The moomoo app also offers a feature called Paper Portfolio, which is a “sandbox market” where investors can test ideas with a fictitious portfolio instead of their own money. The portfolio draws on real-time market and performance inputs.
“In the community, users can share their paper portfolios, and we see entire conversations, comments, and engagements around someone’s strategy,” says Rogan.
However, investors cannot share their actual real money portfolios. This is intended to stop what is known as mirror trading, in which one investor compares the stock transactions of another investor.
“This is not moomoo’s approach as we believe investing should be more personal – every trader has different goals, situations and risk tolerance and as such their investment approach should reflect that, not someone else’s trading behavior, needs and goals doing this might be very different,” says Rogan.
Investors can also conduct polls to gather the opinions of a variety of other investors in the moomoo community.
According to Rogan, a good example of how social trading can help investors make better decisions is stagflation — the unfavorable combination of rising inflation combined with a period of economic stagnation and rising unemployment.
“With signs in the global and national economy pointing to a period of possible stagflation, the idea was floated and discussed in the moomoo community, with the outcome of how best to prepare for stagflation should it occur” , he says.
“One strategy is to invest in renewable energy to offset the impact of higher oil prices.”
Stock market chat groups have come under scrutiny from regulators in Australia in recent years amid concerns that they are being used to inflate stock prices, known as “pumping and dumping”.
However, Rogan says this is not a risk at moomoo because the site has set standards for posts and general behavior, all posts go through three stages of review before publication, and every post is reviewed by a moomoo team member.
“Because the community is built into moomoo, the advantage of the moomoo community over Hot Copper or other investment discussions is that the features, and therefore the conversations, can be much richer,” says Rogan.
“In our other regions, we’ve also seen public companies join the community to engage in dialogue with investors. For example, we have had companies present their earnings reports via live streams from members of the community.”
None of the social investing features and AI tools offered by moomoo negate the need for investors to do their own research and make their own decisions.
“But as one of the inputs to an investor’s investment decision, the community can be a fantastic resource,” says Rogan.
It helps investors discover more strategies and more companies they may not have considered, which not only helps improve their stock trading skills but may also help them diversify their portfolio.
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In Australia, investment services in moomoo are provided by Futu Securities (Australia) Ltd (AFSL 224663), regulated by ASIC.
https://www.smh.com.au/business/banking-and-finance/how-social-investing-is-changing-the-way-australians-trade-20220705-p5azcy.html?ref=rss&utm_medium=rss&utm_source=rss_business How social investment is changing the way Australians trade