What's the best Stock trading Platform/App?

How to trade Stocks with eToro?

By holding stocks known as stock investments, you will have some rights as one of the owners of a well-funded and financially sound company. Equities are popular because they have a lot of up-to-date information from companies and various media outlets, and traders can use this information to avoid equity risks.

You can trade stocks as CFDs using etoro’ trading platform and eToro’ app, which are both intuitive and non-unique.

These types of derivative products can be traded favorably with tools and trading conditions such as free stop-loss guarantees, profit-taking, leverage and avoiding negative balances at the time of trading available on eToro platforms and apps. eToro is also one of the few brokers to offer CFD stock trading services on eToro’s own platform and app without slippage.

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What are CFD stocks?

CFD is an abbreviation for Contract for Difference. By using this special financial trading method, you can trade with the difference due to the difference in selling price without delivering in kind. The main advantage of CFD trading (regardless of the nature of the underlying asset) is that you can benefit from the benefits of both rising and falling stock prices. If you own shares, you will only be able to profit from rising stock prices. First, there are some risks and trading considerations to consider before trading CFD stocks.

1. It is important to study the product characteristics well, to deepen your knowledge and understanding, and to invest – if you are a beginner in trading, you are traded to protect yourself from the situation where your financial situation deteriorates. It is important to have a better understanding of the characteristics of the financial products you are using and the platform you are using.
2. Select Stocks – Some stocks have higher volatility than others. Depending on your investment strategy, this high volatility can have advantages or disadvantages.
3. Determine how to trade – CFDs allow you to anticipate and trade both positive and negative price fluctuations. Also, if you hold a stock for a long period of time or during the day, you need to determine the trading period.
4. Risk Management – ​​To ensure that your investment goals are met, make sure you manage your risk thoroughly by knowing and clarifying your target profits and acceptable losses.
5. News-Get the latest news from a variety of locations, including social media for businesses and executives. The eToro app features an integrated live news feed to inform and share with you whenever updates are updated.

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Differences between Stock CFDs and Stocks

With CFD stocks, you can trade by predicting market prices and buying and selling the underlying assets of the company of your choice, without having to deliver in kind. The value of a stock fluctuates in relation to the value of a company that provides the basic information for speculation in the stock market. The traditional way to invest in a CFD stock market traded on a non-exchange is to buy the company’s stock on the stock exchange and own the underlying assets.

When trading CFDs, you can also use a variety of trading terms that are not available when trading stocks (in-kind trading) on ​​the stock market. By utilizing these trading conditions, it is possible to prevent the expansion of losses due to temporary volatility and sudden market fluctuations and to avoid risks. For example, stop-loss is a pre-set stop-loss line rate with a preset range of losses to protect yourself from risk so that you do not incur unexpected losses due to sudden market fluctuations. It is effective for risk countermeasures because the settlement can be completed when the payment is reached. Take profit is also one of the effective trading strategies because the range of profit amount is decided in advance and it is automatically settled when the rate is reached, so the price reverses after the market price where profit is expected. You can avoid the situation where you could not complete the transaction within the initially expected profit amount. Please note that stop-loss and profit-taking restrictions are guaranteed only on eToro trading platforms and apps.

In addition, eToro online trading platform features zero slippage. Slippage is the difference between the price when an order is placed and the price when the order is actually filled. eToro is the one and only broker that guarantees slippage-free stock trading on its own platform and always provides price transparency.

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Features of Stock CFDs

• While it has the advantage of using leverage to scale up your investment, it also has the potential to increase your risk.
• Benefit from both rising and falling prices.
• Low volatility over a long period of time.
• Buy and sell immediately.
• You can use online trading and risk management tools that are only available when trading CFDs – Stop Loss to reduce losses, Take Profit to secure profits, Negative Balance Protection, Leverage (Multiplier) Settings (on the eToro platform).

Features of Traditional Stocks

• Leverage (magnification) is not available.
• Profit only from rising prices.
• It also reduces volatility over a long period of time.
• A transaction is a contract between a buyer and a seller.
• There is no similar tool available when buying or selling traditional stocks.

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What affects the stock price?

When trading CFDs, you can also use a variety of trading conditions that are not available when trading stocks (in-kind trading) on ​​the stock market. By utilizing these trading conditions, it is possible to prevent the expansion of losses due to temporary volatility and sudden market fluctuations and avoid risks. For example, stop-loss is a pre-set stop-loss line rate with a preset range of losses to protect yourself from risk so that you do not incur unexpected losses due to sudden market fluctuations. It is effective for risk countermeasures because the settlement can be completed when the payment is reached. Take profit is also one of the effective trading strategies, because the range of profit amount is decided in advance and it is automatically settled when the rate is reached, so the price reverses after the market price where profit is expected. You can avoid the situation where you could not complete the transaction within the initially expected profit amount.

In addition, scandals involving companies, executives, and even founders can cause stock prices to fluctuate.

Symbolic are the fall in Facebook stocks caused by the Cambridge Analytica scandal, the negative impact on investors and shareholders triggered by Elon Musk’s tweet (of course, the fall in Tesla stocks), and attempts to manipulate EPA test results. This includes the infamous Volkswagen emissions scandal called Diesel Gate, which was exposed by the media.

Company stock may also experience price fluctuations during the announcement of corporate behavior.

• Mergers and acquisitions: This is when one company buys another and they merge. If the market sees this as a plus for the company, the stock will go up, and vice versa.
• Dividend: This is the amount of profit paid to shareholders from a portion of the profit that the company earns.
• Corporate News: Includes new product announcements, changes or resignations of executive officers and directors in the company, and asset purchases.

The amount of data and news available when trading stocks is enormous. Most listed companies report their revenues quarterly, and many major media outlets handle information related to these large companies.

The dates of the earnings announcements are public, and most financial media (such as Bloomberg) make a thorough forecast of the profits of the world’s largest companies up to the earnings announcement season.

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Diversified investment in stocks

An even greater benefit of trading stocks, when compared to other markets, is the ability to diversify. The stock offered by eToro spans different industries such as technology, retail, entertainment, e-commerce and automotive. Certain industries may be affected by events that affect stock prices, and others may be unaffected. For example, the trade war between Central America has shocked multiple industries such as agriculture and automobiles, while certain industries such as aluminum manufacturing have actually grown as a result.

By diversifying your portfolio, you can stabilize volatility and use it for risk management. This is basically called “hedge”, which reduces the impact of a stock price plunge and avoids risk by “supplementing” one stock with another stock when it plunges, and is frequently used by institutional investors.

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Create a portfolio with Stocks

Most investors trade in different combinations of financial products, depending on their strategy, risk appetite, and financial goals. Now, let’s face up without being bearish, most investors aim to generate the best returns for the lowest levels of risk in the shortest amount of time.

Motivations and goals may be simple, but processes are not – all areas of economics are deeply involved in this very subject, called modern portfolio theory.

With regard to investment, there is no perfect solution or reliable way to succeed, and it is effective to consider the risk balance for returns.

When diversifying, you need enough stock to stabilize volatility, but not so much that you can no longer monitor the performance of individual stocks. The more shares you hold, the greater the burden of obtaining and managing the latest information. You should also consider how long you hold your shares, as frequent portfolio changes can incur immediate costs.

Another drawback of short-term trading of stocks is the loss of the benefit of long-term normalization (or averaging) of volatility.

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The best way to manage Stocks

You can also day trade the stock market. Like other financial instruments, stocks fluctuate during market openings and duplications.

Highly volatile financial instruments can bring more profits, but they also carry more risks. Rapid price fluctuations are not only rising but also falling. This can be a source of anxiety for inexperienced traders.

Of course, stocks are not affected by traditional trading strategies, such as buying at a low price and selling at a high price, or finding a company that is always performing well in the market. Although it is possible to trade stocks only, many traders and investors use stocks as part of a more diverse portfolio.

When trading, a great way to manage risk is to gain knowledge. Equity traders have access to vast amounts of basic and technical data. Stocks are the most popular way to invest. Market news websites such as Bloomberg and The Wall Street Journal have a thorough stock market and some offer notable recommendations to public companies.

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How to trade stocks on eToro?

eToro offers a wide range of stocks in a variety of industries including automotive, technology, banking, telecommunications, cosmetics, pharmaceuticals and hospitality. Different industries and companies move differently. Before trading, it is important to have a good knowledge of the company or industry.

Decide what to trade and when

First, determine the stock of the company you want to trade. Performance can vary significantly from different industries and even companies within the same industry. Every market has a moment of high volatility. Some traders trade during these periods, while others prefer to trade during a more predictable period.

Monitor current price changes

Since the market is constantly moving, it is very important to closely monitor the current price changes you are trading. This is even more important when trading short-term trading. This is because stocks are generally considered to be less volatile in the long run.

Start a transaction

Whether you are using the eToro platform or the MT4 platform, you can complete a transaction in just a few steps. Determine the transaction amount and the amount to be risked (considering leverage), and consider whether the price will rise or fall. If you think the price will go up, say “buy”, and if you think the price will go down, say “sell”.

Exit strategy

Once you have a strategy and determine your risk appetite, potential gains/losses, and entry points, you need to close the transaction. Making big moves can cause you to lose potential profits or even worse.

eToro has a hand-picked list of the most exciting, interesting and dynamic stocks on the market. Choose from stocks in the automotive, energy, fuel, technology, e-commerce and hospitality industries. This allows customers to create the optimal portfolio to reach their goals.

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