This post is a review of eToro copy trader, and tips on how to copy the best traders on eToro. If you have questions or tips, join the live discussion on the comments section below and interact with like-minded traders.
Ever wanted to dive into stock, indices, commodities, and forex (foreign/currency exchange) trading, however lack the skill and knowledge in executing a successful and very profitable trade?
Yes, we may have that beginner’s luck at executing a few trades. The thing is, how do we maintain a very successful streak by somehow predicting that next sharp rise in the charts?
Certainly that is not that easy to do so without having expert financial “Wall Street” calibre skills. That is my issue as well. I wanted to trade and make a somehow handsome cash while relaxing on a beach. But I’ve already tested the waters of manual trading. Quite honestly, it didn’t work out well for me.
Turns out I was a very emotional trader, quickly responding to chart movements (a notoriously newbie mistake) as I’ve written in a previous blog post.
At the time, I really hoped there would be a game-changing trading platform that allows normal people to just automatically copy expert trades of expert traders. When I say expert, I meant those who are knowledgeable at what they do. Those who are able to deal with their emotions while prices plummet.
It’s actually a good thing there is eToro, the world’s largest social trading network with millions of active traders. eToro is a member of the Financial Conduct Authority (FCA) and Cyprus Securities and Exchange Commission (CySEC). The question is, what is my review of eToro? And how do we find and copy the best traders in this trading platform? Continue reading →
Manual forex trading (the act of making all your trading decisions based on your own research), for most of us, is a daily struggle. We’d have to always deal with the unexpected rise and/or drop in the value of our trades which in turn totally puts a blow on our well thought of strategy. We have been very vigilant not to be emotional when trading, but seeing that sharp, and very RED drop in our trades just makes us cringe and makes us want out of the game. All of these I have experienced as a forex trader and I have written a blog post about this (my experiences in manual forex trading) before. Do these sound familiar to you as a trader? Continue reading →
I’ve written about my investments on forex, equity fund, and the stock market, and I thought it’s important to discuss the difference between bull and bear markets for us to better understand and help us in setting our expectations when news outlets announce a bullish or a bearish market. Another excellent benefit of knowing this is that it will make you look smart during discussions with your boss and the executive team at the next company night out. Continue reading →
Whether you are a foreigner visiting the metro or a local planning a trip abroad, nothing beats having a handy contact list to find out which money changer buys the highest and sells the lowest currency/foreign exchange rates. This is especially true, more relevant, and more useful the higher the value of the currency is that you wish to change (since the difference and savings really wouldn’t matter if you’re just planning on changing a few bucks or so).
I’ve been in this situation as well, so I’ve created this contact list that you can easily refer to or save as an image on your phone or whatever (I am not endorsing any of the money changers below). This is to help you identify what the current average is and help you decide on where to have your money exchanged. Just take note of a few reminders when having your currency changed: Continue reading →
A. Analyze the market. You can try several different methods:
Technical analysis: Technical analysis involves reviewing charts or historical data to predict how the currency will move based on past events. You can usually obtain charts from your broker or use a popular platform like Metatrader 4.
Fundamental analysis: This type of analysis involves looking at a country’s economic fundamentals and using this information to influence your trading decisions.
Sentiment analysis: This kind of analysis is largely subjective. Essentially, you try to analyze the mood of the market to figure out if it’s “bearish” or “bullish.” While you can’t always put your finger on market sentiment, you can often make a good guess that can influence your trades.
Part 2 of 3: Opening an Online Forex Brokerage Account
A. Research different brokerages. Take these factors into consideration when choosing your brokerage:
Look for someone who has been in the industry for 10 years or more. Experience indicates that the company knows what it’s doing and knows how to take care of clients.
Check to see that the brokerage is regulated by a major oversight body. If your broker voluntarily submits to government oversight, then you can feel reassured about your broker’s honesty and transparency. Some oversight bodies include:
United States: National Futures Association (NFA) and Commodity Futures Trading Commission (CFTC)
United Kingdom: Financial Conduct Authority (FCA)
Australia: Australian Securities and Investment Commission (ASIC)
Switzerland: Swiss Federal Banking Commission (SFBC)
Germany: Bundesanstalt für Finanzdienstleistungsaufsicht (BaFIN)
France: Autorité des Marchés Financiers (AMF)
Singapore: Monetary Authority of Singapore
See how many products the broker offers. If the broker also trades securities and commodities, for instance, then you know that the broker has a bigger client base and a wider business reach.
Read reviews but be careful. Sometimes, unscrupulous brokers will go into review sites and write reviews to boost their reputations. Reviews can give you a flavor for a broker, but you should always take them with a grain of salt.
Visit the broker’s website. The website should look professional, and links should be active. If the website says something like “Coming Soon!” or otherwise looks unprofessional, then steer clear of that broker.
Check on transaction costs for each trade. You should also check to see how much your bank will charge to wire money into your forex account.
Focus on the essentials. You need good customer support, easy transactions and transparency. You should also gravitate toward brokers who have a good reputation.
Trading foreign exchange on the currency market, also called trading forex, can be a thrilling hobby and a great source of investment income. To put it into perspective, the securities market trades about $22.4 billion per day; the forex market trades about $5 trillion per day. You can make a lot of money without putting too much into your original investment, and predicting the direction of the market can be a real rush. You can trade forex online in multiple ways.
This article consists of three parts:
Learning Forex Trading Basics (You are on this page)
The type of currency you are spending, or getting rid of, is the base currency.The currency that you are purchasing is called quote currency. In forex trading, you sell 1 type of currency to purchase another type.
The exchange rate tells you how much you have to spend in quote currency to purchase base currency. For example, if you want to purchase some U.S. dollars using British pounds, you may see an exchange rate that looks like this: GBP/USD=1.589. This rate means that you’ll spend 1.589 dollars for 1 British pound.
A long position means that you want to buy the base currency and sell the quote currency. In our example above, you would want to sell U.S. dollars to purchase British pounds.
A short position means that you want to buy quote currency and sell base currency. In other words, you would spend sell British pounds and purchase U.S. dollars.
The bid price is the price at which your broker is willing to buy base currency in exchange for quote currency. The bid is the best price at which you are willing to sell your quote currency on the market.
The ask price, or the offer price, is the price at which your broker will sell base currency in exchange for quote currency. The ask price is the best available price at which you are willing to buy from the market.
A spread is the difference between the bid price and the ask price.
There will always come a time in our lives when this thought bubble pops up: “I need to have another source of income – not just income from my day job, but something that will make money work for me as well.” I mean, who doesn’t think about this?
So there I was, looking for other investment opportunities on the net when I stumbled upon suspicious ADs on FOREX/Currency trading depicting stay at home moms and travel junkies who left their day job promising huge income while just working in the comforts of your ‘comforts’. 😛
I also saw some forums discussing the science of FOREX (Foreign Exchange) or currency trading and how they were able to ride the highs and lows and also comparing which online forex broker is the best.
I’ve always been curious about currency trading because you trade based on the fluctuation of currencies compared to the stock exchange wherein you trade based on the performance of a company where you decide to invest in (not that I’m against stock exchange, it’s just my own opinion and I’ve never tried the stock exchange so I cannot comment on that yet). I thought I already new the basics, and I though I just needed to learn more on the technical part of the trading.
I decided to research more on Forex/Online Currency trading to find out if this investment option suits me well. I had a few questions on my mind: 1. Since I am not a financial expert, where can I learn currency trading the best way and in a way I can easily understand? 2. I know that there are many bogus brokers out there, how do i find out which is the legitimate one? 3. If in case I did find out who the ‘legit’ brokers were, how do I know which is best? 4. How much do I need to invest in order to have a ‘live’ account?