Financial Technology (FinTech) has been around since the 21st century, aiming to provide financial services by leveraging on software and modern technology. Similar to PropTech, it is an emerging industry that brings powerful automation for the delivery and activities in the field of Finance.
We wanted to learn more on how FinTech brought innovation to online trading, thus we caught up with Aaron Wee, a Popular Investor on eToro to understand more.
Chong or commonly known as @Alderique, is an extremely articulate bookworm from Singapore. His unique, somewhat philosophical approach to trading and investing makes him an interesting character in the world of online trading. He is also on the Popular Investor program at eToro, his preferred trading platform.
eToro has been a leader in the global Fintech revolution since it was founded in 2007. It is the world’s leading social trading network, with millions of registered users and an array of innovative trading and investment tools.
Here are his thoughts about trading on eToro.
1. Tell us a little bit about yourself
I’m someone who believes in maintaining a balance between idealism and pragmatism. While logic and rationality are highly prized within society, I’m of the opinion that it would not be prudent to simply discount creative ambiguity. Without the former, anarchy ensues. But sans the latter, one would eventually find oneself in a rut repeating a repertoire.
To quote Robin Williams as his character John Keating from Dead Poet’s Society: “We don’t read and write poetry because it’s cute. We read and write poetry because we are members of the human race. And the human race is filled with passion. And medicine, law, business, engineering, these are noble pursuits and necessary to sustain life. But poetry, beauty, romance, love, these are what we stay alive for.”
In short, I’m an idealist masquerading as a pragmatist. I like to think that my investment portfolio reflects that.
2. What are your hobbies?
I read, a lot. I’m also in the process of writing a series of 4 books.
3. Did you have previous experience with financial investments before joining eToro?
Not really, no. Well, not unless you count the random deposits into a little red tin can among these “financial investments”. In some manner of speaking, I suppose this places the complexity that many would alleged financial investments to have, in a questionable light.
I firmly believe that anyone can do what I’m doing.
4. Why did you choose to join eToro?
The simplicity of the platform’s user-interface. As a rookie investor a year ago (and maybe even now), I remember being lost amidst the barrage of information other platforms provided. Charts, graphs, random digits and whatnot. Many of them had interfaces that, in my opinion, were extremely cluttered. I never knew what I was looking at or what all the numbers meant.
eToro made it simple. Clean, neat, precise and concise. Me likey.
5. What are the three key benefits of using eToro?
I would be most remiss if I didn’t firstly highlight the mass benefits of having a social platform combined with an investing/trading site. Apart from the random jokes I poke at people who I feel take themselves way too seriously (I’m not going to hide the fact that I did that), I get to observe the general sentiment of the market and take notes. To a certain extent, it also affords me some lessons in human behaviour, as I learn how people generally respond to various activities within the markets. For instance, the phrase “to the moon!” seems to be quite the staple around cryptocurrencies. Coincidentally, “this crypto is garbage!” also seems to be rather common in a converse scenario.
Secondly, and to add on to my aforementioned point about simplicity, I enjoy that eToro also literally allows me to be privy to the pulse of the market. I’m in Southeast Asia, and it’s night for us when the NYSE opens. My last activity before bed usually includes observing the pre-market prices, looking through my newsfeed, and watching my profits either tumble or soar when the green or red flashes start.
Third would have to be the ability to copy or follow another investor. Doing so allows people who are fresh into the trading/investment scene to learn and more importantly, benefit from others who’ve been around the block. I would urge my fellow Popular Investors to not shy away from questions, even if they may seem extremely basic. After all, we’ve all started out somewhere, and any help would have been appreciated.
In summary, jokes and lurking, market’s heartbeat and community involvement.
6. How has eToro changed the way you trade?
I’d like to highlight two points here. The first being, I can’t say that eToro has “changed” anything for me. As mentioned previously, I was a newbie when I joined eToro. You could say I cut my teeth on the bull’s horns. What I can say, however, is that I’ve learned a lot from fellow users on the platform.
Secondly, and this is something I’ve often reiterated to my followers and copiers. I do make it a point to make a differentiation between investing and trading. I’m part of the former.
7. What is your type of trading strategy and what is it focused on?
In short, diversification within a circle of competence.
My portfolio focuses on covering the various sectors while maintaining that capital allocation stays within a certain algorithm. This ensures that no part of the portfolio is overly exposed to any one sector. I started implementing this in June 2017, when the tech sector took a rather nasty hit and affected the 39% of my portfolio allocated to it. That led me to look towards diversifying into the various markets as well. I’m hoping that I’d be able to find enough stocks within eToro that allows me to diversify within each market too.
So to illustrate, my ideal portfolio would consist of various sectors within various markets, all adding up and staying within the said algorithm.
Also, I don’t enjoy holding on excessive amounts of profit. I tend to liquidate positions once they reach a certain maturity. The principal amount would be reinvested into the original position, while profits would be invested into something else. This essentially compounds the portfolio.
8. What are the benefits of being a Popular Investor and what is your long-term goal?
On a personal note, it gives validation to the time spent working behind the scenes on each decision I’ve made thus far. I see the trust of my copiers and followers as their votes of confidence in my investment methodology, and I constantly thank them for it. Because really, they’re the ones who’ve contributed greatly to my being here today.
I do have a long-term goal in mind that I’m still working out the kinks on. My experience on eToro would be an impetus when it’s ready.
Indeed, Aaron is quite a unique character. His philosophical approach combined with pragmatic thinking give an added layer of sophistication to his online trading and investing prowess. We wish him the best of luck as he continues his journey as a Popular Investor.
This content is provided for information and educational purposes only and should not be considered to be investment advice or recommendation. Past performance is not an indication of future results. All trading involves risk. Cryptocurrencies are a highly volatile investment product. Your capital is at risk.