The ability to compare stocks and charts, and truly understand them, is vital for trading and investing success. Here’s how to do it using the eToro platform!
Stocks and investing are a great way to accumulate wealth. There is a multitude of platforms out there to choose from, but one, in particular, stands out amongst the others, and that program is eToro. On eToro, you can trade in a variety of assets and currencies in order to diversify your portfolio and push it to its full potential!
One thing you need to understand when using eToro is how to compare stocks and charts. This is crucial to making good, informed trades and not placing your money into an asset that is destined to fail. In order to invest on an individual basis, there is a minimum understanding of the market required in order to achieve success, although once you have achieved this, there is no limit to how much you can earn! It can prove to be a steep learning experience, but once you get the hang of it, you’ll be well on your way to earning a lot of money.
Keep reading to learn more about how to compare stocks and charts on eToro.
What Is eToro?
eToro is a multi-asset brokerage company that incorporates social trading: think ‘trading meets social media’. Like many other similar platforms, eToro is primarily a platform that facilitates trading in real assets, CFDs, Forex and cryptocurrencies, amongst other assets. The feature that makes eToro unique is its social media-style platform that fosters a community of industry experts to offer advice and share knowledge. Through blog posts and shorter pieces, it is possible to learn from experienced users in just a short time! Traders can make their pages private or public and have bios that tell a little bit about themselves. It’s different from the traditional stock market, and its main goal is to make trading more accessible for all. With the copy trader function and a low minimum deposit, it seems that eToro is well on the way to achieving this goal.
The platform was created in 2007 and has been committed to promoting financial literacy. Now, with over 12 years as a company, it has managed to add new stock options and is valued to be worth over $800 million. Clearly, eToro is a merited and successful company that is a great place to start your investment journey!
How do you get started on eToro?
It’s fairly easy to begin trading on eToro; all you need to do is set up an account. When registering for eToro, you must put down a minimum of $50 for stock trading and a minimum of $200 for copy trading. The only exception to this is a demo account, which allows you to trade in fake money to get the hang of the markets and practice your trading before any real money and risk is involved. This is great for novice traders, as it eliminates risk whilst providing the opportunity for real experience.
The most important thing to think about when you start investing is that it takes money to make money, and using eToro is no exception to the rule.
Setting up an account is extremely easy on eToro. You simply enter your name and email, create a password and link your bank account. You then have to verify your identity by uploading an image of an approved ID. It’s as easy as that! Typically, accounts on eToro take less than a couple of days to approve and be ready for trading.
Now that your live account is all set up and running, you’re ready to start trading.
How to Compare Stocks?
A very popular feature on eToro is the ability to copy trade. Copy-trading allows you to see what experts are doing and copy their moves exactly. Whether that be trading or allocating, you would follow their lead. You can choose to allocate a percentage of your portfolio to trade in the same style as an expert, and proportional to them. For example, they may invest $1000 into something, but you may invest just $100.
Before deciding who to follow or what to invest in, you should assess the market and compare stocks, so you don’t copy the wrong investor. You can do this by looking at the trade market and copy traders, both found in your eToro account. You can also compare traders by a series of filters in order to find one that suits you. There are options to filter by risk, profit, and other factors to make sure you match up with the perfect trader.
This way you’re able to do a fundamental analysis of the market and top traders before moving forward. You should look for the growth potential, industry, and risk when comparing stocks to help you make a more well-rounded decision. By doing an analysis, you’re going to get an in-depth look at how the stock has performed over time rather than what it’s doing at the moment.
You can also copy a range of expert investors. eToro allows you to copy up to 100 traders, although just a few would be enough to keep your portfolio diverse. This mitigates risk but also allows you to explore options that may carry a higher risk, but reap a bigger reward.
In addition to comparing stocks, it’s equally important to understand and compare charts.
eToro has a ProCharts tool feature that allows users to view multiple charts simultaneously for better comparisons. You can access this feature in your eToro account by launching ProCharts, and you’ll want to pay close attention to the trend line. These lines fluctuate often and can be a good indicator of when to trade. Using this tool, you can measure which shares and assets are performing well, and which are set to decline based on previous market information. Informed trades are better than random ones, and are less likely to fall through. The only downside to comparing these options yourself if that it can be quite hard to get to grips with, and quite time-consuming. This is why the CopyTrader function on eToro is so useful; someone else does all the hard work for you!
This function also allows you to customize what to include on the charts and compare it with other markets and investors. It’s a great tool to help you to make better-informed trades.
Now You Know How to Compare Stocks and Charts
eToro can prove to be a very lucrative endeavour when you fully understand how it works. Knowing how to compare stocks and charts will allow you to navigate the platform better and get a positive return on your investments.
Visit our blog for more articles on eToro and to learn more about the passive trading system.
Thinking of Investing or Trading? Why not just copy professional traders!
My name is Joseph Moricca, I run Velox Investments and I am an Investor on eToro. I have used eToro for a number of years but did not realise the potential to make a solid return consistently until I started copy trading! If you want to find out how to make money online then read my Beginners Guide to trading on eToro. To start, Sign up to eToro through the link below and take advantage of the free demo account!
Other Useful Links for learning
- eToro Trading Academy
- Market information: The Motley Fool, The Economist, The Financial Times, Zero Hedge
Disclaimer: eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFD assets.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.
This guide is intended for educational purposes only and should not be considered as investment advice. The author and publisher are not liable for any losses or damages you may incur as a result of you following the advice given on this page. The etoro.com layout and content may change since this content was published.