5 Quick Steps To Avoid Mistakes when invest capital in etoro

 

Broker Account Summary

Firstly let me summarize a few technical facts of eToro Web Trader for you to make a brief look at its broker function as follows;

- Broker Type: Market Maker

- Traders From USA:Yes / Islamic Account:Yes / Free Demo Account: Yes

- Trading Platforms: OpenBook / Mobile / WebTrader / MetaTrader 4 By Meta Quotes

- Account Currencies: USD / EUR / GBP

- Minimum account size: $50 / Minimum lot size: 0.1 lot / Minimum Trade Size: 10000

- Leverage: Maximum 400:1

- Spreads (pips): EUR/USD3, GBP/USD4,  USD/JPY2

- Payment options: Credit & debit cards, Neteller, PayPal, Skrill, Wiretransfer etc.

- Fee & Commissions: Margin Interest:No / Depositing Fees:No / Withdrawal Fees:$5-$25

- Scalping:No / Hedging:Yes / Free Demo Account:Yes

- Trading Tools:

Stop Order:Yes / Limit Order:Yes / Market Order:Yes / Trailing Stop Order:Yes / OCO Orders:Yes / One Click Trading:Yes / 24hr Trading:Yes / Charting Package:Yes / Trade off Charts:Yes / Streaming News Feed:Yes / Email Alerts:Yes / Mobile Alerts:Yes / Telephone Orders:Yes Personal Account Manager:Yes

- Supported Languages:Arabic, English, French, German, Italian, Russian, Spanish

- Customer Service By:Newsletter, Call Back, Phone, Chat, Email

- Customer Service Hours:24/5

5 Quick Steps 

The sign-up procedures are very straightforward and only once you decide to invest with real money are you required to provided a copy of your passport/id card and proof of residence. 

1) Visit eToro Site to Create Your Free Account  

Firstly, click HERE to get you brought to the eToro site as below;

  

Before you sign-up, you may want to watch the short video first by scrolling down a bit (you will find it as below);

Then, go back to the sign-up part to create your Free account by just fill-in your "User Name", "Password" & "e-mail address".

2) Select Trader To Make Copy Trading

Immediately after you sign-up, you will be navifgated My Feed page as shown below. Suggest you watch the video which explains most of all you need to know for starting up;

 

At this stage, the most important video section is the process of selecting the trader to copy and how to copy - I'll issue an article focusing on How To Select The Best Trader To Copy separately though in the meantime you may want to check Forex investors make money with etoro updated for 2015 just try out traders of your choice in Free Demo Trading.

3) Practice with Demo Management

It is paramountly important that Never Ever Strat Trading with Real Money. eToro offers an unlimited free practise account with access to all the same features as their ‘real-money’ accounts (including the CopyTrader functionality). When you command trading (including copy trading), you may be brought to the screen like below;

 

Then select "Use Virtual Money" tag in blue at the top of the screen, you will see the below screen where you can set set amount & stop loss condition with Virtual Money;
 

4) Risk Management Review

Review & remember the 2 basic risk managements. First risk management is setting your strategy & target which I personally believe should be conservative. People tend to be attracted by the amazing growth.  If you expect to double your account in 1 month, then you have to accept the risk of losing all your equity in that period as well. Be moderate & sustainable. Second risk management is the above 3). Never use your hard earning money from the start, use virtual money to test. Simply you invest $100 evenly in the traders you select (you may select 10 traders that would be $1,000 in total) and leave it for a few months to check the results or if you want to intervene do what you want. Remember, the demo account performs exactly the same as real account, thus simulate what you plan to do with real money in future, so if you intend to invest only $500 then set $500 in demo account rather than $1,000.

The good thing of eToro regarding risk management is its automatic risk setting as;

-          you can assign a maximum of 20% of your equity to 1 Guru

-          you can copy a maximum of 20 Gurus in your account

Also as the above screenshot indicates, you can control the Stop Loss for the trades you copy, so make the best use of its function by realizing your risk tolerance. Suggest you check the progress at least once a week. 

5) Before Trading

As the last step, suggest you watch the below video which gives you a good review of what you have learnt so far about eToro. It explains a bit more detail about Selecting Trader as well as a few administration matters like depositing, withdrawing fund and required ID etc . It's 30 minutes long video though worth watching before starting your trade.

Conclusions

In short, eToro offers good opportunities for even newbies to make decent profit passively. However, you need to carefully follow the 2 risk management points mentioned above. Never ever be greedy. Empirically, the successful invester aims at sustainable & conservative growth with low risk. Just selecting the most popular traders does not seem to achieve that objective. You need to develop a well-organized People-Based Portfolio to diversify the risk, keep monitoring the progress and re-evaluate your allocations periodically. By doing so, you will expect steady extra passive income from it and it's really worth trying.

History of a forex trading platform Etoro

Currency Trading! Manuals etoro easy £1349 Last Month on eToro, Working Just 4h!
How to invest in the stock,forex market using eToro (past one)