eToro Social Trading Platform

eToro is a little different to most brokers and another good option for beginners. It offers what they call CopyTrading, when you can opt to follow the trades of another member. They buy, you buy. They sell, you sell. They move their stops or change their targets, your account automatically updates to do the same.

There is a risk here that the traders you choose to follow could have a reversal of fortune, but if you spread your bank over a portfolio of traders… ie copy the trades of 8-12 proven traders… you can minimise your risk and still generate a very consistent return. And if one of them does manage to blow up, it won’t have a major impact on your account balance.

I’ve used this one myself in the past and had some excellent successes with copy-trading. These days I prefer a more hands-on approach trading my own plan, but I have a number of friends who swear by it. As always, just remember that past results do not guarantee future performance… so a conservative risk-averse approach will always yield better results in the long term.

Check Out the eToro Social Trading Platform

AVA Trade Platform Review

This is my main trading platform for all cryptos and forex pairs. It runs on the Metatrader platform, has very competitive spreads (FX equivalent of commissions), great liquidity (so you get your orders filled at the price you want), and I’ve never had a problem depositing or withdrawing funds.

It is a regulated broker, well established, operating in over 150 countries for the last 10 years. They offer fantastic support and training and a variety of trading platforms, including a web-based option for any time you’re away from your desktop.

You can start with as little as $100, though they have some excellent first deposit bonuses that make it worth your while to start with a larger initial bank… which isn’t a bad idea…

Your Starting Account Size

You don’t want to ever risk more than 2% of your account on any single trade… so if you start with $100 and apply strict money management, you’d only ever risk $2 per trade… Which means your wins would be quite restricted as well… maybe $5-$10 for a successful trade.

Realistically though… even with the best of intentions… most people starting small will end up risking a much larger portion of their bank on every trade… 10, 20 even 50%… which becomes a very hard habit to break later on.

You will do much better if you wait to start until you can make a more substantial deposit of at least $500, preferably even more, and then establish good money/risk management practices right from the start!

Perhaps what I like the most about this platform is their regular technical analysis which often identifies opportunities in currencies I don’t usually follow. Also the Autochartist software that’s included in the package is professional quality softweare not usually available to retail traders, and certainly not for free.

They also offer trading on the 5 main crypto-currencies at very competitive rates and margins. While most brokers are offering Bitcoin these days, very few have all these others, and personally I often to find more opportunities on those.

So even if you prefer to shop around, I encourage you to look AVA Trade over, and use what you see as your benchmark of what a good broker should be offering…

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Plus 500 Trading Platform Review

Plus500 offers CFD trading in Shares, Forex, Indices, Commodities and ETFs. I’ve been using their platform for a number of years and it is easily one of the most user-friendly I’ve encountered and I’ve always found it reliable and stable.

It was also one of the first I found offering CFD options for crypto-currencies. They also offer CFD trading for some 2000+ instruments across 20+ different markets worldwide.

The other big plus for me was the fact I could deposit funds from my PayPal account, which saved a bit of back and forth when I needed to make a deposit. Obviously you don’t want to be making too many deposits, so that isn’t such an issue, but I find it handy to have funds paid out to PayPal as well.

If you are just testing the currency trading waters, this is an excellent option to learn on. Unlike other platforms, with Plus500, customers cannot lose more than the funds they have available on their account. You can set up a Demo account and use it on any device while you develop your own trading plan.

You can download the software directly using the link below, or visit the website for more information…

Plus 500 Direct Download

View The Plus 500 Website

 

*** Your Capital Is At Risk. CFDs are leveraged products and can result in the loss of your capital. ***

Plus500AU Pty Ltd, ACN 153 301 681, AFSL # 417727, issued by the Australian Securities and Investments Commission is authorized to issue these products to Australian residents.

( Plus500 is not available to US Residents. )

Tips For New Currency Traders

Currency trading is possibly the easiest way to build your stock digital currencies, fast… but it’s also a good way to lose it all if you dive in unprepared. An even bigger risk is when you ‘get lucky’ early on and start to think you’ve got it all worked out…

You start to feel invincible and the temptation is to loosen stops, increase lot sizes and take bigger and bigger risks.

And quite often you’ll get away with it… for a while.

But rest assured that sooner or later, the market has a way of coming back to make you feel very, very human.

The thing is, almost every trader who blows up their account do so after a run of amazing success.

Don’t fall into that trap…

The better things are going, the more important your trading plan and money management become if you don’t want to become another statistic.

Whole books have been written on the psychology of trading and money management, so I won’t try to rehash all that in a single blog post, but I will share a few tips that might save you some pain. If you want ot dig deeper, find yourself a copy of Fooled By Randomness… essential reading for any trader in any market!

A Few Trading Tips To Get You Started…

Trade A Demo Account First. Everyone struggles with this… we all want to go live, especially if we are having some wins… but the process is invaluable as it’s teaching you trading patience.

Trading opportunities are like buses… if you miss one there will always be another one along soon after!

ALWAYS Trade With a Plan. If you don’t know you’re entry, your stop loss and your profit target, don’t take the trade until you do.

ALWAYS Trade With a Stop. It seems like common sense and everyone starts out using them religiously, but they are the first thing to go as your account balance starts to grow.

NEVER Move Your Stop. Decide your maximum risk before you enter any trade, and stick to it. If the trade goes against you, take the loss and move on.

ONLY Trade Funds You Can Afford To Lose. Again, common sense but I’ve seen plenty of people get into trouble charging up their credit cards, especially when they were eager to get back in after blowing up their account.

NEVER Risk More Than 2% Of Your Account On A Single Trade. That way you can sustain a run of 50 losses without blowing up your account.

The Trend Is Your Friend. Trading against the trend is higher risk and usually a sign of impatience. Most people will do better to wait out the retrace and enter in the direction of the trend.

A (Relatively) Simple Beginners Strategy…

If you are new to trading and you’re determined to trade cryptos, it’s safe to say that the long-term trend is LIKELY to be Bullish for most established currencies for the foreseeable future.

So a simple play is to look to buy on dips and hold the position long term…

Keep your lot size small so you can ride out any fluctuations and wait until the market moves well in your favour and then move your stop to a break even point.

Then look for your next entry…

Even with this approach, you want to have a trading context that tells you the trend is indeed up and the market is about to resume moving in that direction. Then you need a firm trading plan that identifies your entry point, your invalidation point (the price where you know you were wrong and it’s time to get out), and a logical profit target.

If any of those don’t mean anything to you, consider working though the following free training package before you risk your money!


Ready To Set Up A Trading Account?

We recommend AVA Trade. It’s a regulated broker with a proven 10-year track record. I offers competitive spreads, a generous welcome bonus and a great mix of platforms, free analysis, training and education. Even if you choose to shop around, take a minute to see what AVATrade offers and make that the benchmark you compare the rest too!

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