Diamond Ridge Financial Academy: Master AI-Powered Investing and High-Growth Stock Selection

Good evening, everyone!

I’m thrilled to be here tonight to talk about investing, especially how to spot high-growth, quality stocks. We’ll explore strategies and leverage signals from the Quantitative Trading System 4.0 to make precise trades. Let’s learn together and uncover the secrets to investment success in Diamond Ridge Financial Academy’s online course!

Last night, we studied the key traits of high-growth stocks and summarized the patterns these quality companies tend to follow.  

We discovered that companies with real growth potential often align with trends from the ongoing tech revolution.

Fields like AI, digital assets, cloud computing, and biotech are full of opportunities and offer companies new chances to grow.  

The tech revolution is like a global wave, reshaping how we live and creating unprecedented opportunities for investors. Companies that can ride this trend and turn it into a business advantage often outshine their competitors and achieve rapid growth.

For example, the Quantitative Trading System jointly developed by Diamond Ridge Asset Management and Vanguard Capital takes full advantage of the tech revolution in AI. This is why it can predict markets so accurately. The System 4.0 combines cutting-edge AI technology to better analyze market data, spot opportunities and craft effective strategies.  

Diamond Ridge Financial Academy’s courses aim to help everyone understand and use this system to capitalize on tech-driven investment opportunities. We’re also excited to invite you to test the upcoming Trading System 5.0 in Jan 2025. As AI continues to evolve, the accuracy of these systems will keep improving, helping us seize more opportunities and achieve higher returns.

Tonight, we’ll dive into the strategies behind the Quantitative Trading System and break down its core technology. By learning these methods, you’ll not only be able to profit but also understand why this system has such a high success rate.  

We’ll go step by step, especially focusing on how the system analyzes stocks or assets to pinpoint the best entry and exit points.  

Before we begin, let’s take a quick look at today’s market and the latest updates.

As expected, the UK stock market traded sideways today. We’ve discussed before that the FTSE 100 reflects the overall state of the UK economy and market sentiment. It’s like a mirror, showing the performance of UK businesses and shaping investor confidence. Recently, the FTSE 100 has struggled to break higher, and as a result, many UK stocks saw some pullbacks today.

Recently, the FTSE 100’s movement has been influenced by the key factors:  

Firstly, external factors like economic conflicts and wars.  

Since the COVID-19 pandemic in 2020, countries have used trade wars and geopolitical conflicts to shift focus from their internal economic problems. These events often negatively affect the global economy, which then impacts the UK stock market.  

For example, on Monday evening, news about a ceasefire between Israel and Hezbollah eased tensions in the Middle East, boosting US and UK stock markets. On the other hand, on Tuesday, US President-elect Donald Trump threatened tariffs on Mexico, Canada and China through social media, causing market pressure. Global economic events like these directly influence market fluctuations and are critical when making decisions about stocks, crypto and forex trades.

Secondly, internal factors like the economy and monetary policies.

The UK’s economy heavily relies on the service sector, with industries like finance, insurance and real estate making up a large share. In recent years, the UK’s economic growth has been slow, and inflation has stayed high. To boost growth, the Bank of England has maintained an easy monetary policy with record-low interest rates.  

However, such policies come with risks, like worsening inflation or creating asset bubbles. The Bank of England must balance stimulating growth and keeping inflation in check.

According to recent data, UK CPI growth has dropped from its 2022 peak of 11% to levels near the Bank of England’s target. In June 2024, the UK’s CPI rose 2% year over year, and core CPI rose 3.5%  year over year. This shows inflation is gradually returning to target but still has risks of rebounding. Lower energy inflation has played a big role in reducing overall inflation, and easing cost pressures have also helped slow non-energy goods inflation.

Let’s talk about monetary policy next. In Nov 2024, the Bank of England (BoE) lowered its base rate by 25 basis points to 4.75%. This was the second rate cut in four years, following the start of its easing cycle in Aug. The decision reflects the reality of slower economic growth in the UK. In Sept, inflation dropped to a three-year low of 1.7%, while service sector inflation which indicates core price growth, fell to a two-year low of 4.9%, though it’s still relatively high.

The BoE expects core inflation to keep slowing over the medium term but the Labour Party’s expansionary budget is forecasted to push inflation up by 0.5 percentage points at its peak. The BoE now estimates year-end inflation at 2.5% for 2024 and 2.2% for 2026. The budget is also expected to boost GDP by 0.75% within a year. While inflation is coming down, the BoE remains cautious about the economic outlook and aims to stimulate growth with these rate cuts. Changes in BoE policy directly impact the FTSE 100, because they affect market liquidity and investors’ expectations for the economy.

Looking ahead, the future of the UK and the global economy lies in the digital era driven by technological revolutions.  

History shows that only technological revolutions effectively pull economies out of trouble. Past wars and financial crises have severely hurt global economies but each time, a new wave of technological innovation has reignited growth and led to recovery.  

For example, the Industrial Revolution in the 18th century brought breakthroughs like steam engines and electricity, which boosted production efficiency and sped up economic growth. The 20th century’s computer revolution gave rise to information technology, spawning the internet and mobile industries which injected fresh energy into global growth.

Now, technologies like artificial intelligence (AI) and the digital economy are rapidly growing, offering new engines for economic growth. AI can boost efficiency, cut costs and improve service quality, while the digital economy creates new business models and expands market opportunities.  

Therefore, this makes AI and the digital economy the top investment trends today. We need to focus on these sectors, find companies with strong growth potential and seize the opportunities brought by this tech revolution. That’s why, in recent years, our chief analyst, Hanover and the team have strongly recommended frontier assets like Nvidia and Bitcoin, which are leading the way in this revolution.

Lastly, let’s look at market sentiment and price trends.  

Market sentiment is like an invisible force that drives investor behavior and shapes stock market trends. When investors are confident about the future, sentiment is optimistic and markets rise. But when there’s doubt or worry, sentiment becomes negative and markets can fall.  

Recently, the UK stock market has been influenced by global economic slowdowns and rising inflation, leading to cautious sentiment. Investors are split on the outlook and this uncertainty has caused increased market volatility.

Price trends are super important for the stock market. When prices keep going up, more people start buying, which pushes the market higher. But if prices keep falling, investors often sell, which makes the market drop even more.  

Let’s look at the FTSE 100 as an example. The index found support around 8000 points and bounced back to around 8300 points, where it’s now facing resistance. This movement lines up perfectly with the signals from our quant system. In this kind of situation, we should focus on tech stocks that are still at low prices. For example, yesterday we talked about Rolls-Royce, a company that leads in both manufacturing and high-tech industries. There are also other short-term stocks to watch but they depend on the latest market moves. If you want specific trade suggestions, reach out to the assistant for help.

At this point, some of you might feel that investing is super complicated. Others might start to understand why only a small group of people consistently make money in the market.  For most beginner investors, you don’t need to get too deep into all these analysis methods. Just focus on learning the basics and understanding the key ideas.  

Leave the detailed work to the experts. Our team can handle the in-depth market analysis and create strategies to help you earn steady profits. All you need is a basic understanding of investing, know the reasoning behind our approach and follow our guidance to see results.  

You can also take advantage of Diamond Ridge Asset Management's quant trading system. With cutting-edge AI tools, it’s designed to help you achieve consistent returns with ease.

For example in trading systems, most analysts rely on moving averages, which are also widely used by financial institutions. Today, I’ll teach you about the 21-day moving average method. It’s one of the simplest and most effective ways to analyze prices in the market right now.  

Let’s dive into this method together. You’ll get a better understanding of how the quantitative system works, while also learning how to spot patterns in high-growth stocks.

The 21-day moving average (21 MA) is the average price over the last 21 trading days. It’s often used to track price trends.  

When the price goes above the 21 MA, it’s usually a bullish signal, meaning the trend might go up.  

If the price drops below the 21 MA, it’s seen as bearish, meaning the trend might go down.  

Look at the chart above. It shows a strong stock boosted by the crypto trend, which is part of our portfolio.  

You can see that when the price falls below the 21 MA (points 1 and 2), the market turns bearish.  

When it breaks above the 21 MA (point 3), the trend turns bullish. After that, every time the price touches the 21 MA, it’s a chance to buy (point 4).

For example in the morning, we analyzed and predicted Eth's movement, as shown in the chart above. We can see that the price is moving up along the 21-day moving average. When the price pulls back to the 21 MA, it’s a great time to buy. Using the 21 MA analysis, we successfully predicted Eth's big rise. If any of the students followed the trade and bought at $3400, they would have already made over 5% in profit.

So, while investing might seem complex, once you understand these key patterns, it’s easy to make a profit.

That’s all for tonight’s share!  

If you have any questions about stocks, crypto, forex or any other investments, feel free to reach out to me.

I’ll be providing real-time trading guidance based on the current market.  

Also, make sure your investment accounts are ready so we can learn and earn in real-time together.  

In the next class, I’ll share the specific buy and sell signals using the 21 MA. Stay tuned!  

If you have any questions, don’t hesitate to contact me anytime!