1 00:00:05,680 --> 00:00:08,479 Speaker 1: Welcome to the Fear and Greed business Interview. I'm Sean Almer. 2 00:00:08,600 --> 00:00:10,840 Speaker 1: Fear and Greed is working with the team at trading 3 00:00:10,880 --> 00:00:14,800 Speaker 1: platform at Moomoo on a series for investors. Every Friday, 4 00:00:14,840 --> 00:00:17,439 Speaker 1: we'll bring you an episode exploring how to use technology 5 00:00:17,440 --> 00:00:21,400 Speaker 1: and data for smarter investing. Today, it's all about AI, 6 00:00:21,600 --> 00:00:26,239 Speaker 1: artificial intelligence. Just as AI is transforming so many industries, 7 00:00:26,280 --> 00:00:29,800 Speaker 1: it's also changing investing with a range of tools available 8 00:00:29,800 --> 00:00:34,360 Speaker 1: for market insights, including risk analysis and tracking stock price patterns. 9 00:00:34,920 --> 00:00:37,480 Speaker 1: But the key is knowing how to use the AI 10 00:00:37,680 --> 00:00:41,280 Speaker 1: trading tools to make better investing decisions. The information in 11 00:00:41,320 --> 00:00:43,839 Speaker 1: this episode is general in nature and it doesn't take 12 00:00:43,840 --> 00:00:47,360 Speaker 1: into account your own circumstances. Michael McCarthy is the chief 13 00:00:47,360 --> 00:00:51,120 Speaker 1: commercial Officer and market strategist at trading platform Mumu, which 14 00:00:51,159 --> 00:00:53,360 Speaker 1: is a great supporter of this podcast. Michael, Welcome to 15 00:00:53,400 --> 00:00:54,000 Speaker 1: Fear and Greed. 16 00:00:54,440 --> 00:00:56,120 Speaker 2: Thanks very much, Sean, it's great to be here. 17 00:00:56,480 --> 00:00:58,920 Speaker 1: Did you ever think we'd be talking about AI and 18 00:00:59,080 --> 00:01:01,200 Speaker 1: investing when you started off in your career. 19 00:01:02,200 --> 00:01:05,839 Speaker 3: Well, I've got a long history of attempting to use 20 00:01:06,000 --> 00:01:09,800 Speaker 3: computer power in markets. In the nineties, I was a 21 00:01:09,840 --> 00:01:12,840 Speaker 3: trader with one of the large global investment houses, and 22 00:01:13,000 --> 00:01:16,240 Speaker 3: for two years my brief was to examine black boxes 23 00:01:16,319 --> 00:01:20,840 Speaker 3: what we used to call algorithmic trading. So yeah, I've 24 00:01:20,840 --> 00:01:22,839 Speaker 3: been involved in this for a very long time. 25 00:01:22,920 --> 00:01:23,240 Speaker 2: Sean. 26 00:01:23,520 --> 00:01:26,959 Speaker 3: I am impressed with the power of the latest generation 27 00:01:27,160 --> 00:01:29,360 Speaker 3: of AI tools, where I have gone more than one 28 00:01:29,400 --> 00:01:31,520 Speaker 3: step ahead in the last couple of years when it 29 00:01:31,560 --> 00:01:34,120 Speaker 3: comes to employing the power of computers to make the 30 00:01:34,200 --> 00:01:36,319 Speaker 3: investing job smarter and faster. 31 00:01:37,040 --> 00:01:38,600 Speaker 1: Okay, you mentioned the black box, and we used to 32 00:01:38,640 --> 00:01:40,960 Speaker 1: talk about the black box. Maybe not so much nowadays, 33 00:01:40,959 --> 00:01:44,120 Speaker 1: but at its core is the main benefit of AI 34 00:01:45,040 --> 00:01:48,920 Speaker 1: to simplify the extraordinary amount of data that's available. 35 00:01:49,440 --> 00:01:51,160 Speaker 2: That's exactly what it is, Sean. 36 00:01:51,840 --> 00:01:53,720 Speaker 3: You know, a lot of people of my vintage are 37 00:01:53,760 --> 00:01:56,560 Speaker 3: concerned that AI enabled robots will one day take over 38 00:01:56,600 --> 00:01:59,280 Speaker 3: the world and enslave humanity. There are plenty of people 39 00:01:59,320 --> 00:02:02,000 Speaker 3: worried about the look for their job given the advent 40 00:02:02,040 --> 00:02:04,960 Speaker 3: of the latest iteration of AI. But the reality of 41 00:02:04,960 --> 00:02:08,040 Speaker 3: AI is quite different. Machines are not going to take 42 00:02:08,080 --> 00:02:11,160 Speaker 3: over the world, not yet anyway. But the reality is 43 00:02:11,320 --> 00:02:15,760 Speaker 3: AI harnesses the power of computing to bring us in 44 00:02:15,840 --> 00:02:19,360 Speaker 3: the terms of the market the information we need. The 45 00:02:19,360 --> 00:02:21,760 Speaker 3: thing about at the moment, Sean, is that nobody is 46 00:02:21,800 --> 00:02:23,639 Speaker 3: short of information about the markets. 47 00:02:23,840 --> 00:02:25,040 Speaker 2: It's knowing what's important. 48 00:02:25,160 --> 00:02:28,040 Speaker 3: Getting straight to those most important parts of the information 49 00:02:28,320 --> 00:02:32,160 Speaker 3: that is the challenge, and that's where AI can enable investors. 50 00:02:32,680 --> 00:02:37,919 Speaker 1: Okay, so all investors can benefit from it. Presumably, let's 51 00:02:37,960 --> 00:02:42,600 Speaker 1: start with market sentiment. How does AI track market sentiment 52 00:02:42,919 --> 00:02:44,720 Speaker 1: and how it should investors use it? 53 00:02:45,160 --> 00:02:47,320 Speaker 3: Well, back in the day, Sean, you might have scrolled 54 00:02:47,320 --> 00:02:50,519 Speaker 3: through a dozen charts each morning, trying four or five 55 00:02:50,600 --> 00:02:54,520 Speaker 3: different indicators to see which fitted best and potentially gave 56 00:02:54,600 --> 00:02:58,840 Speaker 3: you trading or investing signals. Now, with the Sentiment Analysis 57 00:02:58,880 --> 00:03:02,000 Speaker 3: tool on the moon Move platform, you can do that automatically. 58 00:03:02,120 --> 00:03:04,760 Speaker 3: You simply scroll down from whatever it is that you're 59 00:03:04,760 --> 00:03:07,760 Speaker 3: looking at, whether it's the overall market index or whether 60 00:03:07,800 --> 00:03:11,440 Speaker 3: it's an individual stock, and you'll see the results of 61 00:03:11,520 --> 00:03:17,760 Speaker 3: analysis on three different timeframes by fifteen different indicators instantaneously. 62 00:03:18,040 --> 00:03:22,119 Speaker 3: And that's what I mean about making investors faster and smarter. 63 00:03:23,040 --> 00:03:25,280 Speaker 3: Without having to go through all those charts. You can 64 00:03:25,320 --> 00:03:29,919 Speaker 3: see instantly what indications are coming from the fifteen underlying 65 00:03:30,760 --> 00:03:34,880 Speaker 3: technical indicators to quickly gauge what the charts are saying 66 00:03:34,960 --> 00:03:36,440 Speaker 3: about any particular stock. 67 00:03:36,880 --> 00:03:39,680 Speaker 1: Okay, and what you're talking about is just market sentiment 68 00:03:39,760 --> 00:03:42,640 Speaker 1: or is that across everything, across the sort of stock 69 00:03:42,640 --> 00:03:45,480 Speaker 1: price patterns, all sorts of things. What I'm trying to 70 00:03:45,480 --> 00:03:47,880 Speaker 1: get to is the underlying data. How many points of 71 00:03:47,960 --> 00:03:49,280 Speaker 1: data are there in the different things. 72 00:03:49,720 --> 00:03:54,880 Speaker 3: So the underlying indicators are analyzed on a five minute timeframe, 73 00:03:55,040 --> 00:03:58,520 Speaker 3: a one hour timeframe, and a one day timeframe, and 74 00:03:58,720 --> 00:04:02,240 Speaker 3: in each case there are fifteen underlying indicators, things that 75 00:04:02,280 --> 00:04:06,160 Speaker 3: we all know well like macd's and RSIs. So it 76 00:04:06,200 --> 00:04:09,080 Speaker 3: is a very quick way to do your technical analysis. 77 00:04:09,920 --> 00:04:13,720 Speaker 1: Okay, what about stock price patterns? So over the years, 78 00:04:14,080 --> 00:04:17,640 Speaker 1: I have tried really hard to look at price patterns 79 00:04:17,760 --> 00:04:20,599 Speaker 1: over time, and just as soon as I get it, 80 00:04:20,680 --> 00:04:24,040 Speaker 1: I know exactly what's going to happen. It goes somewhere 81 00:04:24,080 --> 00:04:27,160 Speaker 1: totally different to what I expected it to go. How 82 00:04:27,200 --> 00:04:29,040 Speaker 1: to use AI to help that? 83 00:04:29,440 --> 00:04:33,640 Speaker 3: Well, you're absolutely right, that's my experience in markets too. 84 00:04:33,680 --> 00:04:37,800 Speaker 3: Short markets often do the unexpected, and technical analysis is 85 00:04:37,880 --> 00:04:41,120 Speaker 3: never perfect. There's never a one hundred percent indication of 86 00:04:41,200 --> 00:04:44,680 Speaker 3: the future because the future is always uncertain in markets 87 00:04:44,680 --> 00:04:48,560 Speaker 3: and in life. So we're not changing the world here. 88 00:04:48,680 --> 00:04:51,599 Speaker 3: We're not reinventing anything and we haven't come up with 89 00:04:51,680 --> 00:04:55,240 Speaker 3: a magic wand what we have done is allowed people 90 00:04:55,320 --> 00:04:58,760 Speaker 3: to look at previous trading patterns that are similar to 91 00:04:58,839 --> 00:05:01,640 Speaker 3: the instrument they're looking at and look at how those 92 00:05:01,680 --> 00:05:05,080 Speaker 3: patterns played out. In other words, we're rewinding to find 93 00:05:05,080 --> 00:05:08,520 Speaker 3: patterns that match the pattern any investor might be looking at, 94 00:05:08,720 --> 00:05:11,600 Speaker 3: and when we find a match, we present those matches 95 00:05:12,320 --> 00:05:15,080 Speaker 3: to the investors so they can make decisions about what 96 00:05:15,200 --> 00:05:18,000 Speaker 3: the future path of the stock they're looking at might be. 97 00:05:18,560 --> 00:05:20,840 Speaker 1: Stay with me, Michael, we'll be back in a minute. 98 00:05:27,200 --> 00:05:31,360 Speaker 1: My guest this morning is Michael McCarthy from MUMU. Okay, 99 00:05:31,480 --> 00:05:34,599 Speaker 1: let's go to risk analysis and risk management. What types 100 00:05:34,640 --> 00:05:38,600 Speaker 1: of risks are we talking about that MUMU can help with. 101 00:05:38,920 --> 00:05:41,440 Speaker 3: Well, we're talking about market risk, that is the exposure 102 00:05:41,520 --> 00:05:44,039 Speaker 3: to the market, and so the risk management tools that 103 00:05:44,040 --> 00:05:47,200 Speaker 3: we have on the platform are largely built around the 104 00:05:48,040 --> 00:05:52,240 Speaker 3: key indicators and the key analysis of things other than 105 00:05:52,800 --> 00:05:55,920 Speaker 3: technical indicators. So for example, we look at short sale 106 00:05:55,920 --> 00:05:59,440 Speaker 3: analysis and then have a look at the overall impact 107 00:05:59,480 --> 00:06:03,719 Speaker 3: of shorts in a given stock and give an instantaneous reading. 108 00:06:03,760 --> 00:06:08,359 Speaker 3: So we combine AI with visual recognition to give you 109 00:06:08,520 --> 00:06:11,200 Speaker 3: instant analysis, and whether you're looking at the short sale 110 00:06:11,279 --> 00:06:15,359 Speaker 3: analysis tool, or the market position overview, or the trade overview, 111 00:06:15,560 --> 00:06:18,520 Speaker 3: the capital trend, whatever it is, we use the power 112 00:06:18,520 --> 00:06:23,080 Speaker 3: of algorithms to bring that information directly front and center 113 00:06:23,240 --> 00:06:24,880 Speaker 3: without you having to lift a finger. 114 00:06:25,440 --> 00:06:27,800 Speaker 1: Now, the one I think I like about data and 115 00:06:27,920 --> 00:06:30,200 Speaker 1: AI is the fact that it takes emotion out of 116 00:06:30,240 --> 00:06:32,600 Speaker 1: investing because once again, at one point there I had 117 00:06:32,640 --> 00:06:35,440 Speaker 1: a self managed super fund and as you know, much 118 00:06:35,440 --> 00:06:37,920 Speaker 1: as I wanted to not be emotional about it, there's 119 00:06:37,920 --> 00:06:40,360 Speaker 1: always some sort of assets I just really like that one, 120 00:06:40,440 --> 00:06:43,640 Speaker 1: and you become emotional about it. But presumably AI can 121 00:06:43,720 --> 00:06:44,599 Speaker 1: help you overcome that. 122 00:06:44,800 --> 00:06:48,000 Speaker 3: Oh, there are so many emotional traps in markets. Falling 123 00:06:48,040 --> 00:06:51,400 Speaker 3: in love with your position very common problem, you know, 124 00:06:51,560 --> 00:06:55,799 Speaker 3: unnecessary risk aversion is stopping you from taking advantage of opportunities. 125 00:06:56,120 --> 00:06:58,359 Speaker 3: There are many ways that our emotions can get in 126 00:06:58,400 --> 00:07:01,640 Speaker 3: the way of successful trading. Now, at the very professional 127 00:07:01,800 --> 00:07:05,400 Speaker 3: end that the extreme mend, cognitive psychologists recommend that traders 128 00:07:05,800 --> 00:07:09,160 Speaker 3: use their emotional responses to the market to gauge what's 129 00:07:09,200 --> 00:07:11,720 Speaker 3: going on. But for most of us, that's a far 130 00:07:11,800 --> 00:07:15,760 Speaker 3: too sophisticated approach, and the more we can be systematic 131 00:07:15,880 --> 00:07:18,440 Speaker 3: about what we're doing, the more we can set trading 132 00:07:18,480 --> 00:07:21,640 Speaker 3: rules and stick to those trading rules, the more likely 133 00:07:21,720 --> 00:07:24,200 Speaker 3: it is will have a better experience in the markets. 134 00:07:24,880 --> 00:07:27,280 Speaker 1: The way it works, so we have all this information, 135 00:07:27,600 --> 00:07:30,920 Speaker 1: is it about sort of getting alerts, triggering alerts from 136 00:07:31,080 --> 00:07:34,320 Speaker 1: MoMA's AI to an investor? Is that kind of how 137 00:07:34,360 --> 00:07:35,120 Speaker 1: it works broadly? 138 00:07:35,280 --> 00:07:39,440 Speaker 3: Well, Once again, AI makes it richer, deeper and faster 139 00:07:39,640 --> 00:07:42,840 Speaker 3: because most trading platforms have had for a while the 140 00:07:42,840 --> 00:07:46,160 Speaker 3: ability to set a price alert if this stock gets 141 00:07:46,200 --> 00:07:48,760 Speaker 3: to this price, send me a message, whether it's an 142 00:07:48,880 --> 00:07:53,040 Speaker 3: SMS or a text or a platform message. But this 143 00:07:53,160 --> 00:07:56,880 Speaker 3: generation of AI empowered market alerts means that you don't 144 00:07:56,920 --> 00:07:59,520 Speaker 3: have to focus on a stock or a price. You 145 00:07:59,560 --> 00:08:03,360 Speaker 3: can ask the alert for a soaring trade situation, that is, 146 00:08:03,400 --> 00:08:05,720 Speaker 3: a sudden jump in a price. You can look for 147 00:08:05,760 --> 00:08:09,440 Speaker 3: a diving trade alert and set the diving trade alert 148 00:08:09,480 --> 00:08:11,840 Speaker 3: across a range of instruments so that if any of 149 00:08:11,840 --> 00:08:15,600 Speaker 3: them do fall sharply, you'll know almost instantly. You can 150 00:08:15,600 --> 00:08:18,600 Speaker 3: set it to recognize patterns in candlesticks, and you can 151 00:08:18,600 --> 00:08:22,000 Speaker 3: set it to recognize other chart patterns like top reversals 152 00:08:22,240 --> 00:08:25,160 Speaker 3: or anything you can set an unusual activity alert. So 153 00:08:25,240 --> 00:08:28,400 Speaker 3: this is the next generation of market alerts. Not only 154 00:08:28,400 --> 00:08:30,640 Speaker 3: will it tell you about the stocks you're particularly looking at, 155 00:08:30,840 --> 00:08:33,719 Speaker 3: it could alert you to situations that might suit your 156 00:08:33,760 --> 00:08:35,120 Speaker 3: trading or investing style. 157 00:08:35,800 --> 00:08:39,440 Speaker 1: Okay, where are we heading with AI? Michael? Are we 158 00:08:39,600 --> 00:08:42,000 Speaker 1: there yet or do we have a long way to go? 159 00:08:42,520 --> 00:08:44,800 Speaker 2: The only constant in markets is changed. 160 00:08:45,160 --> 00:08:48,760 Speaker 3: So I would suggest that given how powerful this technology 161 00:08:48,840 --> 00:08:52,240 Speaker 3: is and the likelihood that it's going to improve the 162 00:08:52,320 --> 00:08:55,760 Speaker 3: investing experience for many many people, I'd say that they're 163 00:08:55,800 --> 00:08:59,040 Speaker 3: going to see more resources thrown into this sort of development. 164 00:08:59,160 --> 00:09:01,680 Speaker 3: As I said before, or the problem these days is 165 00:09:01,679 --> 00:09:04,720 Speaker 3: not getting the information. It's about knowing what's important, and 166 00:09:04,760 --> 00:09:08,440 Speaker 3: I suspect that factor will drive the future development of 167 00:09:08,520 --> 00:09:09,959 Speaker 3: technology for investors. 168 00:09:10,559 --> 00:09:12,400 Speaker 1: Okay, And at the end of the day, though, it's 169 00:09:12,400 --> 00:09:14,520 Speaker 1: an investor that has to make that decision. So what 170 00:09:14,960 --> 00:09:18,719 Speaker 1: you're doing at Murmur with AI is helping them to 171 00:09:19,000 --> 00:09:22,719 Speaker 1: receive and assimilate a lot of information. But at the 172 00:09:22,800 --> 00:09:24,600 Speaker 1: end of the day, it's investor that has to make 173 00:09:24,600 --> 00:09:26,680 Speaker 1: the call. I mean, they can set rules, etc. For 174 00:09:26,720 --> 00:09:30,560 Speaker 1: it to occur automatically, but it is an individual's decision. 175 00:09:31,160 --> 00:09:32,120 Speaker 2: One hundred percent. 176 00:09:32,520 --> 00:09:36,440 Speaker 3: The right investment decision is as much a function of 177 00:09:36,520 --> 00:09:40,679 Speaker 3: your own personal circumstances as it is of the market. Now, 178 00:09:40,720 --> 00:09:45,840 Speaker 3: as a provider, a responsible provider, we provide potential market opportunities, 179 00:09:45,840 --> 00:09:48,800 Speaker 3: but it's up to every investor to decide for themselves 180 00:09:48,840 --> 00:09:52,400 Speaker 3: whether or not that potential market opportunity suits their style, 181 00:09:52,440 --> 00:09:55,760 Speaker 3: whether it suits their investment goals, their risk appetype, the 182 00:09:55,840 --> 00:09:58,600 Speaker 3: things they're looking to achieve, the time frames they're working on, 183 00:09:58,760 --> 00:10:01,280 Speaker 3: and all of these different facts a very personal and 184 00:10:01,360 --> 00:10:06,040 Speaker 3: individual So yes, we'll give investors all the market information 185 00:10:06,120 --> 00:10:08,120 Speaker 3: we can, but they're the only ones who are in 186 00:10:08,160 --> 00:10:11,280 Speaker 3: a position to say, is this suitable to my personal situation? 187 00:10:11,800 --> 00:10:13,400 Speaker 1: Michael, thank you for talking to Fear and. 188 00:10:13,320 --> 00:10:15,560 Speaker 2: Greed A pleasure to Shawn. Thank you very much. 189 00:10:15,920 --> 00:10:18,720 Speaker 1: Now was Michael McCarthy from mumou, a great supporter of 190 00:10:18,720 --> 00:10:21,960 Speaker 1: this podcast. For more information on the AI tools that 191 00:10:22,000 --> 00:10:25,400 Speaker 1: are transforming trading on the mumou platform, follow the link 192 00:10:25,440 --> 00:10:28,000 Speaker 1: in today's show notes for this interview, And remember that 193 00:10:28,080 --> 00:10:31,080 Speaker 1: information in this podcast is general in nature, and you 194 00:10:31,080 --> 00:10:33,640 Speaker 1: should get professional advice and make sure a product is 195 00:10:33,760 --> 00:10:36,560 Speaker 1: right for you before proceeding. This is the Fear and 196 00:10:36,600 --> 00:10:38,920 Speaker 1: Greed Business Interview. Join us every morning for the full 197 00:10:38,920 --> 00:10:41,199 Speaker 1: episode of Fear and Greed to daily business news for 198 00:10:41,280 --> 00:10:44,439 Speaker 1: people who make their own decisions. I'm Sean Elmer. Enjoy 199 00:10:44,440 --> 00:10:44,760 Speaker 1: your day.