How to Invest in Stocks with the Trader Tier?

Advice & Tips / How to Use

How to Invest in Stocks with the Trader Tier?

There are many possible ways of using the Analytical Platform to achieve success in trading and investing. In this article, we are going to discuss one of the methods for buying stocks more in-depth. The prerequisites are the Trader tier subscription and an eToro brokerage account.

The Trader tier subscription allows you to see the list of the most undervalued and overvalued stocks from the S&P100 index for the next day and the next month according to our analytics. It’s up to you to determine which stocks you want to pick into your portfolio and what time horizon you think is the best for rebalancing. Once you have decided that, you can move on to your brokerage platform to execute the trades.

One of the many possible options is to choose the eToro broker for this task. It is a simple, user-friendly platform charging no fees for executing trades but you often end up paying a higher price for each share than at other brokers. Unless you are investing thousands of dollars into one single stock, the money you save on fees will outweigh the slightly higher price you pay for each share. If you intend to trade on margin or short sell stocks you might want to select another broker as the fees you pay on eToro associated with these operations are a little too high compared with other brokers. In general, it is a good platform for buying long positions without using leverage. One other thing to keep in mind when using eToro is that all the accounts are operated in USD. They are using lightly unfavourable conversion rates when receiving deposits (and sending withdrawals) in other currencies so if possible opt for depositing USD to avoid paying any extra fees.

Having both the Analytical Platform and eToro account set up, it is time to buy the actual stocks.

Working with Analytical Platform

Log into your Analytical Platform account first. You will end up right on the StockPicking Lab page where you can find the latest daily and monthly reports. For demonstration purposes, let’s say I have decided to buy 20 stocks with the highest score because those are the most likely to grow in value according to the analytics. I have decided to rebalance my portfolio every month so I pick the latest “Monthly” report here and click on the icon to see the full details of the report.

Analytical Platform – StockPicking Lab (PrtScr from the Analytical Platform)

According to this exemplary strategy I proceed by finding the most undervalued stocks under the “Long tickers” column.

Analytical Platform – Monthly report (PrtScr from the Analytical Platform)

I am going to be choosing the first 20 stocks from this column but you might have decided that your strategy is buying only the first 10 stocks or picking just a few out of the first 50 stocks for instance. If you intend to short sell any stock then you would be choosing from the “Short tickers” column as the stocks with the lowest score listed there have the highest chance of going down in price according to our analytics.

It is recommended to add your report to the “Favourite reports” section by clicking the “Mark as My Report” button. This will help you to remember when is the time to rebalance your portfolio again.

Analytical Platform – Monthly report (PrtScr from the Analytical Platform)

Working with eToro

As I already have my eToro account verified and funded I can now proceed to buy the actual stocks. In this example, I am going to be investing  USD 2000 into my strategy and I want to distribute the amount equally across all the stocks so I am going to spend USD 100 on each stock I have selected into my portfolio. Now I only have to copy the full name or just the ticker into the search bar in eToro and hit the “TRADE” button.

eToro Account – (PrtScr from main page, search)

We recommend executing the orders during trading hours to have your orders executed right away and to avoid high price slippage that otherwise may occur. In the next step, I am going to fill in the number of dollars I want to spend on this stock and hit the “Open Trade” button.

eToro Account – (PrtScr of next step before open trade)

The trade is going to be executed automatically afterwards. Now I have bought the first stock into my portfolio but I still have to repeat this process with the other stocks according to my strategy. After buying all the stocks I can look at my new portfolio in the “Portfolio” section on eToro to confirm that I haven’t made any mistakes.

eToro Account – Portfolio (PrtScr from jiri1987 account on the platform, eToro)

From here I can also close any of my positions. I would be closing and opening new positions in a month if the next Monthly report showed me some changes among the first 20 most undervalued stocks in comparison with those that I have bought for the first time.

It’s worth mentioning that eToro has a feature called “Copy Trading” allowing you to copy portfolios of other traders. If you would like to buy the 20 most undervalued stocks every month according to the StockPicking Lab, you could simply copy the trades of the CEO of the company behind Analytical Platform who has been using this strategy since September 2021. You can find him on eToro under the nickname “jiri1987”. Following him will help you save time on buying and selling stocks according to the latest report every month.

eToro Account – Portfolio (PrtScr from jiri1987 account on the platform, eToro)

And that is the whole process. Now you know how to use the Trader tier and eToro account to start investing in stocks. You can either come up with your strategy or simply follow the trades of our CEO with the presented model strategy. It might be difficult to go through the process for the first time but after you get more familiar with both Analytical Platform and eToro, this routine might only take you about 10 minutes every month.

Feel free to contact us for more information about the Analytical Platform or the eToro broker.