Lately I have been receiving some emails asking me whether it makes sense to start with just 200 USD (eToro minimum copy amount). I answer every single one, but since not everyone knows that they can contact me by email, here is the answer for everyone.
With the current portfolio composition, this is by no means possible, as no positions would be opened. I always use the same amount for all positions, and today it is 0.4508% of the current capital. This value fluctuates slightly every day, but especially on days when I make a deposit, this percentage continues to fall.
The reason why no positions are opened is because the minimum size of trades within a copy is 1 USD. With the current percentage, however, this is only 0.90 USD. I wrote a more detailed post some time ago. You can find it on my wall or the shared post.
Now I could of course adjust my position size, and I think about that every now and then. A range of 0.56% to 0.67% per position would be possible. I have often thought about this in order to reduce the number of open trades and one day I will do that. It will definitely not happen before the end of the year. Then, when I can roughly estimate how high my tax burden will be and I can reduce it significantly by closing red positions.
But now to the main point: I am a dividend investor! Even if I were to adjust the trades so that someone could copy me with 200 USD and copy every trade, these copies would perform massively worse than my own.
I have already explained this mathematically in the pinned post mentioned above.
In a nutshell: You may experience the same performance as me, but you only receive a fraction of the dividends that I receive (only from companies that pay out annually or have high quarterly payouts). However, participating in the performance also means that you would have to accept the price reduction on ex-dividend dates - you just won't get the dividend to go with it.
And that's exactly why I'm reluctant to increase the positions.
Of course I'm happy about a high AUM, every PI does that.
For my part, I have to and want to protect potential copiers from the fact that a copy is doomed to failure from the start.
And then the point - let's be honest - unless you plan to stock up the copy monthly: What dividend income is expected, even if you were to receive it: 9 USD per year.
For this reason, you always see 3 copy contributions in my posts, only from 1,650 USD do you participate in my performance 1:1. With everything that goes with it, including every single dividend. But this amount also logically continues to rise. At the end of the year, it will be between 1,900 and 2,000 USD.
I already have a few copiers who save their copies in me every month.
Incidentally, yesterday we were able to start the new month with a solid 0.55% profit.
Best performer yesterday:
$PETS.L (Pets at Home Group Plc) (1.35% portfolio share) with 8.91% after receiving a buy rating
Worst performer yesterday:
$DVN (Devon Energy Corp) (0.90% portfolio share) with 4.07% due to the sharp drop in OIL prices yesterday.
Today does not seem to be a good day. Even though the HKG started strongly today, it fell back into the same resistance area of โโthe last few days and lost two-thirds of its performance again. Our shares held up for the most part solidly. With the exception of $2333.HK (Great Wall Motor) , which lost 10%. The reason is that the Chinese car manufacturer has stopped its local European sales and now wants to operate them from its own country. The market also assumes that no more plants will be built in Europe and that exports to Europe will fall. Is that 10%? Probably not. But it is clear that the potential is always factored in. In terms of costs, it could be cheaper to operate sales from China than to have 100 employees abroad and operate a large headquarters. At the same time, the number of vehicles sold and produced has declined YoY. Since the last high, the share has already lost 21%. This includes a dividend discount of just over 3%. On an annual basis, sales have still risen sharply. We are definitely continuing to hold on here.
Today we received the following dividend:
$GGB (Gerdau SA-ADR)
๐๐๐ ๐๐๐๐๐: 0.055 USD
๐๐๐๐๐๐๐๐๐: irregular
๐๐๐๐ ๐๐๐๐๐๐๐๐๐ ๐๐๐๐๐ : 5.54%
๐๐๐๐ ๐๐๐๐๐๐๐๐: varies from payout to payout
๐๐๐๐ ๐ ๐๐๐๐ ๐๐๐ : estimated for September 2024
๐ป๐๐๐๐๐: 5 => +49.70%*
๐๐ข๐ฏ๐ข๐๐๐ง๐ ๐๐ฎ๐ฆ๐ฆ๐๐ซ๐ฒ ๐๐๐ / ๐๐๐ / ๐๐๐๐
๐ถ๐๐๐๐๐๐๐๐ ๐กโ๐๐ก โ๐๐ฃ๐ ๐๐๐๐ ๐๐ข๐ก ๐ ๐ ๐๐๐: 1 / 117 / 330
๐๐๐๐๐๐ ๐กโ๐๐ก โ๐๐ฃ๐ ๐๐๐๐ ๐๐๐๐ ๐๐ข๐ก: 2 / 260 / 620
๐๐๐ ๐ข๐๐ก๐๐๐ ๐๐๐๐๐ก๐๐ / ๐๐๐ฃ๐๐๐๐๐ ๐ฆ๐๐๐๐: 0.02% / 1.91% / 5.42%
๐ ๐ฐ๐ข๐ฌ๐ก ๐ฒ๐จ๐ฎ ๐๐ฅ๐ฅ ๐ ๐ซ๐๐ฅ๐๐ฑ๐ข๐ง๐ ๐๐๐ฒ. ๐
_____________________________________________________
โ ๏ธ All information given here does not constitute investment advice!
All statements are my generally published opinion. I gained the information from my experiences as a private investor.
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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.
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