Copy-trading has been a popular way of earning in recent years. The growing market is attracting new investors who want to make money with copy trading. eToro is one of the popular and trusted platforms that are suitable for beginner to advanced investors. You can have an overall reflection of the platform in the review of eToro copy trading. Let’s check out how to make money with copy trading.
Create a trading account
Before you start copy trading, you need to open an account on a suitable copy trading platform. But, which one is a good platform? If you are a beginner, you should choose a platform with a simple interface for better understanding. So, it is recommended to create a demo account first. Check out if the platform offers money and risk management tools. At the beginning level, you need to learn a lot. So, make sure if the platform offers sufficient resources to learn. Besides, all the members must be active. The most important thing to consider before choosing a platform is the availability of investors that you can copy. From all these aspects, eToro seems to be a good copy trade platform for beginners.
Follow efficient traders
In copy trading, you need to follow other traders. So, be careful if they are verified. A common belief in the copy trading market is to follow the traders who had a good performance in the past year. But, it may not work all the time. Some of the good traders also may have a sudden downfall, though his performance is good overall. Platforms like eToro provide a tremendous filtering system. But, a beginner should not follow them blindly. Take those filters and your own research combinedly and you will be able to understand who you should follow.
Let’s learn some quick strategies before following someone. Look at the Realized profit of a trader that has been earned from closed trades. If the trader has a high level of realized profit, it signifies that he is a good trader.
Secondly, don’t follow traders who are doing the same things. In that case, you will be restricted. But, you need to diversify your strategy. Check out traders’ bio to know how they are trading. If you aren’t allowed to see it somehow, check what they invest in and the duration of the trade. This will also help you to understand the trader.
Besides, it is a good strategy on average to follow a trader who has 10 to 20% return throughout the past year.
Investment for beginners
If you are a beginner, you need to understand and experiment with many things. So, investing a big amount may not be a wise idea. Beginners can learn the market by investing a little amount like a hundred dollars. Though such an amount won’t bring success overnight, they are sufficient amount to start your journey in copy trading.
Failure in copy trading may occur due to a lack of strategy. If you put every step precisely, you can make money with copy trading.