eToro – Easy Step-by-Step Guide to Succeed
Let me guess. You are looking for information about eToro because:
- You have already tried eToro but it didn’t work out as hoped and you can’t figure out why
- You are eager to start but you also realize you need to pursue the matter a little more
In both cases, you ended up in the right place. With this eToro guide you are about to discover step by step how to effectively use eToro: from the platform characteristics, to the best strategies to research and use the Popular Investors, to the people-based portfolio management, this guide is a mine of useful information, simple and easy to use.
With the InvestinGoal journey you started from the first introductory Investing for Dummies guide, then you discovered what is Social Trading, and you also passed through the guide which revealed the market that can let the magic happen, the Forex Market. Basically, you have received everything you need to finally start investing in first person with eToro.
So, let’s begin. First, let’s discover here what is eToro and its main characteristics.
You can even have a look at our New eToro Review, to understand how this company changed in 2015.
- Demo Practice Account
- The eToro CFDs
- The Markets Section
- Popular Investor Profile
- The Drawdown
- Best eToro Traders
- Your New Platform
- Trader Connection Form
- The WebTrader Platform
- WebTrader Trades Management
- Creating Diversified Portfolio
- Opening the Real Account
In this course, however, we will talk also about another market, or better to say of another trading tool, the CFD or Contract For Difference. The technology of this company is based on CFDs, and it’s thanks to them that eToro has been able to offer its investors the possibility to trade not only currencies, as for most other companies, but also a lot more.
Today eToro offers an advanced Social Trading service (especially after the launch of the eToro CopyFunds) in currencies, but also commodities, indices, single shares of listed companies, and recently also Bitcoin.
Opening an account means creating a personal trading account with the eToro (Europe) Ltd company and joining a community of traders and investors belonging to the same broker.
EToro was founded in 2007 (have a look at the wikipedia page) as an alternative broker to the usual stereotypes of the Forex market, with the goal of making retail trading and speculative investment simple activities, for everyone.
This was, and still is, the aim of its founder and CEO Yoni Assia.
The first strategy aimed at achieving this goal was to create alternative trading platforms, such as the controversial Forex Marathon or the Globe Trader. But it’s in 2010 that this company took the road that led it to be a true industry leader.
The eToro OpenBook allowed all investors to share information and, more important, operations and trading strategies. This way, beginners who do not know how, when and what to trade, could watch what was being done by others, being able to also discuss and ask for explanations.
Soon, eToro also added a copy trading feature called precisely Copy Trader, with which one could replicate automatically and proportionately the operations made by those who once were called Gurus.
Today eToro has made the last step in its evolution, becoming a more compact and integrated platform, thereby losing some denominations (for example the “OpenBook” for the social section) and simply remaining eToro (here you can find the full story in our eToro review and opinion)
EToro has taken an opposite direction relative to the other main industry reality, ZuluTrade. If the latter was born as a Copy Trading company and then it integrated the Social functionality, eToro was born instead as pure Social Trading company (perhaps they even invented it), and then it added the Copy Trading to improve its offer (if you are confused is because you don’t know the differences between Mirror, Copy and Social Trading).
EToro is the best choice for those interested in Social Trading as an opportunity to access information and knowledge of those more experienced traders and investors, in order to accelerate the learning curve, being also able to automatically replicate their operations.
By using the OpenBook the investor finds himself to all effects within a social network focused on topics of trading, investment and finance. Being able to easily talk and deal with thousands of other traders, with eToro the investors will unlikely feel alone and abandoned, as sometimes happens with normal brokers after opening your trading account.
To summarize, eToro is:
- free information and strategies
- knowledge and assistance from the community
- creation of a truly people-based portfolio
Why this Course
Even though eToro, and Social Trading in general, have actually decreased the barriers dividing most part of beginners from trading and investment due to lack of knowledge and experience, we must not make the mistake of thinking that this is enough to be profitable.
Opening an account with eToro is still a financial investment to all effects. Also, we are always talking about a derivatives market, where it is necessary, or rather essential, to know precisely what you’re doing, or you run the risk of losing your money quickly.
The eToro platform, the way in which the user can manage his money, the transactions, the financial leverage and margins, are perhaps unique in their kind. Anyone who has had only trading experience with the famous MT4 will be a little confused a first contact with eToro.
In this course we will explain in simple terms the particular style eToro uses to view and manage its Copy and Social Trading service, explaining the differences from the classical methods and the peculiarities.
The double face of Social Trading
In Social Trading everything is open to everyone, everyone can have their say, everyone can share their thoughts and opinions on what happened and their theories about what will happen.
There’s always someone who has an idea, a suggestion, a thought on everything, and it’s definitely great to be able to access all these opinions. But the real important thing, the only crucial to avoid to risk more than necessary is being able to have your own opinion based on clear data, statistics and performance.
You may not be able to determine whether the Dow Jones is really about to make a reversal, but at least you will have to be able to determine whether those who think and say these things really knows their stuff.
In other words, you have to be able to interpret the data and the performance of those that on the Dow Jones (or on any other instrument, currency, stock, commodities) have really invested and made trading, to see if they actually knows their stuff , and they are worthy of your trust.
Not always comments or votes of other people are sufficient to determine if one is worthy or not, because those who vote or comment may be little or no expert on the subject, nevertheless their comments might influence you or even mislead you, making you take bad choices.
When it comes to money, the key thing is to have the basis to make informed choices and avoid unnecessary or excessive risks. Social Trading, eToro traders and the community can help enormously in this process, but in the end it will be always you and only to make that decision and bear all the risks.
Better to do it with the right foundation. This eToro course is the right place to start.
Before we begin, to start with the right expectations, we really suggest you to read our post How to make money on eToro – The truth.
Now, let’s starts from the first lesson on how to open and especially manage your practice account, because yes, with eToro you can even start demo.