ETORO SUCCESS GUIDE
The Guide for Succeding with eToro
One of the first thing an evolved investor must learn to be able to better invest is the attitude to maintain. When investing with eToro, the right mental attitude is only one. We’ll tell you what it is and why.
If a single data can tell you a story, two figures correlated can even reveal hidden secrets. EToro does not provide many, so you must learn to correlate those few made available to really take full advantage of your analysis and discover the deserving traders.
In the trading universe there are basically four categories of Trader, each of which seeks to profit from the markets in a particular way. To be able to invest with eToro you need to know what are these categories, know their strengths and weaknesses, and be clear what you can expect from each of them.
The asset allocation is a financial planning process and consists in translating the investor’s profile into key economic factors. Thanks to the process of asset allocation, the portfolio assumes its physiognomy, distributing resources among the possible assets. In this lesson, you have all the basic theory you need.
You are ready to kick off your investment in Social Trading with eToro, you have finally decided the strategy, the conformation of the portfolio, the investors to follow and the capital to assign them. You just have to connect them to your account. It might seems the most trivial thing to do, but there are different ways to do it. Ditto for when you decide to disconnect them. Always remember, there’s nothing granted.
Investing in Social Trading with eToro offers a double opportunity to gain. Each user can be followed and copied, even those who invest only copying other traders. If you are good in the creation of your portfolio you’re going to be copied by other investors, and by participating in the Popular Investor program you can be paid. Discover how best do it.
The Average Trade and the Exposure are two very interesting data about the performance of the eToro traders and the risks they take. However, those data are difficult to interpret. We have studied them thoroughly to let you know if and how they can be useful.
The drawdown is considered a key element in order to discover the riskiness of a trading and investment strategy. EToro displays this data in the right way, but the time frame on which is calculated makes it effectively useless. In addition to explain all the background, we went around the problem by creating a tool to calculate the real Max Drawdown.
It’s not enough to know what strategy you want to implement and what are the traders or popular investor categories you want to use. We must also know how to find them. EToro provides a good advanced search system, an essential tool that will allow you to search with precision the traders you want, avoiding all the background noise.
From theory to practice. In Social Trading with eToro your assets will be the traders and yours will be a People-Based Portfolio, a portfolio of people. This type of portfolio has its own rules and you need to think in a certain way to be able to build the best of it. We have mapped out a path to make everything as clear and easy as possible.
Your investment in Social Trading via eToro should not only be created, it should also be controlled and managed from time to time. Your money are moving and you need to know how to handle them. There are not only the technical aspects of the Fund Management, there are also and especially the psychological ones. Underestimate them can be a source of major difficulties in the development of your strategy.
This course is part of the contents reserved to the Gold Membership owners.
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