Welcome to the Fear and Greed business Interview. I'm Sean Almer. Fear and Greed is working with the team at trading platform at Moomoo on a series for investors. Every Friday, we'll bring you an episode exploring how to use technology and data for smarter investing. Today, it's all about AI, artificial intelligence. Just as AI is transforming so many industries, it's also changing investing with a range of tools available for market insights, including risk analysis and tracking stock price patterns. But the key is knowing how to use the AI trading tools to make better investing decisions. The information in this episode is general in nature and it doesn't take into account your own circumstances. Michael McCarthy is the chief commercial Officer and market strategist at trading platform Mumu, which is a great supporter of this podcast. Michael, Welcome to Fear and Greed.

Welcome to the Fear and Greed business Interview. I'm Sean Almer. Fear and Greed is working with the team at trading platform at Moomoo on a series for investors. Every Friday, we'll bring you an episode exploring how to use technology and data for smarter investing. Today, it's all about AI, artificial intelligence. Just as AI is transforming so many industries, it's also changing investing with a range of tools available for market insights, including risk analysis and tracking stock price patterns. But the key is knowing how to use the AI trading tools to make better investing decisions. The information in this episode is general in nature and it doesn't take into account your own circumstances. Michael McCarthy is the chief commercial Officer and market strategist at trading platform Mumu, which is a great supporter of this podcast. Michael, Welcome to Fear and Greed.

Thanks very much, Sean, it's great to be here.

Thanks very much, Sean, it's great to be here.

Did you ever think we'd be talking about AI in investing when you started off in your career.

Did you ever think we'd be talking about AI in investing when you started off in your career.

Well, I've got a long history of attempting to use computer power in markets. In the nineties, I was a trader with one of the large global investment houses, and for two years my brief was to examine black boxes what we used to call algorithmic trading. So yeah, I've been involved in this for a very long time.

Well, I've got a long history of attempting to use computer power in markets. In the nineties, I was a trader with one of the large global investment houses, and for two years my brief was to examine black boxes what we used to call algorithmic trading. So yeah, I've been involved in this for a very long time.

Sean.

Sean.

I am impressed with the power of the latest generation of AI tools, where I have gone more than one step ahead in the last couple of years when it comes to employing the power of computers to make the investing job smarter and faster.

I am impressed with the power of the latest generation of AI tools, where I have gone more than one step ahead in the last couple of years when it comes to employing the power of computers to make the investing job smarter and faster.

Okay, you mentioned the black box, and we used to talk about the black box. Maybe not so much nowadays, but at its core is the main benefit of AI to simplify the extraordinary amount of data that's available.

Okay, you mentioned the black box, and we used to talk about the black box. Maybe not so much nowadays, but at its core is the main benefit of AI to simplify the extraordinary amount of data that's available.

That's exactly what it is, Sean.

That's exactly what it is, Sean.

You know, a lot of people of my vintage are concerned that AI enabled robots will one day take over the world and enslave humanity. There are plenty of people worried about the look for their job given the advent of the latest iteration of AI. But the reality of AI is quite different. Machines are not going to take over the world, not yet anyway. But the reality is AI harnesses the power of computing to bring us in the terms of the market the information we need. The thing about at the moment, Sean, is that nobody is short of information about the markets.

You know, a lot of people of my vintage are concerned that AI enabled robots will one day take over the world and enslave humanity. There are plenty of people worried about the look for their job given the advent of the latest iteration of AI. But the reality of AI is quite different. Machines are not going to take over the world, not yet anyway. But the reality is AI harnesses the power of computing to bring us in the terms of the market the information we need. The thing about at the moment, Sean, is that nobody is short of information about the markets.

It's knowing what's important.

It's knowing what's important.

Getting straight to those most important parts of the information that is the challenge, and that's where AI can enable investors.

Getting straight to those most important parts of the information that is the challenge, and that's where AI can enable investors.

Okay, so all investors can benefit from it. Presumably, let's start with market sentiment. How does AI track market sentiment and how it should investors use it?

Okay, so all investors can benefit from it. Presumably, let's start with market sentiment. How does AI track market sentiment and how it should investors use it?

Well, back in the day, Sean, you might have scrolled through a dozen charts each morning, trying four or five different indicators to see which fitted best and potentially gave you trading or investing signals. Now, with the Sentiment Analysis tool on the moon Move platform, you can do that automatically. You simply scroll down from whatever it is that you're looking at, whether it's the overall market index or whether it's an individual stock, and you'll see the results of analysis on three different timeframes by fifteen different indicators instantaneously. And that's what I mean about making investors faster and smarter. Without having to go through all those charts. You can see instantly what indications are coming from the fifteen underlying technical indicators to quickly gauge what the charts are saying about any particular stock.

Well, back in the day, Sean, you might have scrolled through a dozen charts each morning, trying four or five different indicators to see which fitted best and potentially gave you trading or investing signals. Now, with the Sentiment Analysis tool on the moon Move platform, you can do that automatically. You simply scroll down from whatever it is that you're looking at, whether it's the overall market index or whether it's an individual stock, and you'll see the results of analysis on three different timeframes by fifteen different indicators instantaneously. And that's what I mean about making investors faster and smarter. Without having to go through all those charts. You can see instantly what indications are coming from the fifteen underlying technical indicators to quickly gauge what the charts are saying about any particular stock.

Okay, and what you're talking about is just market sentiment or is that across everything, across the sort of stock price patterns, all sorts of things. What I'm trying to get to is the underlying data. How many points of data are there in the different things.

Okay, and what you're talking about is just market sentiment or is that across everything, across the sort of stock price patterns, all sorts of things. What I'm trying to get to is the underlying data. How many points of data are there in the different things.

So the underlying indicators are analyzed on a five minute timeframe, a one hour timeframe, and a one day timeframe, and in each case there are fifteen underlying indicators, things that we all know well like macd's and RSIs. So it is a very quick way to do your technical analysis.

So the underlying indicators are analyzed on a five minute timeframe, a one hour timeframe, and a one day timeframe, and in each case there are fifteen underlying indicators, things that we all know well like macd's and RSIs. So it is a very quick way to do your technical analysis.

Okay, what about stock price patterns? So over the years, I have tried really hard to look at price patterns over time, and just as soon as I get it, I know exactly what's going to happen. It goes somewhere totally different to what I expected it to go. How to use AI to help that?

Okay, what about stock price patterns? So over the years, I have tried really hard to look at price patterns over time, and just as soon as I get it, I know exactly what's going to happen. It goes somewhere totally different to what I expected it to go. How to use AI to help that?

Well, you're absolutely right, that's my experience in markets too. Short markets often do the unexpected, and technical analysis is never perfect. There's never a one hundred percent indication of the future because the future is always uncertain in markets and in life. So we're not changing the world here. We're not reinventing anything and we haven't come up with a magic wand what we have done is allowed people to look at previous trading patterns that are similar to the instrument they're looking at and look at how those patterns played out. In other words, we're rewinding to find patterns that match the pattern any investor might be looking at, and when we find a match, we present those matches to the investors so they can make decisions about what the future path of the stock they're looking at might be.

Well, you're absolutely right, that's my experience in markets too. Short markets often do the unexpected, and technical analysis is never perfect. There's never a one hundred percent indication of the future because the future is always uncertain in markets and in life. So we're not changing the world here. We're not reinventing anything and we haven't come up with a magic wand what we have done is allowed people to look at previous trading patterns that are similar to the instrument they're looking at and look at how those patterns played out. In other words, we're rewinding to find patterns that match the pattern any investor might be looking at, and when we find a match, we present those matches to the investors so they can make decisions about what the future path of the stock they're looking at might be.

Stay with me, Michael, we'll be back in a minute. My guest this morning is Michael McCarthy from MUMU. Okay, let's go to risk analysis and risk management. What types of risks are we talking about that MUMU can help with.

Stay with me, Michael, we'll be back in a minute. My guest this morning is Michael McCarthy from MUMU. Okay, let's go to risk analysis and risk management. What types of risks are we talking about that MUMU can help with.

Well, we're talking about market risk, that is the exposure to the market, and so the risk management tools that we have on the platform are largely built around the key indicators and the key analysis of things other than technical indicators. So for example, we look at short sale analysis and then have a look at the overall impact of shorts in a given stock and give an instantaneous reading. So we combine AI with visual recognition to give you instant analysis, and whether you're looking at the short sale analysis tool, or the market position overview, or the trade overview, the capital trend, whatever it is, we use the power of algorithms to bring that information directly front and center without you having to lift a finger.

Well, we're talking about market risk, that is the exposure to the market, and so the risk management tools that we have on the platform are largely built around the key indicators and the key analysis of things other than technical indicators. So for example, we look at short sale analysis and then have a look at the overall impact of shorts in a given stock and give an instantaneous reading. So we combine AI with visual recognition to give you instant analysis, and whether you're looking at the short sale analysis tool, or the market position overview, or the trade overview, the capital trend, whatever it is, we use the power of algorithms to bring that information directly front and center without you having to lift a finger.

Now, the one I think I like about data and AI is the fact that it takes emotion out of investing because once again, at one point there I had a self managed super fun and as you know, much as I wanted to not be emotional about it, there's always some sort of assets I just really like that one, and you become emotional about it. But presumably AI can help you overcome that.

Now, the one I think I like about data and AI is the fact that it takes emotion out of investing because once again, at one point there I had a self managed super fun and as you know, much as I wanted to not be emotional about it, there's always some sort of assets I just really like that one, and you become emotional about it. But presumably AI can help you overcome that.

Oh, there are so many emotional traps in markets. Falling in love with your position very common problem, you know, unnecessary risk aversion is stopping you from taking advantage of opportunities. There are many ways that our emotions can get in the way of successful trading. Now, at the very professional end that the extreme mend, cognitive psychologists recommend that traders use their emotional responses to the market to gauge what's going on. But for most of us, that's a far too sophisticated approach, and the more we can be systematic about what we're doing, the more we can set trading rules and stick to those trading rules, the more likely it is will have a better experience in the markets.

Oh, there are so many emotional traps in markets. Falling in love with your position very common problem, you know, unnecessary risk aversion is stopping you from taking advantage of opportunities. There are many ways that our emotions can get in the way of successful trading. Now, at the very professional end that the extreme mend, cognitive psychologists recommend that traders use their emotional responses to the market to gauge what's going on. But for most of us, that's a far too sophisticated approach, and the more we can be systematic about what we're doing, the more we can set trading rules and stick to those trading rules, the more likely it is will have a better experience in the markets.

The way it works, so we have all this information, is it about sort of getting alerts, triggering alerts from MoMA's AI to an investor? Is that kind of how it works broadly?

The way it works, so we have all this information, is it about sort of getting alerts, triggering alerts from MoMA's AI to an investor? Is that kind of how it works broadly?

Well, Once again, AI makes it richer, deeper and faster because most trading platforms have had for a while the ability to set a price alert if this stock gets to this price, send me a message, whether it's an SMS or a text or a platform message. But this generation of AI empowered market alerts means that you don't have to focus on a stock or a price. You can ask the alert for a soaring trade situation, that is, a sudden jump in a price. You can look for a diving trade alert and set the diving trade alert across a range of instruments so that if any of them do fall sharply, you'll know almost instantly. You can set it to recognize patterns in candlesticks, and you can set it to recognize other chart patterns like top reversals or anything you can set an unusual activity alert. So this is the next generation of market alerts. Not only will it tell you about the stocks you're particularly looking at, it could alert you to situations that might suit your trading or investing style.

Well, Once again, AI makes it richer, deeper and faster because most trading platforms have had for a while the ability to set a price alert if this stock gets to this price, send me a message, whether it's an SMS or a text or a platform message. But this generation of AI empowered market alerts means that you don't have to focus on a stock or a price. You can ask the alert for a soaring trade situation, that is, a sudden jump in a price. You can look for a diving trade alert and set the diving trade alert across a range of instruments so that if any of them do fall sharply, you'll know almost instantly. You can set it to recognize patterns in candlesticks, and you can set it to recognize other chart patterns like top reversals or anything you can set an unusual activity alert. So this is the next generation of market alerts. Not only will it tell you about the stocks you're particularly looking at, it could alert you to situations that might suit your trading or investing style.

Okay, where are we heading with AI? Michael? Are we there yet or do we have a long way to go?

Okay, where are we heading with AI? Michael? Are we there yet or do we have a long way to go?

The only constant in markets is changed.

The only constant in markets is changed.

So I would suggest that given how powerful this technology is and the likelihood that it's going to improve the investing experience for many many people, I'd say that they're going to see more resources thrown into this sort of development. As I said before, or the problem these days is not getting the information. It's about knowing what's important, and I suspect that factor will drive the future development of technology for investors.

So I would suggest that given how powerful this technology is and the likelihood that it's going to improve the investing experience for many many people, I'd say that they're going to see more resources thrown into this sort of development. As I said before, or the problem these days is not getting the information. It's about knowing what's important, and I suspect that factor will drive the future development of technology for investors.

Okay, And at the end of the day, though, it's an investor that has to make that decision. So what you're doing at Murmur with AI is helping them to receive and assimilate a lot of information. But at the end of the day, it's investor that has to make the call. I mean, they can set rules, etc. For it to occur automatically, but it is an individual's decision.

Okay, And at the end of the day, though, it's an investor that has to make that decision. So what you're doing at Murmur with AI is helping them to receive and assimilate a lot of information. But at the end of the day, it's investor that has to make the call. I mean, they can set rules, etc. For it to occur automatically, but it is an individual's decision.

One hundred percent.

One hundred percent.

The right investment decision is as much a function of your own personal circumstances as it is of the market. Now, as a provider, a responsible provider, we provide potential market opportunities, but it's up to every investor to decide for themselves whether or not that potential market opportunity suits their style, whether it suits their investment goals, their risk appetype, the things they're looking to achieve, the time frames they're working on, and all of these different facts a very personal and individual So yes, we'll give investors all the market information we can, but they're the only ones who are in a position to say, is this suitable to my personal situation?

The right investment decision is as much a function of your own personal circumstances as it is of the market. Now, as a provider, a responsible provider, we provide potential market opportunities, but it's up to every investor to decide for themselves whether or not that potential market opportunity suits their style, whether it suits their investment goals, their risk appetype, the things they're looking to achieve, the time frames they're working on, and all of these different facts a very personal and individual So yes, we'll give investors all the market information we can, but they're the only ones who are in a position to say, is this suitable to my personal situation?

Michael, thank you for talking to Fear and.

Michael, thank you for talking to Fear and.

Greed A pleasure to Shawn. Thank you very much.

Greed A pleasure to Shawn. Thank you very much.

Now was Michael McCarthy from mumu a great supporter of this podcast. For more information on the AI tools that are transforming trading on the mumou platform, follow the link in today's show notes for this interview, And remember that information in this podcast is general in nature, and you should get professional advice and make sure a product is right for you before proceeding. This is the Fear and Greed Business Interview. Join us every morning for the full episode of Fear and Greed to daily business news for people who make their own decisions. I'm Sean Elmer. Enjoy your day.

Now was Michael McCarthy from mumu a great supporter of this podcast. For more information on the AI tools that are transforming trading on the mumou platform, follow the link in today's show notes for this interview, And remember that information in this podcast is general in nature, and you should get professional advice and make sure a product is right for you before proceeding. This is the Fear and Greed Business Interview. Join us every morning for the full episode of Fear and Greed to daily business news for people who make their own decisions. I'm Sean Elmer. Enjoy your day.