Should I copy the trade on eToro?
eToro App: Copying Traders - Beginners trading have a big problem, they are not familiar with trading financial products. Regardless of whether it is stocks, currencies, cryptocurrencies, index funds, ETFs or leverage effects. As I have already described in the big guide to eToro App, the "great advantage" of eToro lies in "social trading", or in an exact function of it, the "copying of trading profiles". This means that you can participate actively in the stock market as a beginner (but also as a professional)! Once copied, all financial products are traded 1: 1: stocks, cryptocurrencies, ETFs and index funds. You will learn what that means in this article!
Start in your browser or mobile, get the app: eToro.
How do I learn to trade? Methods
It used to be like this:
Trial and error.
Trial and error means that you take an active part in trading and learn that way, mostly through mistakes you make, i.e. losses. Today, you can "just copy" traders. Let's take a look at the function of “social trading” and the 2 ways or methods with which you can improve your trading knowledge (in addition to YouTube videos, books, etc.) directly in the app.
First the “classic method” of trial and error.
Trial and error: learning from mistakes
The classic way - The classic way is "learning by doing"! You hear about methods and strategies, you read about them, you try them out yourself. You usually lose a lot of money in the process. But that's okay, because (!) You only use money that you have left for trading. One of the most important rules!
Only invest money that you “have left over”
Because this is the only way you can stay calm, even if the prices slide into the red.
But you can also "copy profiles", observe traders and draw your own conclusions for your trading strategies. Your wealth increases passively if chosen correctly.
Before we “celebrate the action”, here's a look at a day full of red numbers! Loss, risk, “play money”, be aware of all these factors if you want to act. It can look like this in the morning.
Trading app in the browser (price losses):
If you can handle it, we'll move on!
Copy traders: modern investments
The modern method - Modern means in this aspect, copy the investment portfolio of a successful trader. This is exactly where the advantage of eToro lies. With this "copy feature" in social trading, you can easily copy the investment portfolios of other traders.
After copying, the app then triggers all actions exactly as the trader does. Accordingly, all financial products are bought and sold at the same time. As a result, your wealth grows and it is reinvested, automatically. The big advantage, your portfolio operates on the basis of the actions of an experienced trader. That reduces risk.
Social trading: copy investment portfolio and trader
Social trading is, among other things, a further step towards minimizing risk. Why? You do not manage your portfolio yourself and have to check the news stand, financial data, other stocks on a daily basis.
You are not giving away your money. You just copy the portfolio and all actions of the trader. In the eToro app you can view all movements and transactions in detail. In this way, in addition to your own learning, you can build up further, practical knowledge. Simply by checking daily which movements are triggered by experienced traders.
Before I get to the individual functions, here are my experiences.
My experiences: The first 3 months
I was bored at Christmas and this is where I tried eToro for the first time.
What I really liked was the extremely fast registration. Other trading apps often take days, banks even weeks. The entire registration process was over after 10 minutes and everything was verified after 30 minutes. Accordingly, I was able to start on Christmas Eve and copied my first profiles.
Gather 24/7 trading experience instead of hiring banks
In my experience, it is a nice feeling when you can rely on an experienced person for the first time when trading. PS: Yes, there are classic banks that do the trading for you, but here you have no real-time insights, you "only" get monthly reports. In the app, until you can be there 24/7, if you want.
For the first time, I didn't have to check the news every morning, someone else does. I just check the portfolio, compare the different traders and optimize every 14 days. That is, I change a few traders, sometimes just assets that have been assigned to individual traders.
This is what the app looks like (menu and watchlist):
Start in your browser or mobile, get the app: eToro.
History of wealth accumulation: comparisons
Another great advantage, which I find particularly good in this context, is that you can look at the wealth accumulation of traders throughout their history.
So I can not only look at what the current investment portfolio of the respective trader looks like, I can also look at how the individual months went in retrospect. When did the trader make a return, when did he or she make losses?
Comparability - Thanks to the simple and quick overview, I can compare different traders with one another. So I can easily decide which trader or investment profile I want to copy.
Find traders: instructions and overview for beginners
Finding Traders - Your very first step is to compare different trailers with one another. As I have just described, the overview in eToro is really strong. In the overview you can see the most popular trailers.
Filter - With the filter function, you can go even deeper. You can e.g. Looking for traders who have a relatively low investment risk, thus a lower return but stable and safer. But you can also choose traders who have a higher risk, e.g. because they invest in cryptocurrencies or because they trade with leverage. Accordingly, the profits are higher, but so are the losses - be careful!
But you can also select individual countries so that you can e.g. only follow traders from your home country who may then also invest in financial products you know.
This is what the overview of the trader profiles looks like:
Trade Profile: view investment portfolio, gains and losses
Within the overview you will then find the individual traders, with their investment portfolio and the history of their trading, that is, profits and losses looking back over the individual months and years. If you now open several tabs on your browser, you can easily compare the different traders and make your selection! Tip: Shortcut "Ctrl + Tab", or on Mac "CMD + Tab" to change tabs.
Spread investments - As always applies in trading financial products, the more diverse your portfolio, the lower the risk your investment is. Accordingly, you should also divide your assets among different traders here.
One trader may invest more in the American market, the other more in the Asian market and another a little more speculative with crypto currencies. Because of the mix, there is a risk of failure of a single product.
Another advantage - because your individual product is a trader, your investment portfolio is already broadly based. Most traders on eTore hold between 10 and 50 financial products. Usually stocks, of course.
This is how trading works: Traders copy
As soon as you have copied a trader's portfolio, the individual financial products are automatically bought / sold in the same ratio.
If you wait a few hours or a few days now, you will see that the first values will also be sold again. Traders usually do not hold individual financial products for years, but use the ups and downs of the prices to generate additional profits.
So after a few days you will also see the first evaluation of the profits and losses that your trader has reported. Since you are automatically copying his or her investment portfolio, you will have the same profits or losses that the trader has. In this way, your wealth increases step by step.
Reinvest - Your additional assets that were generated through profits will then be reinvested as well. So at some point you will trade 105% of your capital, 110%, 120% and so on. This increases your wealth and, as described at the beginning, you can passively and actively participate in trading.
Increase in profits through asset accumulation
Increase in profit through asset accumulation, simply calculated:
- Profit from 100% = 5% | 1,000 euros = 50 euros
- Profit from 105% = 5% | 1,050 euros = 52.50 euros
- Profit from 110.2% = 5% | 1,102.50 euros = 55.13 euros
Capital investment when copying: overview
The maximum amount that you can currently invest in a single trader is 2,000,000 US dollars, the equivalent of 1,680,000 euros. You can copy a maximum of 100 profiles per eToro app account. Trades in general are opened from $ 1. Therefore, the minimum amount per trader copy is $ 200, or EUR 168.
- Minimum deposit / profile: $ 200 / € 168
- Maximum amount / profile: $ 2,000,000 / € 1,680,000
- Maximum copies: 100 profiles
Should you want to withdraw money from your deposit, e.g. because you want to invest it, you have several options. You can stop the trader's portfolio immediately so that all financial products are closed and you can access your capital within 6 to 12 hours, depending on the opening times of the stock exchange. Of course, it takes longer on weekends due to the opening hours of the stock exchange.
If a single trader still has losses in the portfolio, you also have the option of only partially stopping the copying.
In the app you have these options:
- Add funds
- Remove Funds
- Pause Copy
- Set Copy Stop Loss
- Stop copying
- Write New Post
- View chart
Here is a brief explanation of all functions in copying the trading profiles:
Add Funds / Add Money
Here you add additional capital to an existing, copied profile.
Remove funds / withdraw money
With this function you can deduct open amounts (not invested). As a rule, this is 0.5 - 10% of the capital employed.
Pause Copy / Pause copying
When stopping, all items are immediately closed (sold). If you don't want that, you choose pause. No new trades will be executed now. So you could hold the portfolio and sell it yourself, step by step. For example, because you only want to sell individual items at first.
Set Copy Stop Loss
This is where you determine how much loss you accept. The standard stop loss (SL) is 60%. This means:
- Invested: $ 10,000
- Deposit loss: -4,000 $ -> sale
If the individual depot or copied profile falls below 6,000 US dollars, it is automatically sold. This "protects" you from even greater losses.
With "Stop Copying" everything is sold immediately. As described above, the sale lasts depending on which stock is traded on which paper (time zones). Read more about stock exchange opening times & time zones here.
Write New Post
Every trader has a profile and a news feed. As with Facebook, Instagram & Co. With this function you can write new posts, which are then displayed in the trader's news feed.
Here you can see the entire historical course of your investment with gains / losses in a curve.
eToro: Get to know the app
Shares, ETF, cryptocurrency (Bitcoin), ... costs, valuation + experiences - where do we start? Best here! eToro App - trading stocks, ETFs, cryptocurrency, you have already learned a lot about trading in my blog.
A lot of questions, of course: which app do you use, what do I recommend? So today I want to share my favorite trading app with you, eToro. 29.88% asset growth in 12 months, with low risk through "Copy People" and "Copy Portfolios" or up to 127.35% through active trading and trading strategies.
Get to know the app, fees and much more here step by step. Of course with all criteria of valuation, costs and all trading options, from stocks to ETFs, index funds, currencies, cryptocurrencies and commodities.
Start in your browser or mobile, get the app: eToro.
Plus the ultimate eToro advantage: You can copy successful traders! Keyword "Social Trading". In the end, you will know the app inside out for your first trades. Do you want to get started right away? Start in the browser or get the app:
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