Investment Strategy

“As a technology professional with significant experience in product development and technology led business models it is no surprise that my portfolio is weighted in favour of tech based equities. I am firm believer in leveraging real world experience and being able to approach the technology sector with a background in IT based business models provides a solid foundation for my investing decisions.

In addition to technology investments I am also focused on financial services; insurance and banking specifically as these also are sectors that I understand well. The 3rd primary equity sector my portfolio includes is Healthcare. Medtech and healthcare is a sector that is booming and there are great returns to be had from innovative pharmaceutical and healthcare providers.

By and large my investment portfolio is weighted towards equity based investments in the aforementioned sectors with these investments generally made on US and UK based exchanges, and US and UK based firms. On occasion I also invest in European stocks and indexes together with stocks in Hong Kong, China and emerging markets, however the Chinese market has become less attractive in recent months (Sep, 2021).

To provide a degree of diversification I also follow and invest in commodity markets; Gold, Silver, Platinum etc. On an average given month my portfolio is likely to comprise of 10% commodities, 70% equities, 20% cash, indexes, or ETFs.

Unlike some eToro traders who invest in equity markets primarily my approach is a little different. The norm amongst popular investors who are all in on equities is to stay invested at around 100% of capital with investments in many, many stocks.

In my case I like to keep my portfolio focus very narrow and specialise in a small group of companies that have proven to generate high returns. Typically I will hold equity positions in no more than 20 firms at at time, which allows me to stay up to date with current earnings data, and news concerning those firms. I also tend to invest in small chunks, in a scaled manner in each given firm as price fluctuations occur. This ensures that I am able to close some trades at a profit on a given stock as the price climbs and maintain a cyclical reinvestment approach.

With it being more or less impossible to time market dips I also like to retain around 25-30% cash on hand to capitalise on market drops. So rather than invest 100% of my capital balance in the equity markets I tend to use around 1.25% leverage evened out across my open trades. This ensures that I am more or less fully invested but provides free liquidity to make sudden strategic moves.

For further information and to visit my eToro public profile please access the link below:

https://www.etoro.com/people/braven999

Nicholas Bravery