Andrew Cleaver
Edited
๐™‰๐™ค๐™ซ๐™š๐™ข๐™—๐™š๐™ง ๐˜พ๐™๐™–๐™ง๐™ž๐™ฉ๐™ž๐™š๐™จ & ๐™๐™๐™–๐™ฃ๐™ ๐™จ! Hi All! I'd like to start by saying a massive thanks to those of you who have followed or copied over the last month or so. November has been an interesting and tough month for many traders, especially after the run up in October. If you are new around here and haven't already read my pinned post, then go take a read to get a better understanding of my strategy here on eToro. For this months charities I have made donations to both the WWF and Age UK, please follow the links below if you wish to support the charities alongside me! www.justgiving.com/fundraising/andy-cleaver-etoro-ageuk www.justgiving.com/fundraising/andy-cleaver-etoro-wwf I always pride myself on being a low risk portfolio, with the main aim of steady returns and low drawdown. I thought I'd give some general advice on this post as I know a lot of you are new to trading! ๐™๐™๐™ž๐™ฃ๐™  ๐™‡๐™ค๐™ฃ๐™œ ๐™๐™š๐™ง๐™ข... One of the biggest problems I come across with new traders and investors is a lack of patience and a rush for quick profit. A lot of people find their way into trading and investing with unrealistic expectations, and ultimately, this leads to impatience if they don't 10x their net worth in a week! I see so many people start copying a popular investor, the market experiences a few red days/weeks, and they immediately close the copy and lock in the losses. Whether you are investing in the markets on your own or copy trading, it pays to have a long term view! ๐˜ฟ๐™ค๐™ก๐™ก๐™–๐™ง ๐˜พ๐™ค๐™จ๐™ฉ ๐˜ผ๐™ซ๐™š๐™ง๐™–๐™œ๐™š One of the simplest strategies for any new investor is dollar cost averaging. I'll give a quick overview here but you can jump on google and find much more detailed articles if you are interested. Dollar cost averaging is basically a way of building a position in your favourite stocks or popular investors slowly, and without worrying about the current price/return. Markets are dynamic and move in both directions, no investment in history has ever just been "up only", just take a look at the weekly chart for the $SPX500 and $NSDQ100 this year, you can see numerous corrections before we moved on to new highs! Take the early days of $AMZN (Amazon) and $AAPL (Apple) , both experienced huge corrections of over 50%, several times on their path to becoming the giants they are today. If you invested all of your money in one go and the market experienced a large correction, you basically left yourself with no capital to take advantage of the cheaper prices. With dollar cost averaging, you break your investment into smaller parts and buy a smaller portion of stock on a set interval (e.g. monthly), regardless of price. If you have a long term horizon this is generally considered an effective strategy. With copy trading, the same principal applies, if you start a copy and the trader experiences a red month (as all do), then you could add funds to the copy at the start of the next month, bring down your percentage loss, and then reach profit sooner than you otherwise would have! When selecting a trader to copy it should be someone you trust to get you a return over the long term, not days or weeks. By adding funds to a copy on a regular basis you stand to perform much better in the long run and reduce the impact of market corrections and dips! ๐™๐™š๐™˜๐™๐™ฃ๐™ž๐™˜๐™–๐™ก ๐˜ผ๐™ฃ๐™–๐™ก๐™ฎ๐™จ๐™ž๐™จ For anyone interested in learning technical analysis and short term trading, please take a look at this beginners guide I had published on the eToro blog for a good starting point! It has now had over 20k views! www.etoro.com/news-and-analysis/copytrader/basics-of-technical-analysis/ ๐™Ž๐™ช๐™ข๐™ข๐™–๐™ง๐™ฎ Please feel free to ask me any questions you may have, whether its about technical analysis, the markets, general investment and trading advice and strategies, copy trading, my strategy here on eToro, or anything else you would like to ask (within reason ha!) Thanks again for your support and trust! Andy
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