A few years ago I wrote an article about how I had been successfully using the social trading network, eToro. Since then a lot has changed on eToro, and I've also received countless emails with feedback and stories from other users and lots of questions.
So I wanted to put together another post on how I use the platform in 2016, what's changed, what you need to look out for and how you can maximize your chances of success
The best way to describe etoro is a cross between facebook and a forex broker. Unlike regular trading platforms, on eToro you can see the actual trades made by each individual trader and how successful they are.
But the really cool thing, is that you can also automatically copy the trades of other succesful traders. So when their account makes a trade, yours does too.
I think copytrading is going to be the future of trading!
Trading forex or CFD's can be very risky with huge swings in the markets. Many people who try to trade on a regular forex broker, like Plus500, don't have the neccissary experience required to make the right calls.
On eToro, with everyone's trades being shared, you can easily copy the strategy of actual guru traders. This copytrading method is what I've used and had lots of success with.
Joining etoro is free and will allow you to browse through the profiles of all the traders on the network.
Choose whether you want to use a practice account (great for complete beginners) or deposit to open a real account.
Now you need to find the right people to copy trade on eToro. Read on to find out how...
This is the step where most people go wrong. So I've put together some things that you need to watch out for:
The minimum you can copytrade with is $100 per trader. And because I believe it's essential to copy multiple people it will cost between $200-$500.
You can however trade manually for much less. For example you can place a buy or for Apple for $50.
If you have experience either stock trading or forex trading, I recommend doing a combination of both
If you have no experience then just copytrade as you'll have guru traders doing the difficult analysis for you
With a diverse portfolio of 5+ traders i'm copying, I've managed a 5-20% each year for the past few years. Of course this all depends on who you copy, how much risk you want to expose yourself to, and your initial investment.
Yes. I love the stock CFDs. They cost nothing to hold and it's a good way to add balance to a portfolio. I have invested in a portfolio of 10+ stocks I like.
From time to time eToro offers bonuses for new traders to join their platform. It makes a lot of sense to use these as they are effectively giving you free credits to trade with
How to use a bonus - After registering, enter the code start100 on the cashier page. Depending on how much you deposit this will give you a bonus of up to $1000.Join eToro Here
Forex and CFD's are leveraged products that carry a high degree of risk to your capital it is possible to lose more than your initial investment. Leveraged trading may not be suitable for all investors, so please ensure you fully understand the risk involved and seek independent advice if necessary.