As one of the best social trading platforms in the industry,eToro provides users with a variety of trading tools to choose from in various markets。Learn how to optimize diversified markets to increase your profits。

Every day, a large number of novices join the financial markets to start their trading journey。Thanks to the development of the Internet and technology, access to learning materials and beginner-friendly brokers is easier than ever。

eToro is a very popular broker offering excellent trading platforms for most types of traders including beginners since 2007.。The platform is known for having 3000 + trading tools, covering a diversified market including stocks, CFDs, cryptocurrencies, forex, indices, commodities, ETFs and even NFTs。

Therefore, you can cleverly copy the trading service from theBenefit from eToro's diversified market:

A thorough understanding of the market segment。

Spread your portfolio wisely。

Let's dive into each tip in the sections below。

BrowseMarket segment of eToro

Just understandeToro's copy deal is not enough。In fact, traders also need to learn how to take advantage of eToro's replication trading in their diversified markets.。

eToro prioritizes the social aspects of their services by creating what they call market segments。In this section, traders can monitor every market and asset that can be traded on the eToro platform。

The market segment is displayed on the platform as follows:

The market segment is divided into upper and middle regions。The upper area displays a menu of various asset classes (cryptocurrency,ETFs, stocks, currencies, commodities, indices) and advanced filtering tools in the upper right corner。If you click on each asset category, more information will be displayed for trading tools such as:

Market: Displays the name of the stock along with their identification。For other asset classes, this column identifies the name of the trading instrument。

Change: Displays the percentage and spread of the price change, which is related to its reference price。By default, it shows changes from the previous day, but you can customize the time to last week or last month。

Sentiment: Shows the percentage of investors who hold a buy or sell position on a particular asset。

Sell and Buy: The two best prices to buy and sell that particular asset.。If you click on it, a pop-up window will pop up to place the entry slip。

For novices, traders can useCopyTrading by eToro。This feature differs from other brokers in that traders can copy the strategies of professional traders for free, without the need for fee-splitting。Therefore, 100% of the profit belongs entirely to the trader。For example, if Trader A, copied by Trader B, generates a 10% profit this month, then Trader B will also earn a 10% profit.。

The company is the world's leading social trading network.。因为eToro operates completely transparently, and every trader has valuable information on their eToro profile, so other traders interested in copying their trades can get help when creating their best portfolio.。

Another unique feature of eToro is its personalized social news feed。Just like on any social media, traders can post their updates on the feed, comment on other people's posts, and gradually create a feed that adapts to the trader's trading and investing interests.。On eToro's social trading platform, traders are also notified when traders write new posts and many other important updates。

Enter the market

If you click on each market instrument, the platform will provide an interesting social tool you can use, as it includes preliminary information on the nature of the instrument and allows traders to negotiate it。It also shows how other investors in the community negotiated those instruments and who was doing this。

At the top of the page, you can see several things:

Name and Stock Code。

Current price of the tool。

Change from the previous day's closing price, expressed as a percentage and points。

Use+ button to add it to your watch list。

Trade button to execute position。

Further down, there are four labels you can look at, and they'reFeed, Stats, Chart, and Research。Feed basically shows you all the recent discussions and updates about the tool。

You can check whether it has attracted interest from many investors or whether it has received positive reviews from other market participants, which can help you gauge the likelihood of investing in the vehicle。At the same time,Stat, Chart, and Research pages are dedicated to analytics, both technical and basic。

How to Diversify Your Portfolio

In copy trading, it is important to keep your portfolio balanced and diversified。This means that your portfolio should undergo strategic changes in order to minimize risk and survive various market conditions。

What you have to do is combine different types of investors, investment skills, risk levels and financial instruments so that you are ineToro's overall portfolio would not rely solely on a single investment。

It is important to note that diversification does not depend on the investment"quantity," but more on their nature and the correlation between。You must consider the positive or negative correlation between two or more tools, whether they are moving in the same direction or opposite。

If the positive correlation between components is too strong, then the entire portfolio may move in the same direction, which may result in losses at the same time。This means that the risk is actually increasing, which is not good。

On the other hand, if the negative correlation is too strong, the profitability of your portfolio may suffer because you may get similar profits and losses at the same time, so profits will be cut by losses, and vice versa。

Therefore, it is essential to focus on relevance so that the performance of each tool is truly independent and therefore diverse。

What you should do

在在The first step in diversifying your portfolio in eToro is to break down the overall risk of your portfolio by controlling its volatility and potential pullbacks.。

Volatility is the speed at which prices move。You can also measure the volatility of your overall portfolio from their sum。High volatility means faster profits, but it can also mean higher risk。

Although it puts you in a position where you can make a lot of money in a short period of time, if the market suddenly turns against you, you may lose a lot。

At the same time, a pullback is a loss of investment principal due to the underperformance of the financial instruments in your portfolio。A portfolio that is not diversified and unbalanced is more likely to pull back more because of the negative performance of the investment。

So the next step is to find the best investments that are likely to deliver the best returns。You must first protect your investment by ensuring that risk is manageable and that you can survive periods of market turmoil。

After that, look for the best opportunities that can be included in the portfolio and maximize profits as much as possible, but maintain the same level of risk。

While theories of correlations between instruments and their advantages have existed for decades, the concept of a human-based portfolio- an asset that is not based on instruments, but on a portfolio of people or traders - is still considered quite novel。eToro is one of the trading platforms more focused on people-based portfolio and social trading。

在在In eToro, you can diversify your portfolio in at least three ways:

1. Diversified trading styles

While there are many investors to choose from, you can categorize them based on how they operate, the strategies and tools they use, and how they operate in order to diversify your portfolio。

However, even though they are different from each other, you should also make sure that each investor is compatible and useful for being included in your portfolio.。

2. Diversified markets

Another thing you should pay attention to is the market。in this regard,eToro brokers offer a wider range of options than other trading platforms, as you can choose from investors who use completely different asset classes, such as stocks and cryptocurrencies.。

In addition, you must identify investors with good experience in a particular asset class and assign them to your portfolio。So the goal is to replicate different expert traders who have different strategies and bases, which may allow you to win several positions at once。

In addition,eToro has a special department where they bring together many tools and put them into specific groups to form CopyPortfolio。By choosing a portfolio, traders can invest directly in eToro's market group selection。

They categorize portfolios based on market segments, top trader choices, and research from their partners。

3. Diversified leverage

Leverage here is the leverage used to replicate the trading positions of investors in your portfolio.。The first thing to remember is not to overuse leverage as it can damage your portfolio。Set a specific limit and be consistent。

Another thing is to allocate leverage based on the operational characteristics of the investor's strategy, taking into account their strength, consistency and risk。

结论

Considering you're inWith a wide range of trading tools to choose from when trading eToro, you have to build a strategy that delivers the best return and the least risk。The goal is to maintain a diversified and balanced portfolio to increase your chances of survival in any market conditions。

It does take some time and practice to identify the best trading strategy for you, but as long as you follow these steps, you canBuild a successful portfolio in eToro。