A trading plan seems to be a very basic thing in your trading process and yet because it is so simple many traders overlook its great importance. A trading plan should be a solid framework on how and when to execute trades, the size of positions, levels of stop-loss and take profit, the kinds of assets and markets traded, rules for trading and so on. Of course every trader can … [Read more...] about How to create a trading plan on eToro?
eToro platform offers a wide variety of trading indicators for you to choose from and it may be quite challenging to navigate amongst them and choose a few for your trading. There are two generally distinguished groups of indicators, leading and lagging, that differ in the way they are constructed and interpreted. What they are, how they differ and how you can use them in your … [Read more...] about Leading and Lagging indicators on eToro
Many times traders who observe a drop in price of an asset want to know whether this decline is a long-term one or it is just a temporary short-term movement. Why? Well, some traders would prefer to sell a stock before it continues to decline in price over a long time period but would rather wait over a temporary down shift if the price will get back on track reaching new highs … [Read more...] about Retracements and Reversals on eToro
What is the Moving Average Convergence Divergence indicator? MACD is one of the most effective and relatively simple momentum indicators used to identify, follow and evaluate the strength and direction of a trend in technical analysis. It is one of the most popular tools that can be used to identify points of trend reversal for an asset as well as spot entry and exit … [Read more...] about Guide to Using the MACD Indicator on eToro
One of the first steps to take in your trading based on price action is to distinguish whether the market is trending or moving sideways. These characteristics of a market are extremely important for your decision on when to open a buy or a sell position and how to set up your trading strategy. Below you can find a quick guide on these two types of market … [Read more...] about Sideways vs Trending markets on eToro