Beginner’s Guide to Copy Trading on eToro.
Trading may seem like a complex concept and very difficult to get into but it is a great way to earn extra income with minimal action required. Even with little to no financial knowledge or experience, you can now trade stocks on the go and eToro makes this possible. During these periods of economic decline and uncertainty where many stocks remain undervalued, now may be the perfect time to invest.
What is Copy Trading?
Copy Trading is the action of viewing the profiles of real traders and instantly replicating their trading actions at the click of a button. eToro’s CopyTrader feature is the most popular amongst current users and is particularly useful if you don’t have enough time or experience to engage with markets in real time. By using this feature, you are essentially leaving all the hard work to other traders who are more experienced and can earn up to 15% per annum on your copytrading investments. The minimum deposit required to use this feature is 500 USD.
Similarly, there is even an option to invest in CopyPortfolios which require a minimum deposit of 1000 USD. Choosing this will automatically allow you to copy multiple markets or traders. This approach is designed to help traders diversify their trades to reduce long-term risk using a predetermined and thematic strategy.
You can choose from three types of CopyPortfolios:
· Market CopyPortfolios: These bundle together the top performing assets across different market sectors.
· Top Trader CopyPortfolios: The community’s top performing traders.
· Partner CopyPortfolios: Created by eToro’s experienced trading partners who conduct thorough market analysis before choosing the securities and asset allocations for their CopyPortfolios.
Whatever you choose to invest in, make sure to do some background research to see what works best for you.
Creating An Account.
Creating an eToro account is free and simple. To join, follow the link below and click ‘ sign-up ’ to get started. You will be asked to enter your name, details, to choose a username, to enter your national insurance number and your address. You will also be asked some questions regarding your experience and knowledge of trading, as well as your future trading plans. This is to get a sense of your trading background and how experienced you are so make sure to answer all questions as truthfully as possible. After this, the final step will be for you to verify your phone number.
Source: eToro.com.
Trading Requirements.
Account verification: In order for you to begin trading, your account must be verified. Following the sign-up process, it usually takes 1–3 days for eToro to verify your account. If a bronze badge is displayed under your username on your homepage then your account is registered and you will be able to start trading.
Minimum $200 deposit: eToro requires you to deposit a minimum of $200 in order to begin trading and this will vary if you choose to Copy Trade or Copy Portfolios. Although you can deposit in GBP and other major currencies, the platform operates in USD, therefore, copy trading crypto platforms your deposits will automatically be converted into USD.
How To Get Around the Site.
As a beginner, it is crucial that you familiarise yourself with the eToro site and how to navigate through it. Getting to grips with all the main features is a must if you want to make the most of your trading experience.
Under the ‘Trade’ section, there is a:
Watchlist: Make the most of this feature by adding the markets and people that you are most interested in to the top of your lists. There is also an option to organise and to create multiple lists to help you keep up to date with the markets and traders. Keeping an eye on the watchlist will also help you identify top performing markets or traders which can potentially be worth investing in.
Portfolio: This is where you can view your past and current trades and transactions with live updates in order to monitor your progress. It will display the number of trades you open, the amount you invested for each trade, the date and times from when you opened the trades, as well as for when you close them. Here, you will be able to keep track of your profit or loss (P/L) and also set your Take Profit (TP) for each trade you make. This is a good measure to prevent significant losses should you experience this.
Newsfeed: Enables you to interact and form discussions around people and markets with other traders on the platform.
Under ‘Discover’ , you will be able to browse through:
Trade Markets: Where you can discover new markets and choose to invest in stocks, cryptoassets, commodities, currencies, EFTs and indices.
Copy People: Choose who you want to crypto copy trading strategy (http://cryptocurrency.copy-trade.site/) or follow by looking at and comparing different people profiles. By default, you will be shown traders from Editors’ Choice, Most Copied, copy trade crypto terbaik Trending, Long-Term Stock Investors, Long-Short Investors and Multi-Strategy Investors. Another option is to filter your searches geographically, by market, percentage gains, risk score and by setting a timeframe such as during the last 12 months.
Source: eToro.com.
Invest in CopyPortfolios : Choose which CopyPortfolios you want to invest in — Market, Top Trader or Partner CopyPortfolios.
Start Trading.
Once you have familiarised yourself with the site, it is now time to deposit funds and begin trading. Choose who you want to copy by looking through the Copy People page or choose which CopyPortfolio you want to invest in by browsing through the Invest in CopyPortfolios page. Remember, copying those who are ‘most copied’ does not necessarily mean that they are the best traders so it is up to you to do your research before you allocate your funds.
Happy safe trading and good luck!
Disclaimer: eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFD assets.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.
This guide is intended for educational purposes only and should not be considered as investment advice. The author copy trading for crypto and publisher are not liable for any losses or damages you may incur as a result of you following the advice given on this page. The etoro.com layout and content may change since this content was published.