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How to Choose the Right Tool for eToro Forex Trading
When trading the financial markets, one always faces the dilemma of whether to enter a trade or pass on it. Some forex traders use their “gut feeling” to make this important decision. This instinct or intuition that some feel they have is more-often-than-not based on two principle emotions: greed and fear. Greediness will push traders to open a trade, while fear will hold them back. In either case, traders – regardless of their experience level – should use more than their gut feeling to make these decisions. More knowledge is required to have a sound trading system to rely on in the forex market. As a trader, you have to know when to apply the right trading tools. This depends on the type of market being traded.
Trade Markets on eToro
There are hundreds of different financial assets to trade on eToro, across several categories: commodities, cryptoassets, currencies, indices and ETFs. Each asset class has its own characteristics, and can be traded using a variety of investment strategies. Some positions on eToro involve ownership of underlying assets, such as long (BUY), non-leveraged positions on stocks and cryptos. Other employ CFDs, which enable a variety of options, such as leveraged trades, short (SELL) positions, fractional ownership and more.