@raoot1979 @TheTiwi - It’s interesting that you’ve both been drawn to eToro. They’ve certainly stumped up a huge marketing drive in recent years on platforms such as FB and Twitter.
Trading based on the “power of many” or individual traders is a novel concept but trading based on collective wisdom is probably the last thing you want to do with Forex, since the majority of traders are novices and make losses.
As for the “top traders,” there are a number or reasons why I’d be wary of this. For a start, many traders have been known to “crash and burn”, racking up a massive amount of followers and crashing out on a trade spectacularly, taking with them their followers. The accuracy of trade execution is another issue and novices will have their stop losses hunted, meaning that the broker will take advantage of the “spread” to momentarily increase the spread size if the market nears their closing position, triggering an early stop loss. However, many Market Maker brokers do this and there are ways to mitigate it.
Started with a demo and began reading up on charts, candlestick patterns and technical indicators. Lot’s of trial and error until I developed a system that works for me. The breakthrough really came when I started connecting with professional traders and developed a community in which we could teach each other advanced techniques and analysis.
There are two types of traders: Those who trade based on Fundamentals (news releases, economic forecasts, politics and general happenings in the world that might affect the markets), and those who trade based on Technical Analysis (reading prove movement charts, using technical indicators etc.)
I base my decisions on technical analysis but keep my eye on fundamentals. I dont use fundamentals as a reason to make a trade though, I use them as a reason to stay out of making a trade (e.g. the current crisis in Greece)
In terms of risk, I trade 1-2% of my account size at 1:1, meaning that my profit take and stop loss are set equidistant to where I enter at 1-2% profit/loss. Then I rely on my trading edge (around 65-70%) to consistently make a profit over time.