Started using eToro? But looking to make a little more cash? I’ve put together the top 10 things that I believe will help you make more money on eToro.
10 – Start with a decent investment amount
The minimum first time deposit on etoro is now $200 for most countries (you can deposit less on subsequent deposits). I think this is a smart move by etoro. Investing $50 just isn’t worth it. You need a bit more breathing room. My new recommendation is investing between $250-$500 to begin with. This amount will allow you to copytrade multiple people and with an amount sufficient enough to see proper returns.
9 – Invest at least $200 in each copy trader
eToro allows you to copytrade with at least $100, but I feel a smarter amount is $200. One good strategy is start with $100 (as long as the minimum trade size is at least $1) and then if things are going ok after a couple of weeks, double down and invest another $100 in that trader. This is the method I use and it works well for me.
8 – Invest in stocks
As well as copytrading, i’m building a small portfolio of stocks. I’ve had some great returns and this has been really useful in beefing up my investment. Diversity is a good thing on etoro. If you don’t know anything about stocks, it’s best to copytrade someone else who is investing in stocks. I like to manual trade them on my own as well. I stick to a few stocks that I know well and that has worked well for me.
7 – Become a popular investor
Investors who have at least one person copying their trades are eligible to get extra cash from eToro. The more people who follow you, the more you make. I wrote a good post here on being a popular trader and the benfits.
6 – Set a tight stop loss amount
I don’t like continuing copying a trader if they lose more than 20% of my balance. Sure the trades might eventually turn around and pick up, but I have seen them tank as well. So I’m relatively cautious and keep my stop loss at 20%.
5 -Don’t invest in high risk traders
Look at the risk profile of the trader before you start copying. You want to make sure they are opening low risk trades. High risk trades carry too much leverage. Sure they can deliver massive returns, but they can also deliver massive losses. I only invest in traders with low risk trades. eToro makes it really easy to see the risk history of trades.
4 – Don’t invest in traders with returns over 100%
These traders are doing something wrong. I know that sounds odd. But in reality, they are using too much leverage. It’s a super high risk strategy that may have paid off for them in the past, but it isn’t sustainable. I have been on etoro for years and know from experience that these traders always crash and burn.
3 – Copy trade 5 different people
Spread the risk. Not all traders make returns each month. Take a more sensible approach and spread out your investment between multiple traders. you might not have the funds to copy trade 5 people, that’s an ideal situation.
2 – Don’t be afraid to Stop copying
One thing that really bugs me is when a trader stops opening new trades for weeks or months at a time. That just pisses me off. I want my money working for me, not sitting earning zero. So I try and find traders who make trades at least a couple of times a week. Furthermore, if someone doesn’t open new trades, I pause and eventually close out all there positions and stop copying. Keep your money active and working.
1 – Give it Time
My number one tip – give it time. eToro doesn’t work overnight. Ok sure i’ve make like a 20% return in one night (with an awesome netflix stock trade), but the best results happen over time. Good traders open small positions, often and close them relatively quickly. This keeps things moving. The returns aren’t huge but they really add up over time.
What are your top tips? Let me know in the comments. Don’t have an etoro account? Grab one here.