For the past few months, I've been using the social trading platform eToro. I thought I would put together this page to explain a bit about my strategy and what etoro is. I first heard about eToro when they launched quite a few years ago. Back then their product was very different and basically was Forex wrapped in a game like graphics interface.

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Since then, they've moved towards becoming a social trading platform. I guess the best way to describe it is the "Facebook of Forex". And so I decided to give it a go.

I can comfortably state I have no experience in trading forex. I've done some reading on the subject and now know what a pip, spread, order etc. But, I wouldn't trust myself to actually invest money in Forex. Enter eToro , where you're able to copy the traders who actually know what they are doing.

The process is relatively simple, just look for traders on the network who have a good record and then click a "copy" button. From now on, all their trades will be be copied by your account. As you can see, although there have been a couple of dips, I've actually done ok. Thats quite a decent return! Both the dips on the chart were the result of my noob investing experience.

Instead of copy-trading I went all maverick and invested in Apple before it decided to take a dive. I now leave it to the gurus.

But a quick bit of research and common sense will tell you that these traders are using high risk strategies. Forex is already high risk, so don't make it even worse.

Look for someone with a majority of low-medium risk traders, and a low weekly drawdown Diversify Spread your investment over numerous traders. All traders have bad weeks. By copying as many traders as your budget will allow, you're able to mitigate the risk of having your entire investment wiped out by a single trade.

I used to stay away from following traders who invested in stocks on etoro, but that has changed since etoro introcued real time stock trading. I've found that traders who invest in both forex and stocks provide more reliable returns over the long term.

You don't want to be stuck copying a trader who only logs in every couple of weeks. Look for gurus who make frequent trades.

Return of the daytrader: can you earn a living by copying other investors? - Telegraph

Smaller amounts won't allow you to automatically copy all the trades of the people you follow. So you won't see any growth. There are countless of forex trading platforms, but only a couple that offer a social trading platform - i. I like the ease of use that etoro offers. Notice how I put "experiment" in the header of this page. That's because my investment is very much an experiment. Forex is extremely risky - even if you're following experienced traders on eToro.

My experiment only involved a small amount of cash that otherwise would have been spent on a new Apple product - Don't risk your life savings on Forex. I don't take it too seriously and can handle seeing my account wiped out. My actual savings sit in an Australian high-interest 4. Forex and CFD's are leveraged products that carry a high degree of risk to your capital it is possible to lose more than your initial investment.

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Leveraged trading may not be suitable for all investors, so please ensure you fully understand the risk involved and seek independent advice if necessary. My Experiment with the Social Trading Platform. In the Beginning For the past few months, I've been using the social trading platform eToro. That's My Chart As you can see, although there have been a couple of dips, I've actually done ok.

I've found that traders who invest in both forex and stocks provide more reliable returns over the long term Choose Frequent Traders to Copy You don't want to be stuck copying a trader who only logs in every couple of weeks.

Etoro - The Social Broker - Review | Trade Forex South Africa

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How Many Traders Do I Copy? As my investment grows, so will the number of traders I copy. Why eToro There are countless of forex trading platforms, but only a couple that offer a social trading platform - i.

Can you Make Money with eToro Probably. You can also lose all your money as well. Join eToro Here to get your first deposit bonus. Verify your account Enter the code "start" when making a deposit More: Social trading faq Latest etoro bonus Updated June