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 definitive
guide to investing in the fintech age.
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Why Should You Read
The Complete Fintech Guide?
No matter where you live or your level ofexperience,
you will find this guide brimming with information
for your financial education. eToro’s goal is to
educate investors and bring transparent investing
to anyone who wants it, rather than just the elite.
The more you know about investing, the more
confident you can be when making decisions.
Expand your wealth building to include alternative
investments you haven’t previously considered.
This guide will introduce you to a broader world of
investing. Enjoy!
What to Expect From This Guide
You’ll learn basic and advanced trading and wealth
management techniques. Find tools to assess
your personal risk level and develop your unique
investment strategy. You’ll discover a wide range of
different investments, giving you options to best fit
your goals. You’ll see how money grows and gain
reasonable expectations for your wealth building.
When you finish this guide you will:
Understand the ‘plague’ that stops investors
from making money
Know which kinds of stocks will let you sleep at night
Learn how to assess a company's value so you
don’t overpay
Find the ‘market maker’ secret to buying and
selling for best returns
Understand cryptocurrencies and how to profit
from them
Explore the world of currency trading most
investors never see
Learn how debt can make you money
Find five different ways to hold precious metals
and other assets for added security
And much, much more
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If you are new to the world of investing, we
recommend starting from the beginning and
reading the book chapter by chapter. When you
are finished, you will have the knowledge and
confidence to invest. Likely, you will have a more
advanced knowledge of investing than most of your
friends and co-workers. Indeed, you may become
the resident expert.
If there is a particular investment opportunity that
interests you, like currencies or value investing,
you can go there directly. Use our trading glossary
to understand any term or acronym you’re not
familiar with.
If you are a seasoned investor, check the Capitalise
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 find solutions
that can make your investing easy, enjoyable, and
rewarding.
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 financial lives. It is aimed at young investors
who have time to build their wealth. Experienced
investors will find ways to expand and diversify
their investments. And everyone interested in
investing, trading, and building wealth will find it to
be an extremely useful investment resource.
New technology, such as the eToro trading
platform, democratises investing. Now, investing
and wealth building become available to every
person. This guide is for people who want the
freedom to explore investing and the knowledge
to do it well.
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Dear traders and investors,
Welcome to the Complete Guide to
Fintech Trading and Investments,
and thank you for taking the time
to read this intro. Whether you’re
an experienced trader, or making your first steps
in the world of trading, I’m certain you will find it
interesting and enlightening.
Here at eToro, we aim to disrupt the traditional trading
industry by making online trading and investing
available to anyone, anywhere. A key element to
achieving this goal is promoting financial literacy.
Over the years we’ve gathered knowledge which
I believe benefits both seasoned and beginner
traders. Since helping people become better traders
is part of our agenda, we’ve become quite proficient
at making the complex world of finance easier to
understand. And this is what this guide is all about.
If you’re not familiar with eToro, here’s a little bit
about us:
We’ve been around for about 10 years now, and I’m
proud to say that we are considered global leaders
and pioneers in the fintech revolution. We were
watch by FT and were recently awarded the Best
biggest fintech conferences in the world. This is a
global phenomenon, and eToro is at the forefront.
Our strongest points have been promoting social
trading by inventing CopyTrading, and supplying
solutions for a wide scope of clients, from day
traders to long term investors, such as our
A Word From eToro CEO and Founder,
Yoni Assia
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Six million users strong, I am now confident 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 financial industry:
‘The next generation of retail and social trading
platforms offer effective means for individuals to share
or sell their investment expertise, directly competing
with traditional investment managers’.
I know there is something for everyone in the guide
you are about to read, and I’m sure it will benefit
you as a trader and enrich your knowledge.
Happy trading!
Yoni Assia
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Table Of Contents
1.1 What Is Fintech? Understand the technology
revolution in finance
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 fintech on all aspects of finance and
technology
1.4 Why Fintech? Everyday ways you use, or can
use fintech, to make your life easier, faster ,and
have more control
1.5 Why Is Fintech Important? How fintech
has enabled a new, disruptive method of
buying and selling stocks, bonds, currencies,
cryptocurrencies, and other commodities
1.6 The Fintech-CFD Connection A new fintech
advance creates more opportunities for
non-institutional investors to invest in
currencies, commodities, and global assets
In this chapter you’ll learn about this changing
and disruptive movement, and get a glimpse
of how you can take advantage of it to increase
your freedom of choice. You’ll see the history,
the industries it is radically changing, and new
investment opportunities it provides.
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Table Of Contents
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
Different 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
In this chapter you’ll learn the basic flow of
money. How do you grow it? What factors cause
people to lose money? And where can you go to
find reliable sources of information?
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Table Of Contents
3.1 Understanding Market Cycles What causes
trends and cycles. How to use them for
potential profit
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
In this chapter you’ll start to see how different
cycles and the news affect the price of your
equities so you are better able to buy and sell
at profitable times. You’ll also learn how to find
your risk tolerance so you can trade or invest in
a way that’s comfortable and enjoyable for you.
3.3 Risk vs. Reward Everyone’s risk tolerance
is different. Learn the risks and possible
outcomes of your investments. How to assess
your level of tolerance
3.4 Risk Score eToro’s risk management service
lets traders see their risk score and the scores
of other public traders
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Table Of Contents
4.1 Fundamental Analysis The meaning of
financial 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
In this chapter you’ll gain essential methods to
help you get into the market and exit the market
at better price points. You’ll learn how to find the
value of a company, to understand the numbers
on stock pages and annual reports, and to use
charts to find trends.
4.3 Technical Analysis - Making Sense of Charts
and Tools Understand the value of charts and
tools. How to read a chart to find entry and exit
points, trend lines and channels, candlesticks,
and support and resistance lines
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Table Of Contents
5.1 Owning Assets and the Bid/Ask Spread How
to buy and sell stocks and ETFs. Set-up stop
losses and market orders
5.2 Options Learn the basics of buying and selling
puts and calls
In this chapter you’ll learn the fundamentals
of how to buy and sell different kinds of assets
and how to use derivatives to take advantage of
asset price movements. You’ll learn how to use
protective stops to minimise risk.
5.3 Contract for Difference (CFD) The advantages
of trading CFDs and how to trade them
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Table Of Contents
In this chapter you’ll learn what asset allocation
is and how to use it to diversify your portfolio.
You’ll understand why you need to diversify and
different ways of doing so to reduce risk.
6.1 Assessing Your Timeline and Goals How to
use age, goals, and portfolio timeline to plan
investment strategy
6.2 What Is Your Risk Tolerance? Assess your
tolerance for risk based on financials and
emotions. See how leverage and compounding
adjust your risk
6.3 Developing a Risk Tolerant Strategy Discover
different kinds of strategies and see how asset
allocation fits in
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Table Of Contents
In this chapter you’ll learn how to use the
information you’ve gained about your investment
strategy to help you put your portfolio together.
How to use the expertise of others to manage
your risk and increase the chances of success.
7.1 Balancing Risk, Profitability, and Diversity
How these three aspects contribute to your
ideal portfolio
7.2 Regular Additions to Your Wealth-Building Fund
Understand the advantage of adding money
to your portfolio on a regular basis
7.3 Using Model Portfolios and Copy Trading Risks
and benefits of using investment advisors’
strategies. How to build a portfolio based on
copying other traders
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Table Of Contents
In this chapter you’ll learn categories of stocks
and what they do. Discover what influences
company growth and returns. You will also
learn how to diversify through stocks and about
different ways of owning or managing stocks.
8.1 Asset Sectors Description of each asset sector,
the cycles it follows, general risk factors,
and major players. This includes: consumer
discretionary, consumer staples, energy,
financials, healthcare, industrials, materials,
technology, and utilities
8.2 Finding Diversity in Stocks Find out the
categories of stocks by size, production,
dividend, location and why these matters to
the investor
8.3 Ways of Owning or Controlling Assets Check
out ownership vs. control. Learn about REITs
and limited partnerships
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Table Of Contents
In this chapter you’ll learn what a bond is and
about six different kinds of bonds. Discover
how to loan money to governments and
businesses.
9.1 Kinds of Bonds Learn about treasury,
municipal, corporate, perpetual, and other
kinds of bonds
9.2 Earning Money with Bonds See how to buy
and sell bonds while understanding the risks
and benefits associated with bond
ownership
In this chapter you’ll find out what an Exchange
Traded Fund (ETF) is and how you can use them
to increase your wealth. What kinds of ETFs are
available? How do leveraged ETFs work? What
are the risks and advantages of trading in ETFs?
10.1 Kinds of ETFs Explore the diversity of ETFs in
stocks, commodities, bonds, currency, real
estate, and more
10.2 Leveraging ETFs The power and risk of
leveraging with inverse and multiple ETFs
10.3 Trading ETFs See different ways to trade
ETFs and these risks and advantages of the
methods
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Table Of Contents
In this chapter you’ll discover a new method
of trading derived from futures trading. Find
out the history of futures and CFDs. Learn
the differences between purchasing and
contracting for difference and what you need
to know before you begin trading CFDs.
11.1 The History of Futures Trading From
commodity trading to digital assets, learning
about the origins will enable you to trade
better, today
11.2 Asset Ownership vs. CFDs Understand
what you are trading and the similarities
and differences between asset ownership
and CFDs
11.3 Before You Begin Trading Learn these
essentials before yourself start to give you
an added advantage
11.4 Using Leverage What is it? How can you best
use it within your risk/reward tolerance level?
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Table Of Contents
In this chapter you’ll get an idea of what it’s
like to be a day trader or a swing trader. What
do you need to get started? What skills and
tools must you have to trade successfully? How
do you find a trade with a high probability of
success? How to plan your entrance and exit
from the trade.
12.1 What are Day and Swing Traders? What
are they? How to know if you want to be
one. Advantages and risks
12.2 What Do You Need to Get Started? Check
out the list. It includes: equipment, money,
mindset, knowledge, and more
12.3 Follow a Sample Trade See how to set up a
sample trade strategy. Find entry and exit
points. Set stops for profit or loss
12.4 Ten Tips Every Frequent Trader Needs to Know
For better results, learn tips from the
experts for better results
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Table Of Contents
This chapter explains how to trade currencies.
Learn the currency trading language and the
popular trading pairs. Understand trading
strategies and how to use leverage. Find ways
to reduce risk in currency trading and learn tips
from the experts.
13.1 Terminology Learn common currency terms
and trading pairs so you enter trades with
more confidence
13.2 Getting Ready to Trade Understand the
fundamentals of currency movement. Learn
about time, fundamentals, technicals,
interest rates, news events, and entry and
exit plans
13.3 How to Make a Trade Walk through the
set-up of your trade in the eToro platform.
See ways to go long and short. Evaluate
entry and exit points using charts
13.4 Controlling Risk Use exit points to control
emotions. Decide the best leverage for your
trade. Understand the need for discipline
13.5 Tips for Currency Trading Learn from the
experts for faster skill building
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Table Of Contents
In this chapter you’ll discover a new and potentially
highly profitable currency. You’ll learn the history
behind the blockchain and cryptocurrencies.
You’ll see why they are highly effective and poised
to change the way people and businesses use
money. You’ll learn advantages and methods of
trading this currency.
14.1 History of the Blockchain Learn how this
technology solves financial and business problems
and stands to disrupt old technologies. How did it
start? What is its potential?
14.2 Cryptocurrency Terminology Understand
new words and new uses for old words so you can
move confidently in this new world
14.3 What is a Blockchain? Learn how it’s
made, what it does, and why it benefits financial
institutions and businesses
14.4 Building on the Blockchain: Crypto-Tokens
Find out how you can own or trade a part of a
virtual company with virtual currency. Learn about
dual purpose coins
14.5 Cryptocurrencies and Tokens Discover
strong and emerging cryptocurriences. Find out
their histories, strengths, and weaknesses. Bitcoin,
Coloredcoin, Dash, Doge, Ethereum, Litecoin,
Metacoins, Monero, XRP, and more
14.6 Trading Cryptocurrencies Learn how to
buy coins and trade on crypto-exchanges or in a
multiple security trading platform
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Table Of Contents
In this chapter you’ll discover a new and potentially
highly profitable currency. You’ll learn the history
behind the blockchain and cryptocurrencies.
You’ll see why they are highly effective and poised
to change the way people and businesses use
money. You’ll learn advantages and methods of
trading this currency.
14.1 History of the Blockchain Learn how this
technology solves financial and business problems
and stands to disrupt old technologies. How did it
start? What is its potential?
14.2 Cryptocurrency Terminology Understand
new words and new uses for old words so you can
move confidently in this new world
14.3 What is a Blockchain? Learn how it’s
made, what it does, and why it benefits financial
institutions and businesses
14.4 Building on the Blockchain: Crypto-Tokens
Find out how you can own or trade a part of a
virtual company with virtual currency. Learn about
dual purpose coins
14.5 Cryptocurrencies and Tokens Discover
strong and emerging cryptocurriences. Find out
their histories, strengths, and weaknesses. Bitcoin,
Coloredcoin, Dash, Doge, Ethereum, Litecoin,
Metacoins, Monero, XRP, and more
14.6 Trading Cryptocurrencies Learn how to
buy coins and trade on crypto-exchanges or in a
multiple security trading platform
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Table Of Contents
In this chapter you’ll learn the background and
history of commodity trading. Discover the unique
language of commodity trading and how you can
participate in trading commodities. Understand
how and why commodities trend and change in
price. See the most commonly traded assets and
the advantages and disadvantages of trading.
15.1 Commodity Trading History Discover
the background of commodity trading to
better understand how to trade them
15.2 Commodity Terminology Learn the terms you
need to know to start trading
15.3 Nine Ways to Trade (or Own) Commodities
Take advantage of a variety of trading
methods. They include: ownership, futures,
stocks, CFDs, and more. Each offers an
opportunity to profit from price changes
15.4 Commonly Traded Commodities Learn about
trading gold, silver, platinum, palladium,
copper, oil, and natural gas
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Table Of Contents
In this chapter you will learn about social trading.
Find out how to choose the right trading platform
and the strategies behind copying other traders.
Learn how to attract traders to copy your trades so
you can build another source of income.
16.1 Getting Started Trading Learn about social
trading and how to sign up. What countries
prohibit social trading. How to open an
account and set up your private and public
profiles
16.2 Copy Trading Strategies Learn choices unique
to social trading. How to get the most from
social investing
16.3 Growing Your Inuence How to become a
trader others follow to create another stream
of income
16.4 Professional Traders The advantages of
bringing your business to trading platforms
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Table Of Contents
In this chapter you’ll discover the ease of building
a portfolio with CopyFunds™. Find out how to use
them to diversify your portfolio and to manage
risk. Learn how you can hedge with CopyFunds™
and build on the expertise of renowned
professionals.
17.1 Top Trader CopyFunds™ Find funds built on
the top traders on the platform: quarterly
results, active traders, most copied traders, etc.
17.2 Market CopyFunds™ Copy the funds that
follow market sectors: banking, gaming,
consumer discretionary, travel, tech, global
funds, etc.
17.3 Directional Funds Trade directional positions:
shorting the market or market sectors with
easy-to-use funds
17.4 Partner CopyFunds™ Take advantage of
established professional investors by copying
their trades within a fund
17.5 Conclusion The fintech revolution makes
investing more accessible to the average
trader. It opens possibilities to trade
currencies, cryptocurrencies, CFDs, and
traditional stocks and bonds on one trading
platform. Knowledgeable investors may find
great opportunities to profit
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Table Of Contents
Glossary and definitions of financial terms
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About the Authors
Mati Greenspan was born with
investing in his genes His grandfather,
a self-made multimillionaire,
discussed investing over the dinner
table and many of his siblings entered
the family business. But Mati struck
off on his own. At 13 he was reading the Wall Street
Journal and paper trading. He is drawn to the thrill,
the excitement, and the adventure of day trading. ‘It’s
like a computer game,’ Mati says. ‘You just have to see
the patterns and trends, and when you win the prizes
are in real money.’
Mati mostly focuses on globally traded markets such as
currencies, commodities, and indices. He is fascinated
by the macro stories behind the moves. He trades
primarily based on the fundamentals and uses the
technicals to determine support and resistance. What
does he do in his spare time? Watch the news and
social media looking for the stories that will inuence
the markets… and trade.
Mati is a high leverage, fully invested trader and is
very comfortable taking on high risk. He is currently
the Senior Market Analyst at eToro and loves helping
others learn the markets and trade more effectively.
‘The financial sector represents about 10% of the
world’s wealth,’ Mati says. ‘Why not have it accessible
to the average guy?’ Many novices fail to profit from
this potential but Mati thinks that with knowledge
and the eToro trading platform, they can. He loves to
help them learn and succeed. If you have questions,
feel free to contact him on Twitter or on the eToro
network. He’ll be happy to answer. He takes great
satisfaction in your success.
Mati lives in a small town in Israel, not far from the
Tel Aviv office and has an amazing wife and two
lovely daughters.
Contact Mati in any of these ways:
https://twitter.com/MatiGreenspan
https://www.etoro.com/people/matigreenspan
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About the Authors
Sandy Fox also grew up in an
investing family. Her grandmother’s
IBM stocks paid for part of her college
education. She’s been investing in
stocks, options, and real estate for
the past 35 years and recently has
been enamoured with pre-revenue start-ups, private
lending, and cryptocurrencies.
She also writes about finance and investments.
She loves to learn about the ow of money and
then share that knowledge with others. Her 25
year writing career has covered writing stories for
children, travel articles for magazines, books, white
papers, and more recently, articles and reports on
investing, business, real estate, finance, insurance,
gold, and biotech start-ups.
‘The difference between wealth and poverty is so
often the knowledge of how to handle money,’ Sandy
says. Learning empowers people. It changes lives
for good. Contact Sandy through LinkedIn or her
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