Unlocking Investment Success: Mastering Stock Trading with AI-Driven Insights

Good evening, everyone!

I’m really happy to meet you all here at Diamond Ridge Financial Academy!

Are you ready to dive into the world of investing, packed with both opportunities and challenges?

Let’s start this exciting journey together and kick off a new chapter of wealth building!

In our last class, we went over the main types of global investments and the basics of how to make money from investing.

In real life, we earn profits by buying and selling based on price movements. But these prices are affected by a lot of things, like company fundamentals, market sentiment, trends, policy changes and more.

Because there are so many factors, over 80% of investors face ongoing losses.

That’s why Diamond Ridge Asset Management developed its Quantitative Trading System. This system uses math models and algorithms to turn complex investment decisions into clear indicators and automates trading based on those indicators, helping investors make more rational choices by minimizing emotional influence.

To help more investors experience the benefits of quantitative trading, we’re offering this free online investment course and inviting everyone to join the Jan beta test of our AI 5.0 Quantitative Trading System.

In this course, we’ll dig into how our quantitative trading system works, showing how it can improve investment efficiency and bring more stable profits. We’ll also go over the strategies for major investment types, including stocks, crypto and forex.

For example, the stock market may seem complex, but once you understand the basics of fundamentals and technical analysis, and pair that knowledge with good strategies, you can turn losses into gains.

We’ll talk about how to analyze a company’s business, finances and industry outlook, plus how to read stock price trends, volume and technical indicators to make smarter decisions.

We’ll also provide real-time trading insights, like market trends and policy updates to help you seize opportunities and build practical experience. Plus, we’ll share useful investing tips, like managing risk and using leverage to increase returns, so you can grow your profits as you learn.

We believe that through this course, you’ll gain a deeper understanding of the investment market, pick up professional skills and ultimately see steady growth in your wealth.

Here’s a breakdown of today’s stock market, using it as an example for analysis.

News about Scott Bessent, a Wall Street veteran, being appointed Treasury Secretary by the incoming Trump administration has had an impact. U.S. Treasury yields have dipped, while stock futures are up.

The FTSE 100 Index, boosted by the U.S. stock market climbed steadily in the final minutes, closing near today’s high at 8,291.

With the Trump economy kicking in and expectations of a rate cut by the Bank of England, both U.S. and U.K. markets are likely to stay strong.

Most investors make money by trading individual stocks, so our focus will be on trading specific stocks.

For example, in the S&P index, Super Micro Computer Inc. saw the biggest gains with its stock price surging over 17% during trading, followed by vaccine maker Moderna Inc. If you followed our advice and bought Super Micro, you could be up over 30% in the past three days.

But how do you actually make big returns on individual stocks?

First, know that stock investing isn’t about mindlessly chasing highs or selling at lows, it’s about deep analysis and a smart strategy.

Here’s a simple breakdown:

1. Fundamental Analysis: Understand the company’s performance, finances and industry outlook to gauge its potential.

Look at metrics like profitability, cash flow, debt levels and competitive edge.

Take Super Micro, for instance. Though its stock price dropped sharply this year, the company’s growth has been solid, creating a great buying opportunity. According to Professor Hanover, when Super Micro’s stock fell below $20, it was a prime buying zone.

The company’s earnings have doubled year-over-year, while the stock is down over 50%, a clear sign it’s undervalued and has room to grow.

On top of that, the AI 4.0 trading system gave buy signals, adding more confidence to our decision.

2. Technical Analysis: Look at stock trends, trading volume and indicators to gauge short-term moves.

Use tools like moving averages, BOLL, MACD, RSI, etc., to decide on buy/sell moments.

One of the easiest and most reliable indicators is the 21-day moving average. When a stock breaks above the 21-day moving average, it’s a bullish signal, time to consider buying. When it dips below, it’s bearish, time to think about selling. However, don’t rely solely on the 21-day moving average, combine it with other indicators and fundamentals and ideally, get signals from an AI 4.0 trading system for the best decisions.

3. Market Sentiment: Gauge the market's vibe or how people feel about a particular stock.

Track news reports, social media discussions, etc., to understand the market’s mood toward it.

For example, BTC and crypto have been on a tear lately, partly fueled by news on Trump’s economic impact. As a result, related tech stocks are on a roll. Stocks like MicroStrategy (MSTR), Marathon Digital (MARA), Tesla (TSLA), Hut 8 Mining Corp (HUT), and Cipher Mining (CIFR) have all seen gains thanks to BTC’s rally.

Finally, look at stocks like Astera Labs (ALAB), as we mentioned in this morning’s strategy briefing.

This company, a leader in cloud and AI infrastructure semiconductor solutions, recently posted strong Q3 results and optimistic guidance, sending its stock price up. We’re projecting more growth in Q4, showing that Astera has huge potential in the cloud and AI space. If you followed our morning tip to buy, you could’ve made a 5% gain in one day.

Let’s take Astera Labs (ALAB) as an example for technical analysis.

As shown in the chart, ALAB’s daily candlestick chart had a downtrend up until Sept 11. After that, the price stabilized and the 21-day moving average (MA) leveled out. When the candlestick broke above the 21-day MA on Sept 11, the price started to climb along this line. The 21-day MA then acted as a trendline and support line. So, we can use it as a reference if the price is below the 21-day MA, it's in a downtrend, suggesting a selling opportunity, above it, it's in an uptrend meaning it’s a buying opportunity. In actual trading, when the 21-day MA is trending up, any pullback to this line can be a good buying opportunity (as seen in charts 2 and 3).

Based on the analysis above, we can make predictions about a stock’s future direction and create investment strategies accordingly. For example, we can look for companies with high growth potential, like those in the tech or healthcare industries, as these tend to have strong profit growth potential. Especially promising are tech stocks tied to trends in the Fourth Industrial Revolution, such as AI and digital assets. At the same time, we can also look at stocks that are undervalued by the market. These stocks might be overlooked right now but could have a lot of upside potential in the future.

It's important to note that, many technical analysis methods are universal. For example, the 21-day moving average strategy isn't just for analyzing stock trends, it also works really well for crypto and forex markets. In other words, by analyzing and summarizing the investment patterns of these main asset types, and then combining the strengths of these strategies, we can create the best investment mix. Especially our chief analyst, Hanover, whose 'Asset Arbitrage Theory' makes the most of the strengths of different assets to generate stable profits.

Next, I’ll break down the quantitative trading system's model and explain the specific buy and sell signals of the 21-day moving average. This will help you pinpoint the right entry and exit points for bigger profits.

That’s it for tonight’s session!

If you have any questions about stocks, crypto, forex or other investments, just ask.

I’ll use the quantitative trading system's tools, along with real-time market data to provide you with live trading guidance.

If you don’t have an investment account yet, make sure to open one and start growing your wealth.

In the next class, we’ll dive into picking high-growth stocks. Stay tuned!

If you have any questions, feel free to reach out anytime!