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Patience pays: Get to Know Popular Investor Reinhardt Coetzee

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Ask any trader and they’ll tell you: diversifying your portfolio is one of the best ways to reduce risk. If you’re curious about branching out to other assets, definitely check out Reinhardt Coetzee — this South African Popular Investor is proof that low-risk, long-term investing can really pay off!

Since joining eToro in July 2016, Reinhardt has kept his risk score low by focusing on stocks from well-known yet innovative companies which according to his own research have solid growth potential, and holding assets for an average of 6 months.

Read more about Reinhardt’s investment s1trategy and see his trading activity here:

View Reinhardt’s profile
This is not investment advice. Past performance is not an indication of future results. Your capital is at risk.

Hi, Reinhardt! Thanks for chatting with us today. Can you tell us a bit about yourself?

I’m 35 years old and live in Johannesburg, South Africa. I work in the industrial automation industry and specialise in the fields of software engineering, business intelligence & data analytics. Investing is an avocational passion of mine. I’m a technology enthusiast — or nerd for short — and I love playing around with and following the latest technological trends that are changing the way we live.

Did you have previous experience with financial investments before joining eToro?

I’ve been investing in equity funds like unit trusts and ETF’s ever since I started my first ‘real’ job and could afford to put some money away. Being a bit of an obsessive when it comes to investing my money, I would research how a particular fund was performing over time and look into things like the underlying asset allocation and detailed stats. Did I mention I’m into analytics? I soon started share trading online, investing in stocks directly and building my own portfolio and have become further involved in the world of investing ever since. I joined eToro in mid-2016 and quickly climbed the ranks to reach Elite Popular Investor status.

Why did you choose to join eToro?

I was looking online for an affordable and accessible way to get more direct exposure to US stocks. Trading international markets using traditional investment brokers can be complicated, non-transparent, and expensive. eToro just made it easy and accessible. I immediately loved using the platform, as it’s very easy to use. The interface design and user experience are great and then there is the whole social aspect to it — having the ability to interact with, and see what other traders all over the world are investing in, is quite amazing.

What are the three key benefits of using eToro?

There are many, and I think it will differ from person to person depending on their trading strategy. For me, the three key benefits have been:

1. Easy and simple-to-use platform with full transparency and statistics. I love stats.

2. Social interaction with a like-minded community of traders and investors — the power of the crowd.

3. Friendly and professional communication. When it comes to support issues and how those are communicated, or speaking with an account manager, I’ve only seen and had good experiences.

That last one might be more of a company culture thing rather than a feature of the platform, but for me, trust in the company you use to invest your money is just as important.

How has eToro changed the way you trade?

Having the ability to trade stock CFD’s, and more recently, directly in the underlying asset, while still being able to trade shares with fractional ownership means I can build out a well-positioned, diversified portfolio. This market-maker model eToro uses, allows me to continually reinvest in my portfolio, adding to existing positions and taking advantage of good buying opportunities such as during market dips.

What is your type of trading strategy and what is it focused on?

My portfolio is focused on maximum long-term growth. I’m not a day trader. I do a lot of research and reading up on each of the companies in which I invest, fundamental analysis, studying earnings reports etc. I’m also big on thematic investing — researching the technology themes, like AI, shaping our future and what that might look like in the next 5, 10 or 20 years and invest in the companies that stand to benefit the most. You also have to have a benchmark. I invest mainly in tech stocks so I use the Nasdaq100 index (NSDQ100) which historically has been one of the best-performing industry indices over any long-term period, which gives me and my copiers a good benchmark against which to compare my performance.

What are the benefits of being a Popular Investor and what is your long-term goal?

There is obviously the monetary reward for being a Popular Investor, receiving a percentage of my assets under management, which is a great incentive from eToro to be part of the program. Being a Popular Investor means I have a responsibility toward the people who have invested their money with me and I believe this has benefitted me personally by motivating me to do even more research and due diligence when comes to managing the portfolio. Also, I love the social interaction, and playing a bigger part in this awesome community has been great. My main focus and long-term goal at eToro is still to grow the portfolio, keep getting the best possible return, and to be profitable on a consistent basis for myself and my copiers. Hopefully, by doing that, I can keep attracting people to invest with me and remain a top-performing Popular Investor on eToro.

Do you have any advice for your copiers/users considering copying you?

Keep a long-term goal in mind. Equities, and technology stocks in particular, are one of the most profitable investment categories, but they can also be volatile in the short-term. The important thing is to stay calm and have patience. If the market suddenly drops, it can be difficult to stay calm, but just open up a chart and zoom out a bit — most times it will make the drop look like a small blip in the overall performance. History shows that even if you start investing at a really bad time, if you stick with your investment choices, you will be far better off than selling and investing in something else every time. This is how many people lose money in the stock market, which remains one of the best places to put your money.

What are your hobbies?

Then: Braaing (barbequing) with friends, traveling, gaming, and snowboarding when we get the occasional snow in Lesotho.

Now: Spending time with my wife and adorable daughter 🙂 When I get the time, slowly converting my home into a ‘smart’ IOT home.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
This is not investment advice. Past performance is not an indication of future results.

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Cybersecurity took center stage in 2018 and could present an exciting investment opportunity

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Cybersecurity has always been a topic of importance for both enterprises and individuals. However, 2018 was riddled with events that highlighted just how crucial an issue it is, following privacy breaches such as the Cambridge Analytica Facebook scandal. With renewed interest in online safety and privacy, cybersecurity stocks are attracting increasing attention in the investment world.

2018 – the year of the hack

The attention to online privacy reached new heights in 2018, following the Cambridge Analytica scandal, which jeopardised the data of some 87 million Facebook users¹. The scandal put in question many of Facebook’s user privacy practices, resulting in Founder and CEO Mark Zuckerberg testifying before Congress. A month later, the General Data Protection Regulation (GDPR) came into effect in the EU, applying new restrictions on any entity that collects personal data.

The dynamics of online security

One of the reasons cybersecurity is, and will remain, a hot topic is the ever-changing nature of the online world. With so much sensitive information being stored in the cloud and on computer networks, the risks are ever growing and the need for effective cyberdefenses is ever present. From “simple” risks, such as phishing scams, to complex ransomware programs and crypto mining bots, each person and enterprise with an online presence is in danger of falling victim to a cyber attack.

The cybersecurity industry is huge, estimated at more than…

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Mobile payments is a big market – and it’s about to get much bigger

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In recent years, mobile payment has become a key method of online shopping and other forms of eCommerce. With more members of Generation Z, who grew up in a world where smartphones were not an innovation, but a reality, this segment of the financial space is expected to grow tremendously in coming years. With more smartphones in people’s pockets and an increasing number of countries shifting towards cashless economies, it is no surprise that many of the leading payment technology companies in the world are constantly working to introduce new and improved payment solutions.

In 2016, the mobile payment market was valued at $601 billion¹. By 2017, it grew to nearly $720 billion², and it is expected to cross the $1 trillion milestone in 2019³. Forecasts suggest that it will continue to grow, reaching anywhere between $2.7 and $4.5 trillion by 2023. This growth will be prompted by many catalysts, which will both get more people to use mobile payments and make it easier for existing users to conduct more of their transactions with mobile devices.

Going mobile

The introduction of mobile internet and smartphones placed mobile payment at the fingertips of billions around the world. As the industry grew, more users started using mobile payments, due to its seamless, frictionless nature. Moreover, using an application for making payments gives the user more transparency and control over their finances,…

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Big banks, big opportunity? Earnings season kicks off

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Each quarter, publicly listed companies share their earnings reports with their investors and the general public. These reports provide insights into each company’s performance and more often than not, impact their stock prices. Over the next six weeks, companies will be sharing their reports for the fourth quarter of 2018 (Q4), with major banks kicking off the earnings season.

Reporting earnings in a challenging market

This earnings season has a very meaningful backdrop, as Wall Street has been heavily impacted by external forces recently. Firstly, the Fed’s drive to hike rates over the past year, with four rate hikes in 2018, has put pressure on the market.

Perhaps the most important factor causing Wall Street to struggle recently has been the rising yield of 10-year bonds. These bonds, issued by the US Treasury, present a relatively low-risk investment option and produce steady returns twice a year. When the interest produced by these bonds is high, it could push investors away from the stock market, as the safer option is now also high yielding. Recently, 10-year bond yields have been giving investors interest rates of 2.73%.

Entering this earnings season, many companies face the challenge of remaining a lucrative investment option for their shareholders. For some companies in the financial sector, this season might be especially crucial, as they have to recover from less-than-impressive results last quarter.

Banking on earnings

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