What Is Copy Trade? Things To Know About Copy Trading In Etoro

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What Is Copy Trade? Things To Know About Copy Trading In Etoro
What Is Copy Trade? Things To Know About Copy Trading In Etoro

Tiếng Việt Português فارسی

You want to trade like professional investors. However, you don’t have the knowledge and experience to make money in the financial markets. This article will help you make money in the financial market using Copy Trading from Etoro platform.

Don’t skip this article because I’m sure it will change your life. Even if you don’t have the knowledge, experience, skills, and time to invest, you can start with very little capital.

Register an Etoro account NowGet $100,000 Free for beginners

Why does the financial market attract investors?

Why does the financial market attract investors?
Why does the financial market attract investors?

The financial market is the fiercest battle in money, with up to 90% of investors failing, even losing all the money.

But what attracts losing traders or beginners to the financial markets?

That’s because 10% of people who make money in the financial markets are very rich. Income from investments brings extreme financial resources.

Wealth when you succeed in the financial market
Wealth when you succeed in the financial market

Financial transactions offer the opportunity to make large sums of money quickly. Money represents freedom for many people, even though they don’t know how to make money.

Everyone entering the market has a trade-off between losing money and being in the top 10% who succeed.

An investor lives a very comfortable life with lots of money, lots of time, and no constraint. It is because of common things such as not having to bow before a boss, not under pressure from work, no financial headaches, etc.

Financial trading is a game of money, always attracting those who love to challenge and take risks.

Difficulties of people who do not have the knowledge, experience, and time to invest

How can you enter the investment world without the knowledge, experience, and time to invest. If I throw money in there, it is sure to be lost.

Difficulties of beginners who are new to the market
Difficulties of beginners who are new to the market

This is especially true for an investor with no knowledge and experience who is like a sheep among wolves.

It takes quite a long time for a beginner to get the best investment experiences. You have to trade money, time, and energy to get investment skills.

But miserably, not everyone can become a successful investor. A successful investor, in addition to the above, must also have the quality of market acumen.

Successful investors are often dry and disciplined. Moreover, they also control their trading psychology very well and know to accept, which very few people can do.

All of this creates an overall picture in the investment world with 90% losing and only 10% making money.

However, today, with the development of technology, a person who knows nothing can still make money in the financial markets by Copy Trading.

What is Copy Trade?

This is an intentional copy trading action performed by an investor. For example, opening a position, setting stop-loss and take-profit, or closing a position are also executed in the copier’s account. The ratio between the copied trader’s account and the copying trader is appropriately distributed.

What is Copy Trade?
What is Copy Trade?

The copy trader usually retains the ability to close the copied orders and self-manage. They can also close the copy relationship completely. Copied investors will be paid a monthly copy fee to their account.

Copy Trading evolved from automated trading, also known as algorithmic trading in 2005.  Tradency was one of the first to propose an auto trading system, called by them Mirror Trader. This was an automated trading system where traders shared their own trading history so others could follow.

Since 2010, it has become an increasingly popular trend among brokers. It serves as a money-making solution for inexperienced traders who benefit from the trading decisions of investors they consider successful.

Advantages of Copy Trading compared to self-trading

Advantages of Copy Trade
Advantages of Copy Trade

A common trader’s job is to track transactions, manage emotions, manage capital. Often, they will face a lot of work to be done. And of course, it takes a lot of time.

Copy traders do not have to do anything. Just choose an amount of capital and a good trader you want to copy from. Then you can play games, study, research other stuff, do housework, work, take care of your children, etc. During that time, your profit rate is still the same as an experienced investor.

Traders must regularly improve their trading knowledge, learn how to manage capital, how to control psychology, etc.

However, Copy Traders do not need to pay much attention to these things. Their job is to find the investors who best manage risk to their point of view. Those are investors who have a profit rate over a certain period of time and a trading style that suits them.

Traders have to spend money, time, and effort testing new investment methods.

A Copy Trader can select many different investors at the same time. This is to compare their effectiveness within an extremely short testing time. It helps copy traders have a perfect portfolio and earn good profits without investment experience.

So what problems can Copy Trading solve for investors who do not have the knowledge, experience, and investment time?

Solutions for beginners
Solutions for beginners

– You don’t need too much capital to start investing.

– You don’t need too much capital to be able to make an investment trust.

– There is no need to pay to be able to perform the copy trade feature.

– There is no time required to manage orders.

– You do not need to learn to improve your trading knowledge and skills.

– There is no need to pay the fee for the investment trust organizations to manage your capital for you.

– You can manage your account yourself. All decisions are yours.

– You can choose any investor you think is suitable.

– All information about investors is very clear and transparent for you to consider and decide for yourself.

– You can increase or duplicate profits with unlimited capital.

– You can deposit/withdraw money as you like.

– Enthusiastic support from the trading platforms is always available when you have any questions.

How’s about Copy Trade profit potential compared to other investment channels?

Let’s compare the profits that Copy Trade brings to evaluate the effectiveness compared to other investment channels.

Bank savings

In the current period, the highest interest rate on bank savings in some developing countries like Vietnam, Philippines or Indonesia only about 9% per year. In USA and other developed countries, it is even lower, around 1-2% per year. Actually, only those who do not know what to spend money on will come to bank savings for interest.

Bank savings
Bank savings

Bank deposit interest rates usually fall to 9% per year. However, subtracting the currency devaluation (inflation), the real interest you get is very little.

People who have no knowledge of finance and cash flow often think of banks when having a large sum of money. But the reality is very different from what they think. For example, if there is hyperinflation like in Venezuela, their money will be washed away no matter how big it is.

So do not think that bank savings are a safe channel.

Compared with bank interest, you should invest, namely using copy trading. You will find that making 15% of profits a year is extremely easy if you know how to choose successful investors.

15% compared with 9% plus the power of the 8th wonder – “compound interest” – will be a huge amount of money. Therefore, compared with bank savings, copy trading has a much better advantage.

Compared with real estate investment

Real estate investment is an investment channel that is safe in the portfolio of an experienced investor.

Real estate investment
Real estate investment

During the time when real estate takes the crown, you could make a lot of money from it. It may be 20%, 30%, 50%, or even 100% of the money you spent.

However, the downside of real estate is poor liquidity and a large amount of investment. You also run the risk of losing money when your real estate freezes. Then, your assets will decrease.

Copy Trading may not be comparable to a real estate portfolio during a boom. However, it overcomes the disadvantages of real estate quite well thanks to low investment capital, fast liquidity, and a relatively small risk of capital reduction for this portfolio.

Therefore, you should consider copy trading a perfect complement to your overall portfolio.

Compared with securities investment

Securities investment
Securities investment

The advantage of stock investment is that you benefit from the basic interest per share each year. However, stocks with high interest rates have very high prices compared to the common ground.

Moreover, if the stock price does not move in a good direction during the investment year, the return from stocks may not even be equal to the “interest on bank savings”.

So, compared to securities investment, copy trading has a much better advantage. That’s because you can overcome the problems that are common in stock investing. You do not need knowledge, experience, and time to make a profit by copy trading.

Why can you use the Copy Trade feature for free?

Most of the free things are aimed at promoting and recommending products. But for Copy Trade, it benefits everyone who uses this feature.

The Win/Win theory between 3 parties

Win/Win theory
Win/Win theory

People who copy other people’s orders and can easily make a profit. Because they copy without spending much time, effort, knowledge, or experience about the market.

For investors being copied, in addition to making profits from self-executed trades, they also get paid by the platforms and enjoy a small fee from followers. If the number of their followers is large and the investment in copied trades is much, the monthly amount they earn is not small.

The more members a trading platform has, the more trading orders will be executed. They will benefit from the fees of the incurred transactions plus the withdrawal fees. A portion of transaction fees will be redistributed to the copied investors. This is intended to encourage them to share their experiences and trading strategies.

Trading platforms pay successful investors, not you

On the Etoro trading platform, you can view the transaction level and the received commission of an investor.

An Elite investor will receive a monthly fixed amount of up to $1,000 plus 2% of the transaction fees incurred by the followers for that month.

This means that an investor with a better profile will have more followers. Or you can say, the larger amount of followers funds are, the more money they make.

The most reputable platform where you can create an account to start Copy Trading

When it comes to Social Trading, you can’t help but mention Etoro in the first place. Established in 2007, Etoro has thriven and now presented in 140 countries with 14 million accounts.

Etoro broker
Etoro broker

Etoro is prized for its good platform. You can see in great detail the information and history of social traders on Etoro to make the right investment decision. It is one of the pioneering platforms in the field of social trading. On Etoro, users in Vietnam can also deposit and withdraw quickly and easily through many different channels.

You will also receive enthusiastic support from Etoro right after you register for an account. Currently, the Vietnamese support team is available and Etoro also pays much attention to the Vietnamese market.

Etoro will soon launch a website in Vietnamese to better support users. On Etoro, you can trade a lot of different instruments such as Crypto, Currencies, Indices, Stock, ETF, etc.

On the Etoro trading platform, you can make money by copying orders of professional investors. Become a reputable investor, share your orders with the community, and earn commissions. If you are a marketer, you can also make money by serving as an IB for Etoro to receive commissions.

Register an Etoro account NowGet $100,000 Free for beginners

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