When he joined eToro in April 2019, Hao Ning Ng (@HaoNing) started acting like a Popular Investor without even realising it. As he collaborated with like-minded traders, Hao Ning discovered how much he could help new investors find their feet in the trading world. Now, this 25-year-old uses inspiration from iconic investor Warren Buffet and the principles of the FIRE (financial independence, retire early) Movement to share his long-term compounding strategies with eToro CopyTraders.
Read on to learn more about his investing journey, his tips for beginner traders and some of his thoughts about the future of trading in Australia.
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67% 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.
Why and how did you get into copy trading?
I’m a millennial investor who first started investing in the ASX market in January 2018. Since then, I have managed a well-diversified portfolio composed of companies about which I am passionate, mostly technology companies. As I tried to diversify my portfolio more, I started looking into different ways to invest in foreign markets. Fast forward to April 2019, when I found eToro’s trading platform.
As a social investing platform, eToro lets me share my investment strategy with investors who have similar ideas. A lot of them started copying my trades, which made me realise that my knowledge could help a lot of beginners start investing in the stock market. That encouraged me to get into the copy trading community and become a Popular Investor. Now I post my analysis of individual stocks and keep my copiers updated on my portfolio’s performance.
What do you enjoy most about being part of the copy trading community, and how has it helped you succeed financially?
Being part of the copy trading community as a Popular Investor on eToro has driven me to invest more responsibly in the stock market. I now have a larger number of assets-under-management (AUM), which impact hundreds of lives. At the same time, it has helped me to become a better-informed investor, as I read more to try to ensure that every investment decision I make is based on solid principles.
What tips would you give someone who is looking to start copy trading?
In the past few years, I have seen individual shares experience huge rises and falls. One thing has stood out to me along the way — if you hold a high-quality stock long enough, it can often overcome the falls and end up climbing higher.
My best tip to anyone thinking of starting copy trading is to look for a portfolio with companies you are familiar with and a holding time that is long enough to benefit from the volatile market in the long term. No one can time the market perfectly, so why even try? That’s why I like to try to pick the best companies and let time run its course.
How do you feel the Australian market has performed so far, given the events of 2020, and what do you think might be in store for the rest of 2021?
Many would say 2020 was a horrible year for stock investors, but I think the 2020 market turmoil was actually one of the best times for stock investors. This is especially true for young investors who entered the market and built up their first portfolio with greatly discounted stocks. As governments around the world rolled out their own stimulus plans and enacted quantitative easing policies to boost local economies, we saw a huge global market rally from May to August.
Closer to home, I think the Australian market has performed considerably well, given how heavily the local economy was impacted by government-imposed restrictions in an effort to combat the horrendous pandemic. It’s still difficult to see what might be in store for us later this year, both locally and internationally. With this in mind, I think investors should always have a cash reserve set aside to scoop up any bargains that might appear if we ever see another stock market crash.
What about the future of trading in Australia makes you most excited?
As an ASX stock investor myself, I think the Australian market is an exciting place for long-term investors, as there are many great ASX-listed companies that have built their reputations locally and internationally. From the Afterpay (APT) success story of being one of the first buy-now-pay-later (BNPL) fintech companies to CSL Limited (CSL), a leader in developing biotherapies and influenza vaccines, we are lucky to be able to invest in many amazing companies with the potential to impact lives for years to come.
In his three years investing in Australian and US stock markets, Hao Ning has developed a long-term investment strategy that has helped him become one of eToro’s Editor’s Choices just two months after becoming a Popular Investor. Check out Hao Ning’s profile today to stay up to date on his market insights and learn more about his investing habits.
67% 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.
eToro AUS Capital Limited, AFSL 491139. CFDs are highly risky. eToro does not formulate, approve or endorse the third-party trading strategies that customers may choose to ‘copy’ or ‘follow.’ You may lose substantially more than your initial investment.
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