1 00:00:05,559 --> 00:00:08,440 Speaker 1: Welcome to the Fear and Greed Business Interview. I'm Suan Alma. 2 00:00:08,560 --> 00:00:10,799 Speaker 1: Fear and Greed is working with the team at training 3 00:00:10,840 --> 00:00:14,880 Speaker 1: platform Moomoo on a series for investors. Every Friday, we're 4 00:00:14,920 --> 00:00:17,479 Speaker 1: bringing you an episode exploring how to use technology and 5 00:00:17,560 --> 00:00:22,400 Speaker 1: data for smarter investing. Today, it's all about the stock Screener, 6 00:00:22,480 --> 00:00:25,160 Speaker 1: a tool that lets you analyze stocks and single out 7 00:00:25,200 --> 00:00:28,960 Speaker 1: the opportunities within thousands of stocks on global markets. Remember, 8 00:00:29,000 --> 00:00:31,560 Speaker 1: the information in this episode is general in nature and 9 00:00:31,640 --> 00:00:34,960 Speaker 1: doesn't take into account your own circumstances. Michael McCarthy is 10 00:00:35,000 --> 00:00:38,720 Speaker 1: the Chief commercial Officer and market strategist at trading platform Moomoo, 11 00:00:39,000 --> 00:00:41,360 Speaker 1: which is a great supporter of Fear and Greed. Michael, 12 00:00:41,400 --> 00:00:42,560 Speaker 1: Welcome back to Fear and Greed. 13 00:00:42,920 --> 00:00:44,400 Speaker 2: Great to be back again, Thanks Sean. 14 00:00:44,920 --> 00:00:47,720 Speaker 1: I am delighted about this topic because it always makes 15 00:00:47,720 --> 00:00:50,680 Speaker 1: me wonder how you can get your head across so 16 00:00:50,880 --> 00:00:55,600 Speaker 1: many companies in the investing sphere. Start with the basics. 17 00:00:55,840 --> 00:00:58,080 Speaker 1: How does stockscreener work? 18 00:00:58,720 --> 00:01:00,600 Speaker 2: The way it works sewn that we give you a 19 00:01:00,760 --> 00:01:04,560 Speaker 2: whole lot of criteria for you to select from. Now, 20 00:01:04,760 --> 00:01:08,600 Speaker 2: the reality is that different investors and traders use different 21 00:01:08,640 --> 00:01:13,039 Speaker 2: methodologies to select what they see as the best market opportunities. 22 00:01:13,319 --> 00:01:18,240 Speaker 2: Some people use fundamental analysis, some people use only technical analysis. 23 00:01:18,360 --> 00:01:23,040 Speaker 2: Some people prefer financial information or valuation measures to select 24 00:01:23,120 --> 00:01:25,880 Speaker 2: their best option in the market. Some people like to 25 00:01:25,920 --> 00:01:28,960 Speaker 2: combine two or more of those categories. So there's a 26 00:01:29,040 --> 00:01:32,679 Speaker 2: whole lot of different ways for investors and traders to 27 00:01:32,720 --> 00:01:36,440 Speaker 2: select their stocks. But the screener works through a logical 28 00:01:36,520 --> 00:01:40,800 Speaker 2: process so that each person can determine what's the most 29 00:01:40,840 --> 00:01:44,399 Speaker 2: important criteria for them select it, and then look at 30 00:01:44,440 --> 00:01:47,720 Speaker 2: the stocks that fall out the bottom of the screener 31 00:01:48,200 --> 00:01:51,360 Speaker 2: to see what's suitable for their choice on that day. 32 00:01:52,120 --> 00:01:53,920 Speaker 1: Okay, so can we just run through some of those 33 00:01:54,040 --> 00:01:56,080 Speaker 1: So if that was me coming to it, I think 34 00:01:56,080 --> 00:01:58,720 Speaker 1: which ones that should I be worried about? Which of 35 00:01:58,800 --> 00:02:00,920 Speaker 1: the criteria I should pick up. There are a few 36 00:02:01,000 --> 00:02:04,639 Speaker 1: terms like technical analysis that's kind of a black box 37 00:02:04,920 --> 00:02:06,720 Speaker 1: to most of us. What are you talking about when 38 00:02:06,760 --> 00:02:08,480 Speaker 1: you talk about technical analysis. 39 00:02:09,080 --> 00:02:13,320 Speaker 2: By technical analysis, I mean chart based analysis of the 40 00:02:13,360 --> 00:02:15,760 Speaker 2: price action of a stock or an index. So we 41 00:02:15,840 --> 00:02:17,880 Speaker 2: have a look at the chart and we use that 42 00:02:18,000 --> 00:02:21,200 Speaker 2: the information on that chart to determine whether or not 43 00:02:21,280 --> 00:02:24,400 Speaker 2: a stock is an attractive proposition. And there are many 44 00:02:24,480 --> 00:02:28,240 Speaker 2: many different indicators used on the charts to determine that. 45 00:02:28,760 --> 00:02:30,799 Speaker 1: Okay, and part of that might have been what it's 46 00:02:30,840 --> 00:02:34,760 Speaker 1: treated before. Part of it might be around its valuation, 47 00:02:34,880 --> 00:02:38,160 Speaker 1: is price to earnings valuation. They're the sources of things 48 00:02:38,160 --> 00:02:40,519 Speaker 1: in technical analysis, Michael Well. 49 00:02:40,560 --> 00:02:43,639 Speaker 2: In technical analysis, we'd be looking at things like trends, 50 00:02:44,760 --> 00:02:48,200 Speaker 2: areas of support and resistance. We'd be using indicators to 51 00:02:48,240 --> 00:02:52,400 Speaker 2: determine whether stocks are overbought or over sold. We'd be 52 00:02:52,440 --> 00:02:54,760 Speaker 2: looking at previous price action to see it if it's 53 00:02:54,760 --> 00:02:57,359 Speaker 2: a good level to be entering or exiting a stock, 54 00:02:57,639 --> 00:02:59,919 Speaker 2: and there are many many different ways to do that. 55 00:03:00,639 --> 00:03:03,320 Speaker 2: There's all sorts of indicators, and we could get into 56 00:03:03,320 --> 00:03:06,240 Speaker 2: some of the more complex ones like Bollinger bands or 57 00:03:06,280 --> 00:03:10,560 Speaker 2: perhaps mac d Most of them sound more complicated than 58 00:03:10,560 --> 00:03:13,240 Speaker 2: they actually are, and a quick read of the definition 59 00:03:13,600 --> 00:03:16,200 Speaker 2: of any of the technical indicators on the movement platform 60 00:03:16,400 --> 00:03:19,120 Speaker 2: should give investors and traders a good idea of what 61 00:03:19,160 --> 00:03:20,120 Speaker 2: they can be used for. 62 00:03:20,680 --> 00:03:22,840 Speaker 1: Okay, great, So then I mentioned price to anything. That's 63 00:03:22,840 --> 00:03:26,040 Speaker 1: more of evaluation methodology. So that's another criteria. 64 00:03:26,000 --> 00:03:29,200 Speaker 2: That's exactly right. And in fact, if investors go to 65 00:03:29,520 --> 00:03:33,040 Speaker 2: the screen on the platform or in the app, they'll 66 00:03:33,080 --> 00:03:36,400 Speaker 2: see that these categories are laid out in a logical order, 67 00:03:36,440 --> 00:03:38,560 Speaker 2: and if they follow the order that they're laid out in, 68 00:03:39,240 --> 00:03:42,560 Speaker 2: you can often determine the most important criteria. So the 69 00:03:42,600 --> 00:03:45,120 Speaker 2: first section we have is quotes, and that's about the 70 00:03:45,160 --> 00:03:48,560 Speaker 2: company itself, and we start by asking investors to define 71 00:03:48,560 --> 00:03:51,920 Speaker 2: their universe, that is, select the exchanges that they'd like 72 00:03:52,040 --> 00:03:55,160 Speaker 2: to screen. So if you're an Australian only investor, perhaps 73 00:03:55,240 --> 00:03:58,240 Speaker 2: you pick Australia. If you're looking at Hong Kong and Australia, 74 00:03:58,320 --> 00:03:59,880 Speaker 2: you could pick both, or if you just want to 75 00:03:59,880 --> 00:04:03,440 Speaker 2: see what potential there is in US trading, you can 76 00:04:03,480 --> 00:04:07,160 Speaker 2: also select the US exchanges. So, whichever your preference, you 77 00:04:07,280 --> 00:04:11,360 Speaker 2: start by defining your universe. Once you've done that, you 78 00:04:11,360 --> 00:04:15,080 Speaker 2: can start working through the quotes criteria and things like 79 00:04:15,360 --> 00:04:19,159 Speaker 2: the market capitalization, in other words, what the market is 80 00:04:19,200 --> 00:04:22,520 Speaker 2: saying that company is worth can be an important criteria. 81 00:04:22,839 --> 00:04:26,039 Speaker 2: Some people like to deal in the biggest stocks, only 82 00:04:26,400 --> 00:04:30,120 Speaker 2: the largest and most liquid and most valuable stocks. Others 83 00:04:30,160 --> 00:04:33,800 Speaker 2: prefer to look for opportunities in smaller stocks, so defining 84 00:04:34,279 --> 00:04:37,480 Speaker 2: the market capitalization of the companies you're looking for can 85 00:04:37,560 --> 00:04:41,080 Speaker 2: help in that and We then work through a whole 86 00:04:41,200 --> 00:04:45,680 Speaker 2: number of other criteria based around the characteristics of the stock, 87 00:04:46,440 --> 00:04:48,800 Speaker 2: things like the weather a stock is at a new 88 00:04:48,880 --> 00:04:53,080 Speaker 2: hire or a new low, what its free market flow is, 89 00:04:53,520 --> 00:04:56,680 Speaker 2: what the turnover is, whether or not it has high volume. 90 00:04:57,000 --> 00:04:59,800 Speaker 2: All of these can be used as criteria determine if 91 00:04:59,800 --> 00:05:02,119 Speaker 2: this this is a stock that you'd like to see 92 00:05:02,520 --> 00:05:06,040 Speaker 2: information for. And that's all in the quote section. The 93 00:05:06,080 --> 00:05:09,320 Speaker 2: next section is the technical analysis section, as we mentioned, 94 00:05:09,880 --> 00:05:13,240 Speaker 2: and then you've got all the chart based signals things 95 00:05:13,320 --> 00:05:16,039 Speaker 2: that we touched on like macd's and Bollinger bands, but 96 00:05:16,080 --> 00:05:20,440 Speaker 2: there's also moving averages, there's RSIs. There's a variety of 97 00:05:20,480 --> 00:05:23,640 Speaker 2: indicators that are very popular with investors and traders that 98 00:05:23,760 --> 00:05:26,880 Speaker 2: can be used in the technical section. The next section 99 00:05:27,000 --> 00:05:30,440 Speaker 2: is the valuation section, and that once again goes to 100 00:05:31,120 --> 00:05:34,560 Speaker 2: the price to earnings ratio for example, or the price 101 00:05:34,640 --> 00:05:38,039 Speaker 2: to book ratio. These are ratios that many investors use 102 00:05:38,120 --> 00:05:41,799 Speaker 2: to determine whether a stock is expensive or if it's cheap, 103 00:05:42,240 --> 00:05:45,720 Speaker 2: and those who favor those sorts of measures can also 104 00:05:45,920 --> 00:05:49,240 Speaker 2: add that criteria to their screen. And then finally we 105 00:05:49,320 --> 00:05:52,560 Speaker 2: get to the financials section, where people can look at 106 00:05:52,560 --> 00:05:55,920 Speaker 2: some of the fundamental aspects of a stock, if that's 107 00:05:55,960 --> 00:05:58,480 Speaker 2: the way they select their stocks. And we're talking here 108 00:05:58,680 --> 00:06:02,279 Speaker 2: about things like return on equity, we're talking about margin, 109 00:06:02,400 --> 00:06:05,960 Speaker 2: we're talking about net income. So these measures fall into 110 00:06:06,000 --> 00:06:10,679 Speaker 2: different categories like the fundamentals, the profitability of the company. 111 00:06:11,120 --> 00:06:16,400 Speaker 2: It's dividends, it's liquidity, it's solvency, its efficiency, whether or 112 00:06:16,480 --> 00:06:19,360 Speaker 2: not you know, it's converting cash flow to profit. And 113 00:06:19,400 --> 00:06:22,479 Speaker 2: then there's growth crime here. So as you can tell, Sean, 114 00:06:22,560 --> 00:06:28,000 Speaker 2: I haven't even touched onial criteria here. And yet there's many, 115 00:06:28,040 --> 00:06:30,720 Speaker 2: many choice to see depending on the individual's preference in 116 00:06:30,760 --> 00:06:31,679 Speaker 2: selecting stocks. 117 00:06:32,320 --> 00:06:34,440 Speaker 1: Stay with me. Michael will be back in a minute. 118 00:06:41,480 --> 00:06:45,839 Speaker 1: My guest this morning is Michael McCarthy from MUMU. Okay. 119 00:06:45,920 --> 00:06:47,440 Speaker 1: So then the next step, and this is kind of 120 00:06:47,440 --> 00:06:49,479 Speaker 1: the one that I really like because sometimes there's so 121 00:06:49,600 --> 00:06:52,120 Speaker 1: much information I'm not quite sure where to go. There 122 00:06:52,120 --> 00:06:56,600 Speaker 1: are also recommended screeners, so there's a Warren Buffett strategy. For example, 123 00:06:56,880 --> 00:07:02,599 Speaker 1: there's like undervalued semiconductors, undervalued banks, high div stocks. I 124 00:07:02,640 --> 00:07:06,000 Speaker 1: think that is very helpful because for many retail investors 125 00:07:06,080 --> 00:07:09,240 Speaker 1: in particular, you don't have time to sit there. I 126 00:07:09,320 --> 00:07:12,840 Speaker 1: mean a day job, isn't to go through and infective 127 00:07:14,040 --> 00:07:18,120 Speaker 1: high networth family individuals. Sorry, high networth family people as 128 00:07:18,120 --> 00:07:20,440 Speaker 1: well like to actually have someone to give you a 129 00:07:20,520 --> 00:07:22,280 Speaker 1: guide on your strategies. Important. 130 00:07:22,600 --> 00:07:26,080 Speaker 2: Well, that's right, and some investors only use those pre 131 00:07:26,080 --> 00:07:31,520 Speaker 2: created screeners rather than construct their own, particularly because those 132 00:07:31,560 --> 00:07:34,640 Speaker 2: screeners have been selected and built to meet some of 133 00:07:34,680 --> 00:07:38,480 Speaker 2: the most common questions. We touched on the fact that 134 00:07:38,520 --> 00:07:41,720 Speaker 2: there's a dividend screener. A lot of longer term investors 135 00:07:41,840 --> 00:07:45,080 Speaker 2: are looking for high yielding stocks, and we've already created 136 00:07:45,400 --> 00:07:48,800 Speaker 2: a high yield screener so that people who are in 137 00:07:48,840 --> 00:07:52,640 Speaker 2: that category simply can use the pre built screener rather 138 00:07:52,760 --> 00:07:56,080 Speaker 2: than constructing their own if they prefer. Many investors start 139 00:07:56,120 --> 00:07:59,000 Speaker 2: out that way using the pre belt screeners, and as 140 00:07:59,000 --> 00:08:01,640 Speaker 2: they become more experience with the use of it, start 141 00:08:01,800 --> 00:08:02,680 Speaker 2: building their own. 142 00:08:03,400 --> 00:08:06,040 Speaker 1: Okay, Now, one of the great advantages of this is 143 00:08:06,080 --> 00:08:09,800 Speaker 1: that my investing universe can grow. So I know a 144 00:08:09,800 --> 00:08:13,080 Speaker 1: lot about ASX stocks, I know a little about Wall 145 00:08:13,120 --> 00:08:16,920 Speaker 1: Street stocks, a tiny bit about sort of sharing HAI 146 00:08:17,240 --> 00:08:21,560 Speaker 1: in London. But this tool means that my universe can 147 00:08:21,600 --> 00:08:24,160 Speaker 1: go exponentially. I suspect Michael. 148 00:08:24,320 --> 00:08:27,880 Speaker 2: That's right. Once again, we've created a logical structure, and 149 00:08:27,920 --> 00:08:33,400 Speaker 2: the underlying principle here is diversification. Diversification is a risk 150 00:08:33,480 --> 00:08:36,440 Speaker 2: management tool that all of us can use. Some risk 151 00:08:36,480 --> 00:08:39,479 Speaker 2: management tools are only available to the most sophisticated investors, 152 00:08:39,559 --> 00:08:43,520 Speaker 2: but all of us can spread our risk and offset 153 00:08:43,520 --> 00:08:48,320 Speaker 2: our risk by diversifying across not only industries within a market, 154 00:08:48,520 --> 00:08:52,040 Speaker 2: but across markets and across countries. So being able to 155 00:08:52,040 --> 00:08:55,640 Speaker 2: select stocks in markets where less familiar with is a 156 00:08:55,760 --> 00:08:59,760 Speaker 2: very powerful step towards a better level of risk management. 157 00:09:00,320 --> 00:09:03,280 Speaker 1: So last week we talked about the use of AI 158 00:09:03,480 --> 00:09:07,240 Speaker 1: in the Mumoo platform. How does that marry into what 159 00:09:07,280 --> 00:09:10,679 Speaker 1: we're talking about now with the stock screen is because 160 00:09:10,679 --> 00:09:12,800 Speaker 1: a lot of the things that you've been talking about 161 00:09:13,400 --> 00:09:16,680 Speaker 1: are investment concepts that have been around for a while. 162 00:09:16,960 --> 00:09:18,800 Speaker 1: But how does AI marry into this. 163 00:09:19,400 --> 00:09:22,280 Speaker 2: Well, let me be very clear, investors don't need to 164 00:09:22,320 --> 00:09:25,400 Speaker 2: know anything about AI to use the screening tools, but 165 00:09:25,880 --> 00:09:30,040 Speaker 2: underlying the searches that are part of the screening process 166 00:09:30,480 --> 00:09:33,480 Speaker 2: is a lot of AI process and so, for example, 167 00:09:33,960 --> 00:09:37,480 Speaker 2: simply the ability to scan so many different criteria once 168 00:09:37,880 --> 00:09:41,439 Speaker 2: is a result of the artificial intelligence tools that underlie 169 00:09:41,520 --> 00:09:45,800 Speaker 2: the Momoo platform and app so it's working. AI is 170 00:09:45,840 --> 00:09:48,800 Speaker 2: working away in the background to help you. Whenever you 171 00:09:48,880 --> 00:09:50,160 Speaker 2: use a screener. 172 00:09:50,200 --> 00:09:54,680 Speaker 1: Michael, I have to ask you what's your screener putting 173 00:09:54,760 --> 00:09:55,439 Speaker 1: on the spot here? 174 00:09:55,679 --> 00:10:00,959 Speaker 2: Well? As a four decade veteran of the markets, so 175 00:10:01,400 --> 00:10:04,800 Speaker 2: I have used many, many different screeners, but the one 176 00:10:04,840 --> 00:10:07,840 Speaker 2: I use on the Movement platform at the moment is 177 00:10:07,840 --> 00:10:11,120 Speaker 2: the option screener. Now, this is not for everybody, but 178 00:10:11,200 --> 00:10:13,240 Speaker 2: for those who have the experience and have had the 179 00:10:13,320 --> 00:10:17,400 Speaker 2: time to study markets and the instruments available, the option 180 00:10:17,559 --> 00:10:21,760 Speaker 2: screen is a very powerful tool in identifying short term 181 00:10:21,760 --> 00:10:26,200 Speaker 2: options trading opportunities. Now, as I say, this is not 182 00:10:26,320 --> 00:10:29,480 Speaker 2: for everyone, Sean and I'm at the more sophisticated end 183 00:10:29,679 --> 00:10:33,440 Speaker 2: of our user base, But for me, the one I'm 184 00:10:33,520 --> 00:10:36,040 Speaker 2: using right now is the option screener. 185 00:10:36,400 --> 00:10:38,959 Speaker 1: And I suppose the point of that is that, depending 186 00:10:39,000 --> 00:10:42,040 Speaker 1: on where you are in your investment experience, you should 187 00:10:42,080 --> 00:10:45,280 Speaker 1: actually be using the appropriate screener for you. I wouldn't 188 00:10:45,320 --> 00:10:47,440 Speaker 1: use an option screen to myself because I don't understand 189 00:10:47,559 --> 00:10:50,240 Speaker 1: enough about it. You would, but the point being use 190 00:10:50,320 --> 00:10:51,319 Speaker 1: what's appropriate for you. 191 00:10:51,559 --> 00:10:54,800 Speaker 2: Absolutely right. So there's for completely new investors, there are 192 00:10:54,880 --> 00:10:57,640 Speaker 2: pre built screeners to get them started. For those who've 193 00:10:57,640 --> 00:11:00,600 Speaker 2: been trading or investing for many years, they can go 194 00:11:00,720 --> 00:11:03,960 Speaker 2: to the level of sophistication that matches their skill levels 195 00:11:03,960 --> 00:11:07,160 Speaker 2: in the market. So you're absolutely right, there's something for 196 00:11:07,240 --> 00:11:09,120 Speaker 2: everybody in the screen of choices. 197 00:11:09,679 --> 00:11:11,439 Speaker 1: Michael, thank you for talking to Fear and Greed. 198 00:11:11,679 --> 00:11:13,319 Speaker 2: It's been a pleasure. Thank you, Sean. 199 00:11:13,480 --> 00:11:16,240 Speaker 1: That was Michael McCarthy from mumou, a great supporter of 200 00:11:16,240 --> 00:11:19,360 Speaker 1: this podcast. For more information on the mumu platform, follow 201 00:11:19,440 --> 00:11:22,400 Speaker 1: the link in today's show notes for this interview. And 202 00:11:22,480 --> 00:11:25,360 Speaker 1: remember that information in this podcast is general in nature 203 00:11:25,440 --> 00:11:29,040 Speaker 1: and you should get professional advice before making any investment decisions. 204 00:11:29,040 --> 00:11:30,600 Speaker 1: You've always got to make sure that the product is 205 00:11:30,679 --> 00:11:33,320 Speaker 1: right for you. This is the Fear and Greed Business Interview. 206 00:11:33,280 --> 00:11:35,240 Speaker 1: You join us every morning for the full episode of 207 00:11:35,360 --> 00:11:37,640 Speaker 1: Fear and Greed, daily business news for people who make 208 00:11:37,679 --> 00:11:45,160 Speaker 1: their own decisions. I'm Chane elmont Enjoy your day.