By eToro

“Trading is a marathon, not a sprint” – meet Popular Investor harshsmith

Harshvir (@harshsmith) from Australia has been with eToro since mid-2017. Although starting out as a currency trader, he later turned his attention to stocks and also delved in crypto. As an eToro Popular Investor, he says that he enjoys both the benefits and the responsibilities that come with the title. We asked him a few questions about his trading strategy and his personal life:

74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Past performance is not an indication of future results.

Tell us a little about yourself. What do you do for a living, for fun, family?

I work in a managed fund as a portfolio risk management analyst. During the weekend, on nice sunny days, I usually find myself at the beach or on a road trip on a good hike. I am into photography, so most of the time I am looking through a lens. On rainy/cold/don’t-wanna-do-anything days, I am usually inside researching, reading or playing beat saber. As for family, I live alone with a Golden Retriever and his name is Jazz.

Where do you do your research on the instrument in which you invest?

I use various platforms for different tasks. At work, I use terminal for most  things, but at home, I usually use Seeking Alpha to research stocks.

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

Not quite. I did trade currencies for a little while on other platforms, but soon realized that analysing stocks is a much better option than analysing reserve banks around the world.

Do you have any specific profit goals for each year? How do you achieve/plan to achieve them?

I usually do not set profit targets but that being said, I am happy with a consistent 20-30% year-over-year profit. However, in terms of target, I am trying to minimise my portfolio drawdown. And I think so far this year, I have reduced my drawdown to below 5%. My portfolio still reflects the drawdown from last year but that should change as we progress closer to the end of the year.

How has eToro changed the way you trade?

As  a social platform, eToro has loads and loads of information available. Obviously, the way we trade changes over time with market conditions, but the knowledge which other traders on eToro provide on instruments with which I am not familiar, is invaluable. For example, I follow and trade cryptocurrencies with a fundamental belief that cryptos at some point will serve as a buffer against any currency mishaps, sort of like gold. However, when it comes to blockchain and other technology behind the scenes, I usually read what other crypto Popular Investors and traders are saying. This helps me understand the use of blockchain as a technology (besides currency hedge) that cryptos provide.

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

I mostly trade stocks. I usually analyse the growth and what multiple stocks are trading at and then decide whether risk-reward is favourable by looking at overall economic factors. Depending on market conditions, I place hedges to protect my portfolio against the direction I am trading in. I do not have any set strategy as the market is always changing and no strategy works perfectly all the time.

What are the benefits of being a Popular Investor?

One of the main benefits of being a PI is obviously the extra income you can earn while making money trading yourself. Although this benefit comes with the tremendous responsibility of managing money that other people entrust you with, so I guess that balances things out.

Why do you think eToro clients should copy you?

One of the best things about eToro is its lower commissions/fees when trading stocks, which is one of the main reasons I started trading on eToro in the first place. However, the commission is only a small part of your overall portfolio. Does it matter? Absolutely! But when it comes to consistent returns year after year, what matters most is doing proper research about stocks before buying them, analysing market sentiment, noting what institutional portfolios are positioning for the coming quarter and the quarter after that, and most of all, absolute discipline. What I am aiming for first and foremost is to preserve funds that I have and then work towards making profits and achieve consistent yearly profits. I believe this sort of portfolio can work for people who want to invest their money for consistent yearly returns without taking on any headaches of looking at markets every day or every week, knowing that I will  do my best to safeguard and grow their investments steadily over time.

Anything else you’d like to add?

Trading is simple but never easy. We learn to study the micro details of fundamentals, technicals and our emotions. Day by day, it is continuous learning of moving forward to progress. Trading is a marathon, not a sprint, and the sooner we learn this, the better investors we become. Investing your money well and seeing your portfolio grow over time is one of the best financial decisions anyone can make in life.

74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Past performance is not an indication of future results.

To learn more about online trading and investing, check out this Fintech Guide.

Harshsmith contributed to this article in his personal capacity. The views expressed are his/her own and do not necessarily represent the views and the assessments performed by eToro.

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFD assets.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% 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.

Cryptoassets are highly volatile unregulated investment products. No EU investor protection.

This content is intended for information and educational purposes only and should not be considered investment advice or investment recommendation.

Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as a basis for investment decision.