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Olympic Stocks to watch during Tokyo Games

From the World Cup, to the Super Bowl, to the Olympic Games, mega sports events affect stock markets. There is a strong relationship between the company-sponsors of such events and any unexpected turn while holding such happenings. Also, studies have shown that the stocks of companies linked to medal-winning athletes surge right after every success. 

 

The 2020 Olympic Games are being held in Tokyo, Japan between the 23rd July 2021 until the 8th August 2021 (yes, the 2020 games in 2021 – thanks COVID) under extraordinary circumstances. 

 

Unfortunately, there’ll be no spectators enjoying the unique experience and Olympic spirit. Instead, there will just be empty stages and fields, which results in a tremendous economic loss for Japan. What’s more, COVID-19 restrictions, procedures, and COVID-positive athletes keep shuffling the cards.     

 

At all events, viewing both the stay-at-home Games and the Olympics-related stocks is quite intriguing. Already, the Japanese find themselves in the unlikely position of being top of the medals table, leading investors to look for trading angles.

 

Keep in mind that, as always, the gains can be short-lived, and even the surest thing can be a risky bet.

Olympic Stocks to watch during Tokyo Games

“The important thing in the Olympic Games is not to win, but to take part...”

“[and]…the essential thing in life is not conquering but fighting well”. Pierre de Coubertin, the father of the modern Olympic Games, summarised the concept of the Olympic spirit in one sentence. 

 

Of course, the Games have become one of the world’s most influential international marketing platforms since first being held in 1896 Athens. On top of that, there is a substantial economic impact for the countries hosting the Games. 

 

The following stocks are linked with the Games and are worth watching throughout the Olympics. But first, let’s see who’s taking part and fighting well and who had second thoughts.

 

Cisco (CSCO.O)

Cisco Systems trades under the ticker CSCO on the NAS.

 

The global networking giant was announced as one of the Tokyo 2020 Olympic Official Partners in 2016. Previously, Cisco first became an Olympic and Paralympic partner at the London 2012 games. Recently, the networking hardware company announced its participation in the Paris 2024 Olympic games. 

 

Unlike other companies, Cisco does not face a marketing dilemma and continues to provide full support and presence in the Olympics regardless of the exceptional circumstances. 

 

Stocks of the routers, switches, software and services vendor had gained 4.48% over the past month before the Olympics.

 

Toyota (TM.N)

Toyota Motor Corp trades under the ticker TM on the NYS.

 

Toyota engages in the manufacture and sale of motor vehicles and parts. The company signed on as an Olympic sponsor in 2015 as one of 15 global companies that make up the Olympic Partners (TOP) program. This sponsorship program is the highest level of Olympic sponsorship.

 

However, the Japanese carmaker and major sponsor distanced itself from the Olympic Games, deciding that they will not air Olympics-related TV ads during the Tokyo Games. 

 

The decision comes following frustration and lack of support on behalf of the Japanese public for the games as local COVID-19 infections surge.

 

Coming into today, Toyota stocks have gained 2.88% in the past month.

 

All in all, trading stocks is fascinating but, at the same time, requires personal growth and knowing how trading works. At Eurotrader, we share an interest and a common goal – to help you invest in your future self. So be a part of our community and open an account or try our risk-free demo to trade your favourite – Olympic-related or not – stocks.

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News

Eurotrader Group announces global rebrand and purchase of new domain

-International retail broker ramps up expansion with newly purchased domain for its South African entity

 

July 2021, London: Eurotrader Group has accelerated its expansion with the addition of a new South African-licensed entity and the acquisition of a new domain.

 

Building on its existing CySec-regulated entity, Eurotrade SA (Pty) Ltd is another step in the Group’s global growth. These major changes come as Eurotrader ramps up its creative efforts via a rebrand geared towards its millennial and younger audience. The rebrand has been launched via Eurotrader’s new domain, eurotrader.com, and the CySec-regulated eurotrader.eu domain. 

 

Eurotrader has also added to its product portfolio, with new arrivals including thousands of additional US, UK and European stock CFDs, therefore enabling fractional share trading too.

 

Commenting on Eurotrader’s ambitions for the year, Sergei Grigoriev, Executive Director, said:

 

“Eurotrader’s focus is to accommodate the needs of individual traders as well as those looking to explore copy trading or account management systems. In addition to offering the industry the lowest forex spreads, Eurotrader clients will have the opportunity to trade on shares and futures on the world’s leading exchanges. Having direct market access to such products will enable our clients to invest in publicly listed companies.”

 

Amid the rebrand and entity change, the company has also expanded its senior leadership team with the appointments of Patrick Murphy (formerly Head of Consumer Compliance at Paysafe) as Head of Global Compliance, and Nick Whitehead (formerly Head of Digital Product – Investments & Wealth at Barclays) as Head of Product.

-International retail broker ramps up expansion with newly purchased domain for its South African entity

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Blog

Top tips for choosing stocks

So, you’ve made the decision to trade stocks. Fantastic! But now, you have to choose your stocks, which isn’t as simple as you might think.

 

It’s like standing in front of a huge wedding buffet that has everything from elevated French hors d’oeuvres to sticky hoisin ribs—countless options – hard choices.

 

Unlike the buffet situation, there is a massive advantage in picking stocks: you have all the time you need to decide smartly. There is no hurry and no cause for distress; stocks are there forever – unlike the very popular Caviar canapés.    

 

There are several tips that experienced traders will give beginners on choosing the winning stocks. However, it’s up to you to decide which ones fit your style and trading perspective.

 

Let’s explore the best practices for cherry-picking your stocks.

Top tips for choosing stocks

“Eeny, meeny, miny, moe, catch a share by the toe”

Set your trading goals: Building a trading plan based on SMART (Specific, Measurable,  Achievable, Relevant, Time-Bound) goals will help you decide what you want and stick with it.

 

Inform your decision: Do your homework and learn all about stocks’ fundamentals. How does stock trading work? Which stocks are worth the investment in time and money? Explore news and trends and tried-and-true rules and strategies.

 

Pick an industry: Is healthcare what piques your interest? What about telecom or technology? The stock market consists of 11 (or 12, depending on who you ask) sectors/industries. Choose your favourite, then learn the industry’s leaders, trends and strengths.

 

Diversify your portfolio: While picking a specific industry may help you at the beginning of your trading journey, you should not forget that picking stocks from different countries and risk profiles (from safe blue-chip stocks to more aggressive options) may help you reduce the risk of holding specific assets. Also, bear in mind that trading experts suggest that your portfolio may contain low percentages of international securities.

 

Pick competitive companies: Choose companies that consistently beat the stock market and its peers. Explore how the company treats its dividends, its debt-to-equity ratio in line with the industry, and its long-term strength and stability. Some ticker symbols may be more attractive than others, but at the end of the day, only the most attractive will win.

 

Manage your risk: Build up stock positions with a minimum risk, and plan ahead for rainy days. Invest while taking into consideration a margin of safety. Remember that you should not invest money if you may need it within the next few days, months or even years.

 

Manage your emotions: Don’t overdo it. Celebrate your wins and embrace your losses. Learning how to control your emotions while trading is complex and needs self-discipline and openness. When you feel more confident with trading, you will then find it easier to identify psychological trading patterns and master the art of emotional control.

 

All in all, trading stocks needs personal growth and building a solid base. At Eurotrader, we empower, educate and make it easy for everyone to get their trade on. That’s why we offer a series of beginner’s guides to choose from. How about introducing yourself to stocks and learning the ropes?

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Blog

What does financial compliance mean for traders?

In recent years, regulatory agencies have developed detailed guidance to ensure that financial institutions will intensify compliance initiatives. As a result, there are more laws, directives and regulations than ever designed to protect traders and make financial markets sustainable. Financial institutions and trading brokers need to comply with such legal frameworks to guarantee a secure environment. Fortunately, most of them apply financial compliance with religious devotion. 

 

Regulators worldwide constantly monitor the markets and try to spot new types of risks to update their instructions accordingly. Apart from financial watchdogs and regulated entities, there is also a third party in the compliance scene: traders and their personal responsibility.

 

How can traders make a worthwhile contribution and protect themselves from undesired effects?

"Safety rules are your best trading tools”

Picture this: you’re on a mission to purchase the super-duper gadget of your dreams, but it’s a little on the pricey side. However, you’re in luck! You find a random online store where it’s being sold at a much lower price, so you buy it.

 

When it arrives, you rush to unwrap it, but you quickly realise it’s a bogus, knock-off version of the gadget you originally wanted to buy. So you go to ask for your money back, but you can’t get through to anyone from the online store. In fact, you can’t get through to the website at all, which seems to be down forever.

What does financial compliance mean for traders?

Sadly, the same sometimes happens with brokers. There are many out there which promise you the world in top trading conditions, but they are missing one crucial thing: regulation

 

A regulatory body monitors brokers to ensure that they do not manipulate the market. In the event that they do, the regulatory body will endeavour to catch them and impose consequences.

 

Trading with a regulated broker – i.e., one that is licensed to operate in a particular or various jurisdictions – ensures transparency and protection of traders’ interests. Moreover, as trading has a lot to do with risk management, opting for a regulated broker ensures a high level of risk mitigation

 

Regulated brokers hold segregated accounts, and they do not mix their funds with their traders’. So, for instance, in the unlikely event that a broker goes bankrupt, clients’ funds cannot be used to repay the creditors.

 

Another aspect of safe trading is that someone trading with a regulated broker can resort to the regulation watchdog and get the assistance they need to resolve the issue in case of an unsettled dispute.

 

Regulation ensures that brokers abide by the set rules and standards. Aside from the safety of funds and transparency, a regulated broker also abstains from any financial malpractices. 

 

As such, the trader’s personal responsibility lies in the fact that they should only choose licensed and regulated brokers to protect themselves and their trades.

 

Is my broker regulated?

 

In case you missed it, Eurotrader ticks all the boxes as it is licensed and regulated in several jurisdictions. With our experience and support, we enable everyone, including you, to trade fairly, responsibly and confidently.

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Blog

Why is copy trading so popular?

When entering new territory, it’s always reassuring to have someone with you that knows the field. For many, taking those first steps into the trading sphere can be a little daunting, but fortunately, it’s now easier than ever to learn directly from the experts.

 

Thanks to copy trading, new investors are getting a more confident start to their trading journey. As a quick recap, copy trading is just what it sounds like: it allows individuals to copy the trades of other investors.

 

Unlike mirror trading, copy traders are blind to the actual strategy (i.e. you watch the transactions, and not the layout of the process), but they can still gain experience by watching others trade.

 

Over time, copy trading has grown from being a trading method to a trending one. Today, more new investors are engaging with copy trading for its various perks, which help to give learners the best possible start.

 

So what is it about copy trading that has made it so popular?

 

Learning from the best

For new traders especially, copy trading can be a great way to see what makes good traders successful. With copy trading platforms, you can simply do what the experts do. In some cases, discussions will simultaneously take place on social media, so you can learn the whys and hows of each decision. This can be a really effective way for new traders to learn – and maybe become traders-to-copy themselves!

 

Of course, you might wonder what’s in it for the experts; usually, platforms will pay traders-to-copy when people mimic their trades.

Avoid rookie mistakes

By following experienced traders, new investors can learn to trade without making common beginner mistakes. There are many valuable lessons to be learned from knowledgeable traders, such as the importance of having a diversified portfolio, as well as how to think with your head and not your heart. 

 

Having said that, you must be mindful that an experienced trader is not a psychic (!), so you can’t be certain that each of their trades will be lucrative or risk- and mistake-free.

Saving time and effort

If time is money, then copy trading is a worthy investment. By bypassing the bulk of the work, copy traders can get started straight away, even with a limited trading knowledge.

 

For those who are eager to become an expert themselves, this free time could be spent reading up on copy trading blindspots. This includes understanding fundamental and technical analysis or learning to devise your own strategy. The added bonus of having copy trading experience is that you already understand the basic transactional framework of trading, so you can move on and flesh out your knowledge more efficiently.

Summary

Copy trading offers new traders a simple and effective way to get into trading, without excessive risk. For inexperienced traders, copy trading provides an option to learn while doing, while also avoiding mistakes that could cost them. What’s more, copy trading offers an easy route into trading that gives new practitioners a chance to do their research without having to halt their inclination to trade.

 

If you’re looking to get started with copy trading, sign up to a Eurosocial account today!