If you are about to copy other traders on social investing network eToro I have one hot tip for you.
Many aspiring copiers make one HUGE MISTAKE when they start to copy other profitable etoro traders.
They simple check list of traders who made nice profit during past 6 or 12 months, choose some of them, hit “Copy” button and invest.
After few days or week they are surprised that the trader closed some trades in profit, but their copied trades are in loss!
Why is that?
It is because they copied open trades that were green.
Let me explain on simple example:
Imagine that you started to copy John Trader when his EUR/USD trade was $100 in profit. Suddenly market turns and run opposite way. John decide to protect his gains and close his trade with $80 profit. Good for him, right?
But because you jumped in when he was $100 in profit, your copied trade closes with $20 loss!!
Do you see why I do not recommend to copy GREEN trades?
Here is a proper way to start copy someone:
1) Choose your trader based on his performance and risk
2) Visit his stats and go to Portfolio section nad see his open trades
3) If there are green trades, do not copy open trades
This way you can protect your bankroll from unwanted loss.
“All trading involves risk. Only risk capital you’re prepared to lose. Past performance does not guarantee future results.
This post is for educational purposes and should not be considered as investment advice”