Table Of Content

The Complete Guide to Fintech Trading and Investments Building Wealth in the 21st Century Authors: Mati Greenspan, Senior Market Analyst, eToro Sandy Fox, Financial Author and Investor Congratulations! You have just opened the defnitive guide to investing in the fntech age. Introduction 2 Why Should You Read The Complete Fintech Guide? No matter where you live or the level of your investment strategy. You’ll discover a wide range of experience, you will fnd this guide brimming with diferent investments so you have options to best information for your fnancial education. eToro’s ft your goals. You’ll see how money grows and gain goal is to educate investors and bring transparent reasonable expectations for your wealth building. investing to anyone who wants it, not just the elite When you fnish this book you will: aThe more you know about investing, the more • Understand the ‘plague’ that stops investors confident you can be when making decisions. from making money Expand your wealth building to include alternative • Know which kinds of stocks will let you sleep at night investments you haven’t previously considered. • Learn how to assess a company's value so you This guide will introduce you to a broader world of don’t overpay investing. Enjoy! • Find the ‘market maker’ secret to buying and selling for best returns • Understand cryptocurrencies and how to proft What to Expect From This Guide from them • Explore the world of currency trading most You’ll learn basic and advanced trading and wealth investors never see management techniques. Find tools to assess • Learn how debt can make you money your personal risk level and develop your unique • Find fve diferent ways to hold precious metals and other assets for added security • And much, much more 3 Who Is This Guide For? How to Get the Most from This Guide This guide is for people who want to take control of their fnancial lives. It is aimed at young investors If you are new to the world of investing, we who have time to build their wealth. Experienced recommend starting from the beginning and investors will fnd ways to expand and diversify read the book chapter by chapter. When you their investments. And everyone interested in are finished, you will have the knowledge and investing, trading, and building wealth will fnd it to confdence to invest. Likely, you will have a more be an extremely useful investment resource. advanced knowledge of investing than most of your friends and co-workers. Indeed, you may become New technology, such as the eToro trading platform the resident expert. democratises investing. Now, investing and wealth building become available to every person. This If there is a particular investment opportunity that guide is for people who want the freedom to interests you, (like currencies or value investing) explore investing and the knowledge to do it well. you can go there directly. Use our trading glossary to clear up any term or acronym you’re not familiar with. If you are a seasoned investor, check the table of contents for alternative investments. Use them to diversify and broaden your portfolio. Our promise is that readers will gain a comprehensive understanding about different investment opportunities. You’ll see solutions that can make your investing easy, enjoyable, and rewarding. 4 A Word From eToro CEO and Founder, Yoni Assia Dear traders and investors, If you’re not familiar with eToro, here’s a little bit about us: Welcome to the The Complete Guide to Fintech Trading and We’ve been around for about 10 years now, and I’m Investments, and thank you for proud to say that we are considered global leaders taking the time to read this intro. and pioneers in the fntech revolution, and were Whether you’re an experienced trader, or making chosen as one of the top 10 fntech companies to your frst steps in the world of trading, I’m certain watch by FT and was recently awarded the Best you will fnd it interesting and enlightening. of Show Award by FinovateEurope, one of the biggest Fintech conferences in the world. This is a Here at eToro, we aim to disrupt the traditional trading global phenomenon, and eToro is at the forefront. industry by making online trading and investing Our strongest points have been promoting social available to anyone, anywhere. A key element to trading by inventing CopyTrading, and supplying achieving this goal is promoting fnancial literacy. solutions for a wide scope of clients, from day traders to long term investors, such as our CFD Over the years we’ve gathered knowledge which trading platform and our CopyFunds™. I believe benefits both seasoned and beginner traders. Since helping people become better traders is part of our agenda, we’ve become quite profcient at making the complex world of fnance easier to understand. And this is what this guide is all about. 5 If you’re not familiar with eToro, here’s a little bit ‘The next generation of retail and social trading about us: platforms ofer efective means for individuals to share or sell their investment expertise, directly competing We’ve been around for about 10 years now, and I’m with traditional investment managers’. proud to say that we are considered global leaders The Future of Financial Services, World Economic and pioneers in the fntech revolution, and were Forum, June 2015 chosen as one of the top 10 fntech companies to watch by FT and was recently awarded the Best I know there is something for everyone in the guide of Show Award by FinovateEurope, one of the you are about to read, and I’m sure it will beneft biggest Fintech conferences in the world. This is a you as a trader and enrich your knowledge. global phenomenon, and eToro is at the forefront. Our strongest points have been promoting social Happy trading! trading by inventing CopyTrading, and supplying solutions for a wide scope of clients, from day Yoni Assia traders to long term investors, such as our CFD trading platform and our CopyFunds™. Six million users strong, I am now confdent that eToro is in the right place, taking part in a revolution that is changing the trading world. Even the World Economic Forum recognised that this is the future of the fnancial industry: 6 Table Of Contents Chapter 1. The Fintech Revolution In this chapter you’ll learn about this changing 1.5 Why is Fintech Important? How fintech and disruptive movement, and get a glimpse has enabled a new, disruptive method of how you can take advantage of it to increase ofbuying andselling stocks, bonds, currencies, your freedom of choice. You’ll see the history, cryptocurrencies, and other commodities the industries it is radically changing and new 1.6 The Fintech-CFD Connection A new fntech investment opportunities it provides. advance creates more opportunities for non-institutional investors to currencies, 1.1 What is Fintech? Understand the technology commodities, and global assets revolution in fnance 1.2 Fintech History When it began and how it transitioned to the powerhouse of today 1.3 How does Fintech Work? The far ranging impact of fntech on all aspects of fnance and technology 1.4 Why Fintech? Everyday ways you use or can use fntech to make your life easier, faster,and have more control 7 Table Of Contents Chapter 2. Financial Basics In this chapter you’ll learn the basic flow of money. How to you grow it? What factors cause people to lose money. And where can you go to fnd reliable sources of information. 2.1 Saving, Investing, Trading, Speculating How to know if your money is invested, saved, or speculated on a high-risk play 2.2 The Theory Behind Making and Losing Money Diferent ways money can be made: growth, dividend, options, currency. How emotional trading leads to losses and how to guard against it 2.3 Who Is Your Source? Gurus, other investors, news media, financial newsletters, robo advisors 8 Table Of Contents Chapter 3. Investment Basics In this Chapter you’ll start to see how diferent 3.3 Risk vs. Reward Everyone’s risk tolerance cycles and the news affect the price of your is different. Learn the risks and possible equities so you are better able to buy and sell outcomes of your investments. How to assess at proftable times. You’ll also learn how to fnd your level of tolerance your risk tolerance so you can trade or invest in 3.4 Risk Score eToro’s risk management service a way that’s comfortable and enjoyable for you. lets traders see their risk score and the scores of other public traders 3.1 Understanding Market Cycles What causes trends and cycles. How to use them for potential proft 3.2 Trading the News and Economic Calendar Stocks, currencies, and commodities all respond to news about markets, politics, companies, interest rates, and dividends. Use the news to adjust your trades 9 Table Of Contents Chapter 4. Fundamentals of Research In this chapter you’ll gain essential methods to 4.3 Technical Analysis - Making Sense of Charts help you get into the market and exit the market and Tools Understand the value of charts and at better price points. You’ll learn how to fnd the tools. How to read a chart to fnd entry and exit value of a company, to understand the numbers points, trend lines and channels, candlesticks, on stock pages and annual reports, and to use and support and resistance lines charts to fnd trends. 4.1 Fundamental Analysis The meaning of fnancial numbers on the stock page. How to determine the value of a company: beta, debt, dividends, enterprise value, EBITDA, EPS, etc 4.2 Company Valuation How to determine if a company is a good value. Ways companies can manipulate the numbers 10