In case you guys haven’t heard of us, we are Trading Analyst Playbook (affectionately known as TAP), a vibrant and authentic trading community with investors of all levels helping one another reap maximum profits with minimum work.

You’ve heard that there’s ‘no free lunch’ in this world – as an investor you would understand this principle better than most – and that’s absolutely true. We all reap what we sow. Here’s the thing though: maximum reaping can only happen if we sow in the right place at the right time. Then come the questions: Where is the right place? When is the right time? In other words, what stocks should you invest in, and when should you invest in them?

You might think we’ve got it all figured out; well, the world of trading is a little more complex than that. Yes, the answers are all out there for us to discover (and we at TAP are confident we can find what we need), but just as Christopher Columbus had to use a telescope to determine that his ship was about to hit land, we too require the right tools to ensure our trajectory will lead us to our desired destination – profit.

That’s where FUTU’s moomoo trading app comes in. Ever since doing our research and trial testing the app, the community members at TAP have been using it in our arsenal of tools. This article will tell you why.

This post was originally posted here. The writers, Trading Analyst Playbook, are veteran community members and bloggers on InvestingNote, with a username known as @TradingAnalystPlaybook and has close to 2,000 followers.

Stock Screener

The first feature we want to highlight is the Screener. This tool helps you identify potential trade opportunities, and using Ranking, you’ll be able to sort stocks according to various time periods (e.g. 5m, 5D), and even factors such as Market Cap, % change, and Volume for more in-depth monitoring.

moomoo app allows us to develop our own stock screener for the different strategies that we use at TAP and have it saved so that we can continue to monitor them. Here is a common one we usually use, which we like to call the ‘TAP Momentum Scanner’. (Yes, we like naming things so we have names for everything.) This strategy is best employed during the earnings season, because as earnings are released, the price moves can often be more dramatic and violent than a Quentin Tarantino movie.

Companies that report strong Earnings Growth and Strong Guidance would likely continue to trend up towards the next earnings report, with a strong upside momentum. Also, these companies are as tough as cockroaches in a nuclear holocaust, and we mean that in the best possible way. Those buggers survive everything. You see, when there is a corrective period in the market, they would often bounce back strongly and remain very resilient.

Looking at volume patterns over time can help us get a sense of the strength behind advances and declines in specific stocks and in entire markets. A rising stock price should see rising volume. Buyers require increasing numbers and increasing enthusiasm in pushing the stock price higher.

Below an example of how TAP might use the Stock Screener (for illustration purposes only):

Scan Criteria:

Market: US (We only trade US Market equities)

Market Value: Above 1 Billion (We don’t trade penny stocks due to increased risk)

Volume: Above 2 (We want to see a larger than usual volume run rate)

1D Volume: Above 500k (A stock with increased liquidity would reduce chances of a sudden downswing)

New High: Above the 100 Day High (This strategy works best when price is above the 100 day high as price would enter into “exploration” mode)

Using the screener, here are some strong names with earnings momentum that we managed to identify: $ATEN, TEAM, $LC, $ENPH, $CALX, $MXL, $PERI, $UPS, $SLAB, $PI, $UPS, $ASPN, $DXCM, $STX 

Remember that we as small fishes would like to follow the direction of the big boys: the institutional investors and insiders. Volume is usually a footprint that they leave behind. 

Of course, we don’t particularly enjoy the idea of feeding on their scraps, but if it’s gonna get us the profits we want, we’re more than open!

Here’s an example. DataDog Inc ($DDOG) had two high volume momentum moves above it’s breakout pivot point on earnings. By identifying $DDOG using this volume momentum strategy, we would have captured the 50% upside within 3 months! (see chart below)

Watchlist Customisation

Once we have identified the stocks that fit our criteria, we then add them into our watchlists. Depending on your strategy and preference, you may have separate lists for specific names. For example, you may organise them by their sector.

The watchlist function works as expected. We also really like the fact that it displays Pre- and Post-Market prices.

The trading hours of US stocks include pre-market trading hours (5 – 10.30pm), regular market trading hours (10.30pm – 5am), and post-market trading hours (5 – 9am) summertime SGT. This covers timing which is friendly to our Singapore timezone. Investors can choose whether to allow an order to be placed during the pre- or post-market period.

Orders that have not been filled during the pre-market trading hours will be automatically transferred to the regular trading period. Orders that have not been completed during the regular trading hours will be automatically transferred to the post-market period. You can tell we really enjoy this function since we shared about it in one of our previous articles.

Heat Map

The heat map is a frequently-used tool that we whip out at every market session. Just as a heat map is used after a football match to determine a team’s 

positioning throughout the pitch, the heat map on the moomoo app allows us to immediately identify the sectors that are leading and the ones that are lagging.

In March this year, we started to see a sell-off in the growth- and technology-related equities due to the fear of rising interest rates. However, under the surface, a new group had just begun sprinting like Usain Bolt: the economic-sensitive names, such as finance institutions (banks, insurance groups, etc.).

These stocks typically perform better in an environment of rising interest rates, as the increasing borrowing cost for companies would generate more profits for the banks. The heat map would immediately pick this out and we noticed this huge rotation that was taking place during that season. What a win!

Paper Trading

Having a strategy doesn’t always mean it works in every circumstance. We all could use a safe platform where there are zero stakes, to develop and test them out to ensure they are as airtight as possible. Cue one of the most important characters in this story, Paper Trading.

This feature enables us to create a demo account to trade the market using phantom cash. No, this is not a new function, but there is one thing that sets the moomoo app apart. You see, other trading apps and brokerages feature this as well, but they’re usually only usable for a limited period, e.g. 30 days.

However, you can use moomoo app’s paper trading function till the cows come home (which basically means forever)! This simple, underrated perk is also great for beginners who are still learning to navigate the craft of trading, and can use this paper trading function for as long as they need to build up the confidence to trade with actual money.

Even if you are a seasoned stock trader, you might want to try your hand at other products such as Options and Futures, which are also available. Now, anyone can be their own hedge fund manager!

Conclusion + Delicious Promos

Now you know why TAP chooses to use the moomoo app? Need we say more? Probably not. If you want to gain an edge in the market, it’s these little details we wrote about that matter. In fact, you might get an edge sharper than the words of Simon Cowell at American Idol.

Also, come and look for us within the moo community – TAP Invest! If you are still not part of their 16-million strong moo community, you can overcome your FOMO right now and check out their Welcome Bundle!

Register for a moomoo ID Reward:

• 180 days unlimited commission-free trading for the US, HK & SG stock market

Account Opening Reward:

• Free access to Lvl 2 Market Data for the US stock market
• Free access to Lvl 1 Market Data for the SG stock market
• Free access to Lvl 1 Market Data for China A Shares market
• 1 limited edition “moomoo Oppa” moomoo figurine merchandise

First Deposit Reward:

New users will need to deposit of SGD 2,700 or USD 2,000 or HKD 16,000 & above to receive the following,

• 1 Apple (AAPL) share worth around SGD 200
• SGD 40 Stock Cash Coupon Bundle

Seasoned Traders who are looking at consolidating your portfolio into one account will be pleased to know there’s a Shares Transfer-in Reward:

Accumulated Share Value successfully transferred-In (SGD) within Campaign Period,

• SGD 50,000 – SGD 99,999: rewarded 1 Apple (AAPL) share
• SGD 100,000 – SGD 199,999: rewarded 2 Apple (AAPL) shares
• ≥ SGD 200,000: rewarded 1 iPhone 13 (256GB) worth around SGD 1,469 and this is limited to 50 sets, first come first serve! Or 3 Free Apple (AAPL) shares.

Wait no more and sign up today! Happy Trading!

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All images in this article are for illustration only.

This article was written by Trading Analyst Playbook (TAP) in collaboration with FUTU SG.

Once again, this article is a guest post and was originally posted on TradingAnalystPlaybook‘s profile on InvestingNote. 

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