Trading and Investing Tips

Why do you need these trading tips?

  • The first steps you take on the eToro platform are quite important. So we’ve assembled our top trading and investing tips to help you familiarise yourself with all the different tools and features available to you. Here you can find solid principles for all the trading and social trading features on eToro.

Tips for trading on eToro

  • Choose your assets: Are you into stocks? Currencies? Maybe Bitcoin? Each asset class has its own advantages and challenges, so be sure to familiarise yourself with each one.
  • Be diverse: Any trader will tell you that the key to a low-risk portfolio is diversity. Spread your funds wisely across various assets and asset-classes.
  • Stay informed: Stay up-to-date with recent news and upcoming financial events. You can use the eToro Calendar for this, and also get our daily market analysis via email.
  • Pick a style: The way you trade can vary in relation to the amount of capital you have, your level of involvement, and other preferences. You can opt for the technical approach, which relies on reading charts and finding patterns, or the fundamental approach, which is more about trying to understand how an asset would react to a certain event or time of year.
  • Practice: When you sign up for eToro, you get a demo account with $100,000 in virtual money. Use it to familiarise yourself with trading before risking your real money. You can use this account both for traditional trading and for copy trading.

Tips for social trading on eToro

  • Find the right people to copy: Use the Discover People tool to find the best traders to follow and copy. Filter the results according to risk score, gain, country of origin, and many other categories.
  • Copy top traders: The CopyTrader™ system is a great way to automate your trading habits. If you’re less of a “hands-on” trader, or simply don’t have enough free time, copying an experienced trader, automatically doing everything they do in real-time, is a great option.
  • Learn about Popular Investors: Successful traders who gain a following can be accepted into eToro’s Popular Investor program. The program rewards these traders with amazing perks, which encourage them to share their knowledge and trade responsibly. If you’re a good trader, who shows good returns with low risk, you might be eligible for the program.
  • Timing is everything: When copying a new trader, read their profile and familiarise yourself with their strategy. Some have long-term strategies that can include losses along the way, with the aim of profiting later down the line – so make sure you know what a trader’s intended cycle is.

Tips for investing in CopyPortfolios™

  • Introduce thematic investment into your portfolio: Thematic investment is a great way to invest long-term and reduce risk. Read more about it on the eToro blog.
  • What are CopyPortfolios™: A new financial instrument developed by eToro. Each CopyPortfolio investment strategy contains various assets or traders and is constantly optimised by an algorithm, programmed to reduce risk and increase profit.
  • Know your CopyPortfolio: There are three types of CopyPortfolios:
    1. Top Trader CopyPortfolios, which group together successful eToro traders;
    2. Market CopyPortfolios, which aggregate various assets following a specific market strategy; and
    3. Partner CopyPortfolios, which are composed by some of the world’s most innovative financial service companies.
  • Think long-term: Lower risks usually mean lower yields. Therefore, if you invest in CopyPortfolios, remember that they do not offer quick returns, and are designed to generate profit over time.