NATIONAL UNIVERSITY 1

INVESTMENT AND PORTFOLIO MANAGEMENT

ETORO TRADING

Section FIN191

Submitted by:

Alayon, Katherine Cates J.

Submitted to:

Mr. Avillardo V. Clarin

Date of Submission: June 23, 2022

 NATIONAL UNIVERSITY 2

I. ETORO PORFOLIO
 NATIONAL UNIVERSITY 3

II. TRANSCRIPT OF REFLECTION ON TRADING /INVESTMENT PORTFOLIO

The stock market consists of financial transactions in which stock shares and
other forms of securities from publicly traded companies are traded. It is the place of
investment trading, in which numerous organizations in various market kinds offer
buying and selling of stocks. There are numerous conventional and modern investment
firms where trading takes place, and the Etoro platform is an example of a modern
stock market that allows users to expand their financial knowledge and expertise. With
over 20 million active participants from over 100 countries, it is the world's biggest
social investing network. A global multi-asset platform that enables users to invest in a
wide range of assets such as equities, ETFs, commodities, currencies, crypto assets,
and other intelligent investments.

It is common knowledge that investing should be properly researched before

deciding to participate in it so that I’m having a hard time to decide which asset to buy
first and also, I am afraid of losing money. This is why I did not buy in any company
right away when we were told to, but instead intended to diversify because a well-
diversified portfolio offers the best predicted yield. I almost forgot that I needed to
invest on stocks because I don’t know what to do. I don’t know where and what stocks
to invest. But eventually I decided to invest first on the cryptocurrencies which is the
Bitcoin and Shiba as I know that the value of cryptos is higher compared to the other
stocks and these two are the top gainers on the day that I decided to start investing.
And as the day passes, I noticed that I’m not gaining so, I search for other stocks to
buy. NATGAS is the other stocks that I decided to buy as I assume that the prices of
oil and gas will increase because of what happened between Russia and Ukraine. After
I invested on NATGAS, I started gaining and I gained 28.85% rates of return. But still
my investment on cryptocurrencies are not gaining. Another day passes, my classmate
messaged me on facebook that some of her stocks got closed automatically and she
don’t know why, so I got confused because my stocks are not closing automatically. I
go to etoro again and search for what could possibly the cause of closing stocks
 NATIONAL UNIVERSITY 4

automatically. And after an hour of searching, I found out that there is a thing called
stop-loss. A stop-loss order is an order made with a broker to buy or sell a certain
stock at a certain price. Stop-loss orders are used to restrict an investor's loss on a
security holding. For example, setting a stop-loss order 10% below the price at which
you purchased the stock, will restrict your loss to 10%. Her stocks got closed because
it reached the amount of stop-loss. From there, I learned that you could set a specific
price to automatically closed the stocks when it reached the amount that you set.

As I have learned to set stop-loss, I changed my investment strategy. This is an

old and cliched notion, but it is the most reliable when it comes to delivering
consistent results. To prevent becoming a part of the market's crash, I should sell my
shares, pocket a profit at the highest point, and then buy back when the recession hits.
This is when I invest again on commodities such as Shell and Oil. My assumption on
investing in commodities are correct because the invasion of Ukraine has had a range
of effects on supply dynamic behavior. Wheat and oil are projected to be affected
commodities because of the crisis, resulting in higher prices for consumers but
opportunities for investors. I gained 50.01% rates of return on Oil but Shell on the
other hand is losing -4.69%. As some of my stocks are still losing, I set a -$3,000
amount of stop-loss. This will help me to limit my loss. As you can see on my history,
many stocks are closed automatically because it reaches the specified amount of stop-
loss, and it is okay for me because I didn’t lose a huge amount of money.

Making an investment decision is never simple. Positive and negative cash

flows are both loaded with uncertainty. Choosing an appropriate discount rate is never
easy, but it has a significant impact on the go/no-go decision. Technical analysis based
on discounted cash flow methodologies does not reduce uncertainty and does not
allow for hunches and intuition. To achieve investing goals for financial stability and
success, discipline is required to correctly assess equities, manage risk, and optimize
profits. I've learned a lot about investing, including how vital it is to recognize what
sort of investor you are, your risk tolerance, and having an exit and entrance strategy.
 NATIONAL UNIVERSITY 5

And as someone who made countless mistakes and loses before recognizing the value
of studying the market, I can guarantee individuals that it makes a major difference in
success. So, establish investment plans to make smarter selections, always have a risk-
adjusted approach, and analyze the momentum of a business or the entire economy to
enter at the right time, avoiding losses and assuring your success.
 NATIONAL UNIVERSITY 6

REFERENCES:
Investopedia. (2022, June 12). The stop-loss order-make sure you use it. Investopedia.
Retrieved from https://www.investopedia.com/articles/stocks/09/use-stop-loss.asp

Patterson, S., & Goldfarb, S. (2022, April 1). Why are gasoline prices so high? Ukraine-
russia war sparks increases across U.S. Retrieved from
https://www.wsj.com/articles/why-gas-prices-expensive-11646767172