๐๐ก๐ ๐๐จ๐ฉ๐ฒ ๐๐ฆ๐จ๐ฎ๐ง๐ญ
โ ๏ธ ๐ป๐๐๐ ๐๐๐๐ ๐๐ ๐๐๐๐๐๐๐๐๐ ๐๐๐ ๐๐๐๐๐๐๐ ๐๐๐ ๐ท๐ฐ๐. ๐ฐ๐ ๐๐๐๐๐๐๐๐ ๐ ๐๐๐ ๐๐ ๐๐๐๐๐๐๐๐๐๐๐๐. ๐ฉ๐ ๐๐๐๐๐๐ . โ ๏ธ
Some may wonder why most PIs state the minimum amount to be copied and why many copies never work properly because of this. Of course, it's tempting when as little as 200 USD is enough to start a copy.
I would like to address that in this post.
First of all, it is important to know and understand that eToro will not open trades within a copy if the copied trade was less than 1 USD!
Well - 1 USD on a 200 USD copy is therefore 0,50%. But there are many PIs that have much smaller positions in their portfolios. These would never be copied. So again the whole copy doesn't work properly because the weighting doesn't work anymore.
๐๐จ๐ฐ ๐๐๐ง ๐ญ๐ก๐ข๐ฌ ๐๐ ๐ซ๐๐ฆ๐๐๐ข๐๐?
1. As a copier, you are responsible for your own investments. The easiest way is to look for the smallest position and calculate the minimum copy yourself.
๐ป๐๐๐'๐ ๐ ๐๐๐ก๐ก๐๐ ๐๐๐๐๐ข๐๐: 1 ๐๐๐ท / (๐ ๐๐๐๐๐๐ ๐ก ๐๐๐ ๐๐ก๐๐๐ / 100) = ๐๐๐๐๐๐ข๐ ๐๐๐๐ฆ
Example: The PI has trades with 0,06% in the portfolio. 1 USD / (0,06 / 100) = 1.666,67 USD minimum copy
โ ๏ธ Make sure that you look at the individual TRADES, not just the overall share of a company.
2. The PIs should, if they already write something like this in their bio, adjust this part regularly. The percentages change as a result of deposits and/or withdrawals, but also by closing trades.
3. Or what would be the easiest for everyone and certainly makes @eToro_Service customers happier - when opening a copy, the correct value should simply be displayed to the copier. Possibly with a checkbox where you confirm that you know if you don't want to copy some trades. This way there are fewer misunderstandings - if you have read it. Technically, this is certainly very easy to implement!?
๐๐ฌ ๐ญ๐ก๐๐ญ ๐๐ฅ๐ฅ?
When it comes to the trades, that's about it - yes.
Now there's the issue of dividends. Now, in the example above, you've copied all the trades for 1.666,67 USD, but you're wondering why some dividends aren't paid out. Here one must not forget that a trade that runs at 0,06% on the PI has the same percentage in the copy, but only has a size of 1 USD. Now let's take $O (Realty Income Corp) as the monthly payer. With the current dividend, that's 0,425% per month. 0,425% of 1 USD is 0,00425 USD gross. That alone would not be possible to pay out because it is less than one cent. How tall would the copy have to be? Relatively simple. The net dividend is calculated (depending on the country of the investor up to 30%) - this is then 0,002972 USD. But we need at least one cent to get it paid out. So we do the math 0,01 / 0,002972 - that's factor 3,37 (rounded). This in turn means that the copy must be 3,37 * 1.666,67 USD = 5.616,67 USD in order to receive every trade ๐๐๐ every dividend.
๐๐ก๐๐ญ ๐๐จ๐๐ฌ ๐ ๐๐จ๐ฉ๐ฒ ๐ฅ๐จ๐จ๐ค ๐ฅ๐ข๐ค๐ ๐๐จ๐ซ ๐ฆ๐?
๐๐จ๐ฉ๐ฒ ๐๐ฆ๐จ๐ฎ๐ง๐ญ (๐๐๐๐๐ ๐๐๐ ๐ ๐๐๐๐๐๐๐๐):
๐โ๐ ๐๐๐๐๐๐ข๐: ๐๐๐ ๐๐๐ - for those who only care about price developments - here there are only the bigger dividends.
๐โ๐ ๐๐๐๐๐๐๐ก-๐น๐๐ก: ๐.๐๐๐ ๐๐๐ - synchronicity 100% (any development - any dividend)
๐โ๐ ๐๐๐๐๐๐๐๐๐ ๐: ๐๐๐ ๐๐๐ - any dividend with a yield of 1% or more, just not the small ones
Equally like many other PIs, I make monthly deposits. As described above, this changes the percentages. For this reason and because otherwise there is no capital for new trades and these cannot be executed, it is always advisable to expand the copy in the same proportion as the PIs.
๐ป๐๐๐ ๐๐๐๐๐๐ ๐๐๐๐ ๐๐๐๐ ๐๐. ๐ฐ ๐๐๐๐ ๐๐๐ ๐๐๐๐๐๐๐ ๐๐๐ ๐๐๐๐. ๐ณ๐๐ ๐๐ ๐๐๐๐ ๐๐๐๐ ๐ ๐๐๐๐. ๐ฐ๐ ๐๐๐ ๐๐๐๐ ๐๐๐ ๐๐๐๐๐๐๐๐๐, ๐๐๐ ๐๐๐ ๐๐ ๐๐๐๐๐๐ ๐๐๐ ๐๐๐๐.
$SPX500$MSFT (Microsoft)$GOLD$BTC... Show More
This is a brilliant post.
I had made a video along the same lines however I donโt think I had considered the full extent of how large the copy would need to be to receive all dividends.
I was mainly coming from the angle of โPI cannot reinvest the dividends until they have collected $10 which is min... Show More
So here is a good trick for every PI to boost their aum.
Make sure that one of your positions is 0.01% of account.
You can then legimately claim an absurd min copy amount amount.
You are welcome ... Show More
Great post - props for research and transparency - especially as you are a dividend investor.
I knew about the trading part. Never thought of the additional complication caused by dividends and indeed it is logical that they make the required minimal copy amount even higher (to get all the dividends)
Two... Show More