I don’t really know much about the stock market. And I’m not exactly gonna risk my money investing in something I don’t know. So how have I managed to make money trading stocks? By using copytrading on etoro. I’ve made thousands over the past few years on eToro, here are some of my tips for making money with stocks.
What is CopyTrading Stocks?
Copy Trading is where you copy the trades of actual guru traders. eToro is a social trading platform. Think of it as a bit like combining a social network with a trading app. On eToro everyone shares the trades they make (not the actual $$ amount, just the trade, such as buying Apple).
Using eToro you can search through peoples profiles and find traders who have performed well.
eToro offers multiple products to trade with. Everything from forex, indices, commodities and of course stocks. I love forex, and have had lots of success copytrading it in the past. Lately I’ve been doing just as much stock trading as I have forex. Why? Because it’s way more stable and reliable. It’s the backbone of my portfolio. The short term profits aren’t as huge as with forex – simply, because generally the market doesn’t move as much, but it does provide more predictable long term gains.
Automatically Copy Trades with eToro
When you “copy” a trader on eToro, every single trade they make will automatically be opened in your account too. It’s done using a ratio method. For example, if a trader invests 5% of their capital in Apple (aapl), that trade will be opened in your account with 5% of the capital you’ve allocated. This is really cool as it means you can copy a trader with just $100.
Spread the risk between multiple traders
I currently follow three traders who invest in stocks. This way I spread the risk and am able to diversify my portfolio. On average the traders make between 1-2 trades per week. I try and follow traders who are active on the platform.
eToro makes it really easy to search for traders and filter out people you aren’t interested in. I look for people who have gained around 20% over the past 12 months – I know this sounds like a lot, but in the world of forex and CFD’s, it’s actually not that huge. I stay away from people who have massive 300% gains – these are often short term traders who are risking way too much. I want to see a trader who has had a good return month after month.
They’re the largest social trading platform in the world with millions of users. They are fully regulated and I’ve been using them for the past few years and have never had any problems. It’s important to find a platform you can trust, for me, it’s eToro.
You can create a free account with eToro here