Guide to Money Making on eToro
Last month I made over $860 in profit on etoro. I started copy trading there a few months ago with just $400 deposited in my account. I wanted to put together this guide to show that it really is possible to earn income on etoro. If you’ve ever wondered, “can you really make money investing as a beginner”, then make sure you read this.
So What Exactly is eToro?
eToro is a social trading platform based in the UK and available globally. It’s a bit like combining a traditional forex broker with a
social network like facebook. Basically, every time you make a trade, it’s shared with the rest of the community. The flip side is, every time a guru makes a trade it’s also shared. So you can see exactly what trades the professionals are making – all in realtime.
You can invest in currency (forex), Stocks (like apple, google etc), Commodities (silver, gold, oil etc.) and Indices. Personally I invest mostly in currency and I copy trade other investors who do the same. But I also hold a couple of stocks as well. It’s a bit of fun to be able to own a slice of Apple or Google.
Copy Trading is the Secret to Making Money on eToro
Unless you’re an expert banker or economist, I wouldn’t recommend trading forex on your own. It takes years of practice and a strong understanding of both technical and fundamental economics.
The good news is, that using etoro, you can automatically copy all the trades of experienced, professional traders. All you have to do is pick the right traders.
Getting Started Making Money on Etoro
Make sure you follow these steps. If you just open an account, and start following random traders and opening your own trades, you are going to fail – trust me, I’ve been there.
Step 1: Open a new account with etoro using this link. You’ll get the maximum available bonus. eToro will give you some free cash, although you’ll need to make a deposit in order to be able to copy trade (the minimum amount to copy trade is $200 per trader you follow). I recommend starting with around $400 if you can. This will give you enough cash to absorb any dips and still give you decent returns. Of course, never invest what you can’t afford to lose, but the more you put in the bigger the payout on each trade.
Step 2: Copy some traders. Just hit the big blue button on the trader’s profile. I like to copy a trader with a minimum of $200. If you’re copying a trader, and you notice that some of his trades aren’t being copied by you, it’s because you’re not copying with enough. $200 I find is enough. Update – etoro recently changed their platform so that the minimum copy trader amount is $200. I think this is great news.
Step 3: Sit back and wait. Patience is the key. Some traders will only open 1 or 2 trades each week. Some will open lots. The important thing is to not get impatient and start messing about. If a trader, after 3 weeks isn’t showing any gains then you should stop copying them. Come back to this list and copy the new traders. Although, I’m pretty good at picking the right people to follow.
Update – Looks like eToro is holding a promotion. You can find out details of the friends bonus here
My Top Tips for Making More Money on eToro
- Don’t manually trade. One mistake I made early on, was opening trades on my own. I didn’t have the knowledge or experience to do it. And it cost me. Don’t make the same mistake. Only use copy trading to begin with. If you want to manually trade, start with a practice account.
- Copytrade 4 Different People. Copytrading just one trader will leave your account vulnerable. Spread the risk and copy trade 4 different people.
- Don’t Copy Traders Who have a 100%+ Gain. These traders are employing high risk strategies. Aim to follow traders who are gaining around 30%. That is still an amazing return, yet without the stupid risk.
Investing in Stocks on eToro
A unique feature of etoro is the stocks feature. Using the platform, you can buy a fraction of a share (starting at just $10) in a huge range of companies. These include Apple, Facebook, Google, Coca Cola etc. If you’ve ever wanted to get started investing in stocks, but don’t want to invest a lot of cash, then etoro is pretty much the only option that allows you to get trading in seconds using just $10. I choose to keep a portion of my portfolio invested in etoro stocks.