Roberto Anzellotti @IlMatematico: "COPYTRADING: 9 TIPS TO SAVE..."

Italy

COPYTRADING: 9 TIPS TO SAVE YOU MONEY! Today I take the opportunity to give you some tips on COPYTRADING that will allow you not to repeat the most banal mistakes that beginners sometimes make (often losing money) 1️⃣-> Don't start copy-Trading thinking you'll stay invested for just one week or one month. Especially with me, but generally with anyone, invest thinking about staying invested for at least 2-3 years or more! For this reason, do not invest money that you may need sooner! Above all do not try to be a "Popular Investors trader" by opening a copy and closing it when you are 1% in profit! It is a technique that is proven to be a failure! 2️⃣-> Starting with copy trading, an automatic bot replicates the active trades of the trader you're copying. If markets are closed, it waits to buy those shares. For instance, if you copy a trader owning AAPL (Apple) on Saturday (or any $NSDQ100 or $SPX500 stock) you won't see Apple stock in your portfolio until Monday when markets open. I have often seen people try to close and reopen the copy thinking there was a problem, but it's just how the copy mechanism works. So, expect potential delays in your copy reflecting the same shares as the Popular Investor you're copying! 3️⃣-> When you start copying a trader, you buy the same shares he owns at the current price, not the original purchase price. If they're up 50% on a stock, you start at 0%. This can cause performance differences between your portfolios. It takes years for the portfolios to align, a fact often overlooked by new copy traders. 4️⃣-> When copying an investor with 80% invested and 20% in cash, a 1000$ copy will initially show as 800$ invested. The remaining 20% stays as liquid cash. This isn't an eToro bot error, it is just how the copy algorithm works! 5️⃣-> Absolutely avoid opening and closing copy-trading positions without thinking about it first! eToro does not charge you commissions on Copytrading, but you still have to pay the spreads. If you start a copy and close it after a few hours, you're wasting money! Sometimes, because of point 2️⃣ people close the copy believing that it is blocked, but it is not! avoid doing it and you will save a lot of euros in spread 6️⃣-> This is almost a 5b: If you want to copy someone, don't start copying right away! Wait 24 hours and in the meantime read all the things he has written in the profile and his most recent articles. If after reading his posts and waiting 24 hours you are still decided, then please start the copy-trading. If you don't feel like reading, then don't invest! Not for you! 7️⃣-> With the "Automatic Reallocation" your copy and that of the person you are copying are always aligned. If whoever you are copying makes a new deposit you are free to match his deposit or do nothing. In a few days, however, the accounts will be aligned. 8️⃣-> When opening a copy, do not leave a stop loss too tight (for example 90%) because you risk the copy closing too early and certainly in the red. To manage the risk, instead, lower the copy amount, and put the stop loss below 50% letting the investor you are copying manage the drawdowns. The default of 5% is great for copying me, so leave the settings suggested by eToro and you won't go wrong! 9️⃣-> If you don't understand any of the terms used in this post, then you're not ready to invest yet! At least find out the meaning of all the words that are not clear to you in this post, before you start investing! But above all, remember that the Virtual Portfolio exists: use it because the results are realistic! Periodically I want to re-propose this post for all those who are approaching ETORO and above all COPYTRADING for the first time. I hope this post was helpful to you! I am @IlMatematico and using my algorithms, I try to extract value from the markets. Add me to your watchlist to stay updated on all my news and all my movements on $BTC, $SPX500 and $NSDQ100!

Not investment advice. The author may have financial interests in the mentioned instruments.