Roberto Anzellotti @IlMatematico: "BEFORE YOU START COPYTRADING: READ..."

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BEFORE YOU START COPYTRADING: READ THIS! Today I take this opportunity to give you some tips on COPYTRADING that will allow you not to repeat the most frequent mistakes that beginners make (often losing money). 1️⃣-> Don't start copy trading thinking you'll only be invested for a week or a month. Especially if you want to copy me (but in general for anyone) invest thinking you'll be invested for at least 2-3 years or more! For this reason, don't invest money you might 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-> With CopyTrading, an automated bot replicates the live trades of the Popular Investor (PI) you are copying. If you start a copy when the markets are closed, the bot has to wait for the markets to open to buy those stocks. For example, if you copy a trader who holds AAPL (Apple) and open the copy on Saturday, you will not see Apple stock in your portfolio until Monday when the markets open. I have often seen people try to close and reopen the copy thinking there is a problem, but there is not a problem, it is just that you have to wait for the stock markets to reopen. So, expect potential delays in creating your copy that reflects the same stocks as the PI you are copying, and that is normal (especially when the PI holds stocks that come from stock markets scattered around the world). Etoro has a copy mechanism that is proven and has worked for years, do not doubt that it is "defective", if the copy is not aligned you just have to wait. 3️⃣-> When you start copying a PI, you buy the same shares he owns at the current price, not the original purchase price. If the PI are 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's simply how the math 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 <2> 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 "Copy open positions" setting is now obsolete and you are no longer prompted. 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 the same. 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

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