?

A: At the beginning of July, I shared in the Mooer community《Enter my trading room.Programs have shared with everyone before. I mainly accumulated my 'first pot of gold' in the stock market through several important trades, such as selling short and buying calls, and the profits were quite substantial.$Invesco QQQ Trust (QQQ.US)$, buying $Taiwan Semiconductor (TSM.US)$calls, $CHINA MOBILE (00941.HK)$calls, etc., and the returns were relatively impressive.

In stock trading, I have always maintained a philosophy that trading does not require too many transactions, the most important being 'accuracy' and 'precision', sometimes there may only be a few opportunities to trade in a year, so grasping the core market trends is sufficient.For example, taking short positions in the Nasdaq 100 ETF last year. At the beginning of 2022, news of the US raising interest rates was already circulating in the market, but at that time the Nasdaq was still hovering at high levels, and the market did not reflect the potential factor of rate hikes.

Everyone knows the common saying in the US stock market"Don't Fight The FED" means not to challenge the Federal Reserve (Powell).At that time, the Federal Reserve's policy was to use rate hikes to restrain high inflation, and further rate hikes were expected. In addition, the valuation of US technology stocks was not low at that time, so rate hikes were bearish for technology stocks. Therefore, selling short US technology stocks was a good strategy. I chose to sell short the Nasdaq 100 ETF (QQQ) with options to leverage this opportunity.

There is a core principle in investing,do not invest in things you do not understand. It is important to know what you know and what you do not know.Just like this year, I actually missed the main uptrend of US "AI" stocks. Try to focus on things you are familiar with, things you are good at, "make the right call", and then "execute well", which is the most important!

Second, Benson's exclusive stock selection method + macro trend trading method

① Compared to dividend stocks, I prefer growth stocks

Q: Benson, do you have any unique stock selection techniques to share with mooer friends?

Actually, after making profits in the 'eight digits', I will allocate more positions to invest in the constituent stocks.However, when it comes to stock selection, I prefer growth stocks.Many investors actually have a habit of buying stocks for dividends. A friend told me that after buying stocks, you can still receive dividends, isn't that 'earning dividends'?In fact, many high-dividend stocks have traps. Why would a company pay out so much dividends to you? What incentives (traps) are there?This question is worth everyone's consideration, especially in recent years, many high-dividend stocks have had a very bleak performance.

If you want to earn dividends, the current interest rates are actually quite high, so there's no need to buy dividend-paying stocks now.My concept is that buying stocks is equivalent to buying the future.If you are buying stocks for dividends, it means you are buying the past of the stock. If it has no development, it will use dividends to attract you to 'sit'.Stocks are always about buying the future. It is recommended to buy stocks with good trends and promising industry prospects.。

In addition, I have mentioned in my previous post,A bear market is a good time to test the quality of a company,because in a bull market, investors tend to pay more attention to valuations; whilein a bear market, when more investors prefer stable investments, a company's ability to generate internal cash flow becomes more important,good companies with long-term development are also being selected in this process. For example, in a bear market, Futu's customer retention rate can still reach 98%, and it is rare to see profit growth, which I have a positive long-term outlook on as well.

② If you want to "earn big money", use macro trend trading methods.

Q: We see that Benson is very good at grasping mid-term opportunities, do you have any core methods to share with mooers?

A: I prefer to usemacro trend trading methodto explore trading opportunities. For example, I will first determine the direction of this quarter, whether the Hong Kong and US markets will go up or down? What are the factors influencing the market up or down? Such as politics, economy, trade chains or supply chains, then analyze industries and individual stocks (companies). The core elements of macro concerns, focus onFed rate hikes, rate cut expectations等。

After analyzing the macro information and understanding the general trend, we can confirm the trend through technical charts. For example, this year the Hong Kong stock market economy is relatively weak. We took out 80 constituent stocks in the Hang Seng Index to observe their trends, you will find that only telecom and petroleum stocks are trending upward. While most of the Hang Seng constituent stocks are either moving sideways or downward. In this scenario, objectively judging that the Hong Kong stock market may not necessarily have a good long opportunity. From the perspective of chart analysis, in June this year, some sectors also showed signs of breaking down, indicating that the "major players" and "smart money" have temporarily left, so you need to be very cautious at this time!

Constituent stocks distribution chart in Hang Seng Index

Usually, the trades where I earn more have a deployment cycle of 1 to 2 months (calculated by month), so it is necessary to pay attention to macro impact factors and closely track them for better confidence and higher success rate.Therefore, it is essential to pay attention to macroeconomic impact factors, combined with close monitoring, for better assurance and a higher success rate.

Three, 2 tips to know about trading options

Q: Benson, we see that you are adept at using options trading tools. Could you share some tips on trading options with mooers?

A: I have accumulated a lot of wealth in the stock market due to options trading. I have also paid quite a bit of 'tuition fees' before. Here, I can share the 2 tips that I believe are essential for trading options!

① It is necessary to understand the gameplay of options trading before engaging in options trading

We all know there are three motives for trading options, namely:Directionality (bullish, bearish), volatility hedging, arbitrage.。

My motivation for using options is quite simple, mainly as an options buyer, mainly by determining the future trend of the underlying asset, hoping to amplify profits through the leverage effect of options.However, sometimes, even if you determine the correct direction, you may not necessarily make a profit. For example, I tried buying options for secondary stocks in the Hong Kong market. When these options showed a significant increase as I expected, and I was ready to take profit and exit, I found that no one was taking the goods! If I wanted to sell, I had to lower the price by more than ten points to sell, which means I had to 'discount' in order to trade, resulting in making significantly less profit.

This trade actually taught me a lesson,Before trading options, you must clearly understand the rules of options in different markets.Understand the underlying assets that options are based on (nature of stocks, liquidity), how options are used, in which market they are used, suitable assets for trading, and when to use them? This is crucial when trading options!

②Two factors to watch out for when trading options, these two factors must be handled 'carefully'

We know that there are actually many factors that affect the price of options, such as:underlying price, direction of buy/sell, exercise price, volatility, time value, risk-free interest rate. In fact, many methods for determining the direction have been discussed above. Here, we will focus on the "time value" and "volatility" of options, be careful!First of all, if you buy an option, the underlying asset tracked by the option may move in the direction you expected, but if the expiry date is too short, you may easily incur losses

because options have the concept of expiration date. Once the underlying price does not enter the money at expiration, the option is worthless, so it is important to focus on the expiration date.Also, as the expiration date approaches, the time value decay of the option will be greater. Based on this feature, and my habit of deploying medium-term strategies, I generally do not operate with "near-term options". Sometimes, to avoid "time value decay", I would consider purchasing some bull and bear certificates for deployment.

Another important point to consider is the concept of implied volatility, which is equally worth paying attention to.If a target symbol has risen significantly, and you choose to chase the high with options trading, when you buy at the peak of implied volatility, even if the underlying symbol continues to rise after a slight dip, the price difference of the options you bought initially will be much lower, resulting in a significant decrease. In this situation, buying the actual stocks would yield profits, but buying call options would lead to losses.

Finally, I would like to emphasize one key point,Trading options actually requires more caution compared to trading actual stocks, as there are many pitfalls. It is important for everyone to understand the characteristics and risks of options trading before trading, develop a trading plan, and implement stop-loss and take-profit strategies!Trading options actually requires more caution compared to trading actual stocks, as there are many pitfalls. It is important for everyone to understand the characteristics and risks of options trading before trading, develop a trading plan, and implement stop-loss and take-profit strategies!

IV. Recommended Past Futubull Articles

Q: In the past,@o聖者為王oThere have been many high-quality articles shared in the Futubull community in the past. Can you recommend 3 excellent works for mooers to revisit?

A: Sure, I have selected three previously written articles. Mooers who are interested can go take a look:

①Without experiencing being a cabbage, how can you enjoy the fragrance of meat? A seven-figure return in bearish years, doubling investment returns, investment insights.

②Love Your Air Force Bearish Investment Strategy. Half-month battle results. Resting temporarily after sounding the retreat zz

③Cash commodity funds are king. There is no major general in Shu, with Liaohua as the vanguard.

Once again, thank you very much to the saint for taking precious time to participate in this interview. Looking forward to you sharing more interesting trading stories and investment methods in the Mooer community!

Five. Conclusion.

In the bull circle where hidden talents gather, we have found many experienced traders who have been through market trials and cycles. They have some classic investment cases and stories in actual combat, with replicable and scalable investor methodologies behind them, which we believe can provide some enlightenment and reflection for mooers.There is no 'sure win' methodology in the investment world, providing mooers with various real-life cases and trading methods is also the original intention of setting up the 'Treasure Mooer' section.Mooers can choose appropriate investment strategies and investment methods based on their own situations, complement each other's strengths and weaknesses. Thank you for patiently reading up to this point, we hope you will enjoy this content.

Interactive with rewards: Share your insights on the content of this article in the comments section. Mooers with over 30 words of reasonable comments will receive 66 points.Deadline for the activity: 11:59 pm on November 5, 2023. Stay tuned@牛友有料到, so you won't miss the next 'Treasure Mooer'!

*Disclaimer: The content of this article is provided by@o聖者為王oCompiled from interviews accepted by mooer, the images in the article are provided and authorized for use.@o聖者為王oThe article cases are for reference only, not for investment advice. The related information in the article does not constitute any industry or indicators recommendation; the stock information and introductions involved only represent the user's personal opinions, not constitute any stock recommendations. Past performance of individual stocks does not represent future performance. The stock market is risky and investment needs to be cautious.

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