Understanding market fundamentals and factors that that affect price trends of your traded assets is one of the key pre-requisites of successful trading. This, of course, includes understanding and knowing how to implement basics of trading and strategies, but also constantly staying updated on the most recent macroeconomic news, company announcements and performance reports, political and social events and so on, and knowing how to use them in your investing process. eToro offers several supporting instruments to help you in this process. Below you can find an overview of some of them.
(NOTE: Before we continue, we have to give a disclaimer that the trading products offered by the companies listed on this website carry a high level of risk and can result in the loss of all your funds. CFDs are complicated instruments that are never guaranteed to provide you supplemental earnings. In fact, Around 68% of all retail investors experienced a loss while trading CFDs. Make sure to keep this in mind before attempting to use the eToro platform yourself. All the information found on this website is not official trading advice and all practices shown are referenced for the use of the Demo account only.)
eToro Trading Tools
eToro provides various great trading tools that can greatly assist your monitoring, analyzing and trading process. The platform provides several useful indicators, as well as overviews and advices from analysts.
Statistics, Charts and Research Tabs
eToro provides asset-specific information that you can use in your trading process. To access it, choose an asset, for example a stock you want to consider (below we use the example of Tesla shares), and here eToro provides you with quite a substantial information on the its historical performance, overview of the company the asset is related to and other valuable statistics. Under ‘Stats’ you can see key company indicators, such as the P/E ratio, Revenue or the EPS, as well as an overall company profile. ‘Charts’ with price data are also provided for each instrument traded in the platform, with more than 70 technical indicators available on the platform to be used. Finally, the ‘Research’ tab will provide you with analysts’ consensus, rating and the consequent price target, which are incredibly useful for you trading process.
There’s certainly quite a large volume of information to be analyzed, so choosing which aspects to focus on maybe overwhelming and depends on your trading preferences and investment time horizon. It is a good idea to familiarize yourself with trading strategies and tools, refer to some explanatory tutorials to understand how to best implement the available volume of data on asset in your trading process.
Political, economic and company news greatly affect financial markets and are incredibly important in trading, in particular short-term investments. This could include, for example, changes in interests rates, industrial changes, political announcements and so on. Staying updated on global news, understanding how they will affect asset prices and learning to implement them in your trading is one of the key tools needed for successful performance. It is also vital to understand which news to focus on, as some markets are more responsive to certain macroeconomic news than others; for instance, country specific news may affect the currency pair of the country you are trading to a relatively greater extent than some other global changes. eToro provides a selection of news and market updates on its ‘News and Analysis’ page. These include market specific updates, for example the most recent outlook on the cryptocurrency market, macroeconomic news, political updates and their impact on the financial market as well as the news about the platform itself. The news page can be conveniently navigated using multiple tags or topics.
You can also check out updates provided by other traders on your personal ‘News Feed’ page. Here you can find useful information shared by fellow traders, including specific financial information, new or relatively successful strategies used, links to video tutorials, overview of their own achievements, useful tips and tools for trading (such as overviews of relevant financial ratios) and so on. Do bear in mind that following the advice of other traders nevertheless exposes you to capital loss risk, while learning trading strategies and understanding market fundamentals yourself is incredibly important still.
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eToro is a multi-asset platform that offers both investing in stocks and crypto assets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% 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.
Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.
Copy trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorized and regulated by the Cyprus Securities and Exchange Commission.
Cryptoasset investing is unregulated in some EU countries and the UK. No consumer protection. Your capital is at risk.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity-specific information about eToro.
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