Investing in financial markets can be an intimidating prospect for many, especially those new to the world of trading.
However, with the advent of online trading platforms, such as eToro, investing has become much more accessible and user-friendly.
eToro is a leading online trading platform that offers investors a simple and convenient way to trade in a wide range of financial markets.
One of the standout features of this is its “CopyTrader” function, which enables investors to automatically copy the trades of successful and experienced traders on the platform.
This means that even those who are new to trading can start investing with confidence, as they can benefit from the expertise of more seasoned traders.
For beginners, the CopyTrader function can be a game-changer. They can simply choose to copy the trades of traders who have a proven track record, and then sit back and watch as their investments grow. As these traders are chosen based on their success, beginners can be sure that they are making informed and profitable investments.
Another advantage of eToro is its focus on long-term investing. Unlike many other trading platforms that prioritize short-term trades, it encourages its users to build a diversified portfolio and think long-term. This approach has proven to be effective, with many traders achieving significant returns over the long-term.
Investing for the long-term is important because it provides stability and reduces the risk of significant losses. With a diversified portfolio, investors can mitigate their risk, as their investments are spread across a range of assets, instead of being heavily reliant on a single stock or market. This approach can also help to ensure steady returns, which can be reinvested over time to grow wealth and a steady income stream through dividends.
In addition to its CopyTrader feature and focus on long-term investing, eToro also offers a wide range of markets for traders to choose from.
These include:
Stocks
Global Stock Markets
From BP in the UK’s London Stock Exchange to the heavyweights above in the New York Stock Exchange in the US, to Baidu on the Shanghai Stock Exchange in China, there are thousands of stock choices to choose from, and thanks to time zones, when one stock market closes, another one is usually open.
Currencies
Global Forex Markets
Another aspect of trading and investing is currency pairs. Though this is usually more associated with day trading due to high leverage being used to take advantage of daily movements. By CopyTrading a suitable Trader on eToro, you can take advantage of their experience and automate your currency trades.
Crypto
Global Cryptocurrencies
No matter your experience in trading, you’ve very likely heard of Bitcoin and all of its cousin coins. There are countless tiny coins and many huge cryptos, and although you may think you’ve missed the boat, there is still a huge amount of movement in the daily, weekly, monthly, and even yearly movements. Again, leave it to an experienced Trader who uses Crypto as part of their portfolio and risk management and you stand a better chance of making profit from the crypto coins moving around in value.
Commodities
Global Commodity Markets
From oil to soy beans, trading on commodities is also available on eToro.
Whether you want to trade agricultural items or precious metals, if you’re new to trading you really are better off CopyTrading a professional and learning at the same time.
There are many other trading options on eToro. this is just the tip of the iceberg.
As with all Trading and Investing, it is important to bear in mind the following:
Trading for Yourself
- If you are prone to gambling or have an addictive personality, consider if this is a good revenue stream for you. There are checks and balances but you may be better off with trying our other revenue streams.
- Only use money you can afford to lose. On this basis, avoid using credit cards or loans to make investments. You’re off to a losing start as you need to make the difference in APR alone to break even…
- Don’t overtrade. This is easily done by the best of us and should be avoided, if only to not allow trading fees to eat into profit!
- Try to build a diverse portfolio to spread the risk. This is hard to do with a small budget but important nonetheless, as it reduces and absorbs the risk overall when big movements happen.
- Whether you’re new to this or not, make use of eToro’s virtual account first. This allows you to practice on live markets without risking your own captial or precious money.
CopyTrading a Trader on eToro
- As much as Traders on eToro are professional and have a lot of experience, they are still people. Some can cave to pressure when copiers are asking questions and demanding answers, even when the Trader knows best and has laid out the strategy.
- Past performances do no guarantee future results. When I first discovered eToro, I followed some very good traders with above 10000% profits across their portfolios. Turned out when the Crypto wave imploded and the markets became unpredictable, they didn’t know what to do. They sat on trades and soaked up the figures! Check their stats and look into their history during tumultuous times. It’s all there in the data.
- Do your own research. Research the Trader and look into the stuff they trade. It’s in their best interest to convince newbies to copy them, it’s in your best interest to make sure they’re as good as they think they are.
- All of what applies to trading for yourself applies to copying a Trader. Only use money you can afford to lose, trades can go down in value as well as up, etc.
- Nothing is guaranteed to make profit, no matter how good it looks. Always bear this in mind and plan accordingly.
So, why should you consider using eToro as a beginner? Here are some of the key benefits:
- Accessibility: With its user-friendly platform and intuitive interface, eToro makes it easy for beginners to start trading.
- CopyTrader: The CopyTrader feature allows beginners to learn from more experienced traders and benefit from their expertise.
- Long-term focus: By encouraging long-term investing, it helps its users build a diversified portfolio that is more likely to achieve sustainable returns over the long-term.
- Wide range of markets: With eToro, you can trade in a wide range of markets, including stocks, commodities, currencies, and cryptocurrencies.
- Social trading: eToro is a social trading platform, which means you can connect with other traders and learn from their experiences.
In conclusion, eToro is an excellent choice for beginners who are looking to start trading in financial markets. With its accessible platform, the CopyTrader feature, and focus on long-term investing, eToro offers traders everything they need to start investing with confidence and achieve success over the long-term.