April 15, 2024

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How to Copy Professional Trader’s Strategy on eToro USA LLC

In the investment world, especially those related to the equity market and futures market, trading is indeed the main activity. An investor who trades, means that he is involved in short-term buying and selling activities in the stock market, futures market, foreign exchange market (forex/foreign exchange), and others.

In the past, this financial market could only be accessed by companies with large capital with lots (minimum number of purchase units), now it is no longer. The advancement of the development of the internet makes anyone able to trade and become an individual trader even if the capital is mediocre. With the fact that the velocity of money in financial markets is enormous, making a profit as a trader is not a dream.

This big advantage makes many people, including the younger generation, interested in becoming professional traders. But like the law of nature, big profits also involve big risks, so the reason some people are reluctant to become an investor is that they are afraid of losing their capital and savings in the equity market.

In addition, the lack of understanding of the investment world and how to start stepping into the global market is another reluctance factor. Including those who are wondering what is the right way to start the journey as a trader in the global market. No need to be confused anymore. Because through the CopyTrading feature from eToro USA LLC, now anyone can easily become a professional trader.

What is copy trading?

As mentioned earlier, copy trading is a great feature of eToro. If you don’t know, eToro USA LLC is one of the financial and brokerage companies that does provide access to financial markets, with millions of users spread all over the world. Founded in 2007, eToro’s nearly 13 years of experience proves that they are a professional and trusted broker.

Through CopyTrading, you can easily copy trading steps from other traders, starting from performance, risk management, and of course the buying and selling transactions themselves. So that means, that whenever the trader buys an asset, you will also make the same move at the same time and price. Even when the trader makes a sale, so do you.

This makes the CopyTrading feature possible for anyone to become a professional trader, even if they have just stepped into the world of financial markets. Worry no more, CopyTrading allows you to make the same trades as copied trades from start to finish. For more information review 2022

While there are already several brokers offering similar features with different levels of execution parameters eToro USA LLC provides it for free! How come? Because eToro is the one who pays the traders. Where professional traders are part of the Popular Investor Program.

How to Copy Professional Trader’s Strategy with CopyTrading

After understanding what CopyTrading is, of course, you can conclude that this feature is very special. So, how can you do CopyTrading? It’s not hard. The first is that you can first determine which trader you want to copy their financial performance to by selecting the Copy People page under the Discover menu.

Then to make it even easier, you can choose the best traders in the Editor’s Choice section. Why is that? Because this is a container that contains recommended traders.

As an initial test step, use virtual accounts and just copy the performance of some of them to see how this process works. Don’t have a virtual account yet? Register now and get $100 virtual money for free.

In addition to The Editor’s Choice menu, you will also find several different categories such as Top Investor, Trending, Most Copied, Lower Risk Score, and Medium Risk. Just a suggestion, try the categories one by one to get a different trading experience. Interestingly enough, in the Lower Risk Score and Medium Risk categories, you can directly see the average return received by traders as well as a comparison of the risks that will be obtained.

You can see that traders with 3-4 risk scores have an average return of 20-30%. Meanwhile, traders with medium-risk options can have an average return of 35-40%++! Can understand which is more profitable, right?

That’s why if you are already using a virtual account, try to immediately try to copy at least 10 different traders’ transaction steps. That way, you can see the strategies and trading habits of several different traders. So this can be capital as well as a good preparation when you are ready to copy and make transactions with real money in the real world.

Example of Using the CopyTrading Feature

To make it easier to understand, we will give an example of using the right copy trading feature. Suppose you choose a trader from Editor’s Choice namely sparkling. Just to the right of the Editor’s Choice view, you can see live SparkLiang trading statistics.

At the time of writing this article, he has made a profit of 47.14% in the last 12 months. It also recorded risk core 4 and its performance has been copied in total more than 2,839 times, which is very good. Arguably, SparkLiang’s initial stats are very interesting, but you should study its profile further before deciding whether or not to copy its performance.

Don’t forget to also consider the information in the bio column of the trader as well as his notes. Why is that? Because usually, traders will share strategies as well as their trading goals. For sparkling, he recommends people copy his performance for the next few months with at least $600 in the capital. The minimum value that SparkLiang sets is $200.

Then, you also have to look at the numbers and statistics of traders. Just click the Stats tab to see all the relevant statistics. In the Performance section, you can find out what the advantages and disadvantages are of trading on eToro USA LLC. This is one of the most important metrics to look at.

Let’s switch objects and observe the performance of Harshsmith, who can become one of the best traders because of his success in achieving satisfactory performance in October 2018. For your information, 2018 was indeed a difficult and difficult moment for the financial market.

Although Harshsmith has had a negative note in recent months, this is still normal in trading activity. Fortunately, Harshsmith’s losses weren’t great.

Then another factor that you should also pay attention to is the information on Risk Score and Drawdowns aka withdrawals. Why is that? Because these two things will show how much risk the trader takes on average so that he gets the return he generates.

Harshsmith recorded a risk score of 3 which means it is quite low. Meanwhile, the annual drawdown is -9.93%. What does it mean? Harshsmith risked 9.93% of his money for a 20% higher return.

From that information, it can be concluded that Harshsmith is smart enough to diversify. In an investment portfolio, diversification is always very important to minimize losses. Because putting all your eggs in one basket is a very bad thing.

Through Harshsmith’s portfolio, you can also see that there are several diversified investments that he has made. Although it is indeed the largest allocation in stocks, Harshsmith participates in investing in indices and ETFs (Exchange Traded Funds) aka Mutual Funds in the form of Collective Investment Contracts.