Table of Contents
Introduction
Investing in the stock market is a way to generate more income in the future. Due to the advancement in technology, platforms like eToro, have made it easier for people to buy stocks. In this article, we will explain how to buy stocks on eToro, and also give you some tips on how to choose stocks.
Creating an Account
The first step in buying shares on eToro is to create an account. First, go to the eToro website and look for the join button which is located at the top of the page. You will be required to fill in some basic personal information and to create a username and password. Once you have created your account, you will be required to present proof of identity by submitting a copy of your identity document and a utility bill.
Funding Your Account
You will first need to fund your account in order to start buying stocks on eToro. eToro offers a number of payment options, which include credit/debit card, bank transfer, and e-wallet. Select the method that is most convenient for you and then follow the guide on how to make the transfer of funds to your account.
Researching Stocks
It is always advisable to know what you are investing in before actually putting your money into it. eToro has a rich database to assist you in your decision-making process. You can get real time stock prices, stock historical prices, analyst recommendations and other information. It is wise to review the financial statements of the company, understand the nature of the business and the prospects of the company.
Building a Watchlist
When you have chosen the stocks that you would like to watch, then you can go ahead and add them to your watchlist on the eToro platform. This enables you to keep an eye on them and also get information about them when there is a change of status. Creating a watchlist is a very valuable tool that will help you know when to act as you make your investments.
Placing a Trade
When you are prepared to buy a stock, please go to the trading page on eToro. Look for the stock you want to buy and select it to view the trading information. Here you will be required to enter the number of shares you wish to purchase or the amount of money you wish to invest and whether you want to buy at the market price or place a limit order.
Setting Stop Loss and Take Profit Levels
It is very important to learn about the risks that are involved in the stock market before investing in stocks. eToro offers its clients the opportunity to set stop loss and take profit levels for their positions. A stop loss order is an order that closes your position when the stock price touches a certain figure to avoid incurring losses. A take profit order, on the other hand, is an order that closes your position once the stock price reaches a certain profit target.
Monitoring Your Investments
Once you have bought stocks on eToro, it is crucial to monitor your investments regularly. Watch for any news or events that may affect the price of the stock and change your strategy accordingly. eToro provides real-time data and notification services to keep its clients up to date.
Copy Trading
For the new investor or the one who does not want to actively manage his or her portfolio, copy trading is a tool that eToro offers. This service allows you to copy the trades of other investors on the platform and place the same trades in your account. You can check out the profiles of the most active traders, look at their tracks and records, and copy their trades by clicking on the button.
Managing Your Portfolio
As you go on with the stocks trading on eToro, it is crucial to monitor and readjust your investment portfolio. It is therefore advisable to diversify in order to minimize risk and therefore it is advisable to invest in stocks across different industries and countries. It is recommended to check on your investments and readjust the portfolio as needed.
Conclusion
It is possible to earn money through buying and selling stocks on eToro, as well as have a chance to own a part of the company and get potentially high returns. If you follow the tips described in this article, do your homework, and stay current with the news, you can make a wise investment and build a good portfolio. It is always important to know how much you can afford to lose and it is sometimes advisable to seek the opinion of a financial expert. Thanks for playing, come again!
