When discussing the platform….this always comes up Tom Heath Etoro…Ideally you will select something up along the way so what are copy portfolios so basically they are a basket of traders or possessions picked by based upon a selected theme sort of like a small etf in some aspects copy portfolios are fantastic for diversity and are developed to decrease long-term danger and take advantage of current market chances each copy portfolio is occasionally rebalanced in order to get the most out of the thematic trading technique upon which it is based normally they are seen as a medium to long-lasting investment vehicle but you can stop your investment at any point at the existing market rates as long as the markets are open copy portfolios are fantastic for novices who want a hands-off approach and if you look at’s website they really declare that they intend to offer up to double-digit yearly returns while mitigating the risk associated with the financial investment now keep in mind previous efficiency isn’t indicative of future results but that is what they intend to do so copy portfolios are kind of like an etf
A handled portfolio without the fees although actual expertly managed funds are most likely to be adjusted everyday or on shorter intervals whereas these are re-balanced at longer periods so what is rebalancing generally with time the value of individual assets in a diversified portfolio move up and down whereby they drift away from their target weights for instance over the long term stocks normally increase quicker than etfs so the stock portion of your portfolio will go up relative to the etf part the rebalancing mechanism closes and opens positions periodically to keep the asset allotment ratio and preserve the copy portfolio technique various copy portfolios rebalance at various times to others so basically you require to take a look at every one individually to discover the rebalancing period once you buy a copy portfolio your capital is expertly managed by’s investment committee each copy portfolio’s efficiency is examined in depth and rebalanced automatically periodically to maximize its gain capacity so to start with there are three types now like i stated i’m not going to review each one however possibly i’ll do that in another video so let me know if this is something you want to see in the remarks if you see here we have market copy portfolios top trader copy portfolios and partner copy portfolios so market copy portfolios purchase a mix of cfd stocks commodities or etfs according
Is it trustworthy?
to a pre-determined market method or focusing on a specific market segment as it states here they are built around a concept performance metric or an algorithm that selects its leading carrying out properties and then next we’ve got the top trader copy portfolios leading traders buy a group of traders these compromise the very best carrying out traders on according to a predefined method the traders within are chosen by’s financial investment committee and algorithmically looking for specific trading attributes that are optimized for profit then lastly we have actually got a partner copy portfolios these are portfolios created by third parties that conduct thorough market analysis and has actually partnered with and once again have a theme so let’s discuss a few of the benefits and drawbacks of copying individuals versus copying portfolios so i’m not going to describe what copyrighting is however if you would like to know more about that then go have a look at my video which i’ll put a link to up here and in the description listed below firstly i would state the primary pros of copy portfolios are that they are good for novices who want a more hands-off technique in regards to the market copy portfolios i would state they are excellent if you want direct exposure to a particular market where you believe the industry will succeed as a whole for instance you may want exposure to great deals of renewable energy companies or driverless automobiles companies due to the fact that as a novice you may not know much about private stocks to select it will likewise save you time as investigating great deals of individual stocks can be extremely time consuming so letting do this on your behalf is excellent this is likewise real for the other two copy portfolio
Can you make money on the trading platform?
types for example as a newbie you might not know what constitutes an excellent trader to copy if you would like to know how i personally discover people to copy on then go have a look at my video which i’ll put a link to up here and in the description listed below choosing a trader based copy portfolio can provide you direct exposure to great deals of traders that are selected by algorithmically this is great for diversity if you’re brand-new to i personally would not invest all my cash in one trader and would try to spread it out over a variety of them in case among them does not succeed and on the odd occasion this does take place i learnt this through copying a trader when starting out so i was copying this guy and at the start he was succeeding then he simply began to believe the market would crash so he started shorting lots of stocks and it never did and it just kept going up and after that he still kept stating that the marketplace was going to crash and it never did so i lost quite a bit of money so this is also a caution that your capital Tom Heath Etoro
Why is eToro thought about to be bad?
Certainly at risk eventually i had to cut my losses with this trader and i believe i ended up losing over a thousand dollars in the end which i was not happy about however i took a look at that trader further down the line and he continued to lose more money so cutting my losses at that point i did was better than where i would have been six months further down the line so while past performance is not prosecuted for future outcomes i have made a few of my biggest revenues in copy portfolios for instance i’ve been bought the in the game copy portfolio because the 3rd of july 2017 and today’s date is the 25th of april 2021 so in just under 4 years i have actually made an outrageous 210 revenue also last year i purchased the huge tech copy portfolio in january 2020 and now 16 months later this has made a tremendous 47.08 revenue which remains in simply over a year so if you compare that to a bank where you’ll be fortunate to get one percent in a year right now that’s that’s some insane growth i’m getting here on but like i stated previous efficiency is not indicative of future outcomes so clearly there are some minor negatives to copy portfolios to start with it is not possible to get rid of a part of the financial investment it’s also not possible to close private positions within a copy portfolio
Is eToro really free as they say?
so this is my virtual account here so state for example you didn’t like a particular company or individual that the copy portfolio had invested in or state for instance you wished to close one position to take earnings you would need to close the financial investment totally so that’s something to bear in mind if you’re the sort of individual who creams the top of the profits off of an investment so then possibly you should invest directly into stocks or traders that you would wish to copy rather than in a copy portfolio likewise while some of the copy portfolios have an entry point that begins at 1 000 us dollars the entry level on a few of these is quite high all the trader based copy portfolios need a minimum of five thousand us dollars and 5 thousand us dollars could be a lot so your alternative is to potentially take a look at some of the traders in these coffee portfolios or take a look at the stocks in a copy portfolio and then purchase them by hand yourself
certainly if you did this you would not get any rebalancing as you would on a copy portfolio now possibly another unfavorable of copy portfolios and i could not discover this out for certain however my understanding is that on market copy portfolios there isn’t any stop losses on individual positions if somebody from etora sees this video and wishes to confirm this with me then please feel free to get in contact and after that i’ll put it as the pin remark listed below now this doesn’t imply you can’t personally set a stop loss on the copy portfolio yourself but state for instance if you’re copying a market copy portfolio it wouldn’t close and react out a position if there was a crash in the market whereas a real person might react to the market and close out positions and potentially redeem in at a lower entry point this may deserve thinking about when choosing a market copy portfolio so to buy copy portfolios
Why do you require 25k to day trade?
you would firstly go to the following link on the left here that states purchase copy portfolios this is my virtual account as i said before service and after that from here you have actually got the 3 kinds of copy portfolios that we were discussing in the past and if you drill into these you can see all of the copy portfolios they have on offer and there’s loads of different ones in here with great deals of various styles so it’s worth having a browse so say let’s just click this crypto copy portfolio here that with its absolute insane results of 935 area for 2 in the last 12 months that seethes so it’s a very similar design to a regular property on with the feed on the very first page the description on the right here will generally outline what the copy portfolio’s approach is and the minimum investment quantity this must also describe how frequently it rebalances so as you can see for this crypto copy portfolio here the minimum financial investment quantity is 1 000 us dollars so as i have actually just discovered here the description on the first page does not constantly match the description on the 2nd page so to find out the rebalancing if you go on here i’ve simply found that by searching for rebalancing you can see that this cryptocopy portfolio will be rebalanced annual or by the financial investment committee discretion consisting of brand-new listings or de-listing based on the terms mentioned above and the minimum financial investment
amount is 1000 us dollars so as you can see here on the right-hand man side we have actually got the property allowance now you really need to keep in mind of this as i learned this the hard way and by this i may discover this in two methods so i in fact invested in one of these crypto copy portfolios a long time ago when i was starting out on and i didn’t examine the weightings and i presume they were all equal yes i know i was a massive noob and a rookie well one of these cryptos was more greatly weighted than the others which one tanked whereas the others didn’t it then struck the stop loss and cashed out my position and after that as cryptos do it got better up uh due to the fact that they are so unstable so not just did i lose a great deal of money and i wasn’t able to buy back ins because the cost had actually bounced up but i likewise can’t bear to believe more that would be worth now today it’s simply uh i missed out on i lost out on that one but it’s lesson to learn and often the very best lessons in trading are unfortunately found out the hard way you will not forget them when you make a horrible error like that so moving on from that if we scroll further down we have the historical statistics of the copy portfolio if it’s a newish copy portfolio then you’ll discover there’s some stars next to the numbers
and this means as it says here the stars are based on back tested results then you have actually got an average danger score here on the left hand side and likewise you can see the number of investors in this copy portfolio and after that down at the bottom we have actually got some nice charts for net exposure and allotment then if you click on the portfolio here you can see the existing holdings in the portfolio and you’ve got some nice charts here which just show the various allowance but if you really wish to see the real holdings you can see the present holdings in there in the portfolio and their existing earnings and loss here um and if you alter this bit here you can see the historical trades this copy portfolio has actually closed out of so if we set that to possibly one year you can see the historical trades this copy portfolio has actually closed out of then on the last tab we have a chart showing the performance of this copy portfolio with time so to invest in this you simply click the huge button on the top right that states invest and then you can set an amount here that you wish to put in then you can set a stop loss listed below and i’m just going to leave that at 400 this is my virtual account just know there is a minimum and an optimum on the stop loss here so if i press the invest here and now it started buying copy portfolio now this copy portfolio did open immediately due to the fact that it’s a crypto portfolio and the markets are open 24 7. now i’m taping this video on a sunday Tom Heath Etoro
If you were to in fact invest in a copy portfolio that invested in stocks then it would not really open those positions till the markets open on monday so as you can see here this is the crypto portfolio on my virtual account and if you click the cog up here you can increment the financial investment you can stop briefly the financial investment you can adjust the stop loss or you can close the financial investment now if you want to increase the financial investment one thing i have discovered when looking at a lot of these is that the minimum quantity you can include to a copy portfolio once it is open is a thousand dollars now i do not understand if that’s the very same for all of them however i looked at a handful and they did all seem to say it was a thousand that you could include minimum so that’s something definitely to bear in mind when opening your copy portfolio position so i hope this video has actually been practical to you if you are considering investing in a copy portfolio then please do your own due diligence first if you’ve got any concerns on this video then please let me know in the remarks let us understand if you invest in copy portfolios and if so which ones or
which ones do you believe could be a good investment i ‘d love to understand and i checked out all your comments if you discovered this video helpful in any way then i ‘d really appreciate an early thumbs up as it really helps support the channel also for those of you thinking about signing up to and have not currently then there’s an an affiliate link listed below where if you do sign up using it then i will get a kickback and it doesn’t cost you anything additional however it really helps support this channel so why not give a go before transferring any real money as they will offer you a demonstration account with a hundred thousand dollars of virtual money where you can experience all of the functions like copy trading without losing any real cash also if you wish to discover more about how works or more about individual financing and investing then i have numerous videos on my channel so i recommend you check them out so please push the bell and subscribe icon so you do not lose out on any future updates it’s been ollie from get geek finance thank you for seeing and i’ll catch you in the next one Tom Heath Etoro