When discussing the platform….this always comes up Etoro Open Markets…Hopefully you will choose something up along the way so what are copy portfolios so basically they are a basket of traders or assets chosen by based on a chosen theme kind of like a mini etf in some respects copy portfolios are great for diversity and are developed to lessen long-lasting risk and benefit from present market chances each copy portfolio is regularly rebalanced in order to get the most out of the thematic trading method upon which it is based typically they are viewed as a medium to long-term financial investment car but you can stop your investment at any point at the existing market rates as long as the marketplaces are open copy portfolios are excellent for novices who desire a hands-off technique and if you look at’s site they really claim that they intend to provide to double-digit yearly returns while reducing the danger related to the investment now remember previous efficiency isn’t a sign of future outcomes but that is what they aim to do so copy portfolios are sort of like an etf
A managed portfolio without the fees although real expertly managed funds are likely to be adjusted daily or on shorter intervals whereas these are re-balanced at longer intervals so what is rebalancing basically gradually the worth of individual assets in a diversified portfolio go up and down where they drift away from their target weights for instance over the long term stocks generally increase quicker than etfs so the stock part of your portfolio will increase relative to the etf portion the rebalancing mechanism closes and opens positions regularly to keep the property allotment ratio and preserve the copy portfolio strategy various copy portfolios rebalance at different times to others so basically you need to look at each one individually to discover the rebalancing duration as soon as you invest in a copy portfolio your capital is professionally managed by’s financial investment committee each copy portfolio’s efficiency is examined in depth and rebalanced immediately regularly to maximize its gain capacity so firstly there are three types now like i stated i’m not going to evaluate each one however possibly i’ll do that in another video so let me understand 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 combination of cfd stocks commodities or etfs according
Is it trustworthy?
to a pre-determined market technique or focusing on a particular market section as it states here they are constructed around an idea efficiency metric or an algorithm that picks its top performing properties and after that next we’ve got the leading trader copy portfolios leading traders purchase a group of traders these compromise the best performing traders on according to a predefined technique the traders within are picked by’s financial investment committee and algorithmically searching for particular trading characteristics that are optimized for profit then finally we’ve got a partner copy portfolios these are portfolios produced by third parties that carry out comprehensive market analysis and has actually partnered with and once again have a theme so let’s talk about a few of the advantages and disadvantages of copying people versus copying portfolios so i’m not going to explain what copyrighting is but if you wish to know more about that then go take a look at my video which i’ll put a link to up here and in the description listed below to start with i would say the primary pros of copy portfolios are that they are good for novices who want a more hands-off method in regards to the marketplace copy portfolios i would state they are excellent if you desire exposure to a specific industry where you believe the industry will do well as a whole for example you may want direct exposure to lots of renewable energy companies or driverless cars and trucks companies due to the fact that as a beginner you may not know much about individual stocks to choose it will also save you time as looking into great deals of private stocks can be very time consuming so letting do this in your place is fantastic this is also real for the other two copy portfolio
Can you earn money on the trading platform?
types for instance as a newbie you may not know what constitutes an excellent trader to copy if you need 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 below choosing a trader based copy portfolio can offer you direct exposure to lots of traders that are selected by algorithmically this is fantastic for diversification if you’re new to i personally would not invest all my cash in one trader and would attempt to spread it out over a variety of them in case one of them doesn’t succeed and on the odd event this does happen i learnt this through copying a trader when beginning so i was copying this guy and at the start he was succeeding then he simply began to believe the marketplace would crash so he started shorting great deals of stocks and it never did and it just kept increasing and then he still kept stating that the market was going to crash and it never ever did so i lost a fair bit of cash so this is also a warning that your capital Etoro Open Markets
Why is eToro considered to be bad?
Absolutely at risk eventually i had to cut my losses with this trader and i think i ended up losing over a thousand dollars in the end which i was not delighted about however i took a look at that trader further down the line and he continued to lose more cash so cutting my losses at that point i did was better than where i would have been six months even more down the line so while past efficiency is not arraigned for future outcomes i have made a few of my most significant earnings in copy portfolios for instance i have actually been bought the in the game copy portfolio since the 3rd of july 2017 and today’s date is the 25th of april 2021 so in just under four years i have actually made an insane 210 revenue likewise last year i invested in the big tech copy portfolio in january 2020 and now 16 months later this has made a whopping 47.08 profit and that remains in just over a year so if you compare that to a bank where you’ll be lucky to get one percent in a year today that’s that’s some ridiculous growth i’m getting here on however like i said past efficiency is not indicative of future results so clearly there are some small negatives to copy portfolios first of all it is not possible to eliminate a part of the investment it’s also not possible to close individual positions within a copy portfolio
Is eToro truly totally free as they say?
This is my virtual account here so say for example you didn’t like a specific company or person that the copy portfolio had invested in or say for example you desired to close one position to take profits you would require to close the investment totally so that’s something to bear in mind if you’re the kind of person who creams the top of the revenues off of an investment so then potentially you should invest straight into stocks or traders that you would desire to copy rather than in a copy portfolio also while some of the copy portfolios have an entry point that begins at 1 000 us dollars the entry level on some of these is quite high all the trader based copy portfolios need at least 5 thousand us dollars and 5 thousand us dollars might be a lot so your alternative is to possibly look at some of the traders in these coffee portfolios or look at the stocks in a copy portfolio and then invest in them manually yourself
undoubtedly if you did this you would not get any rebalancing as you would on a copy portfolio now potentially another negative of copy portfolios and i couldn’t find this out for definite but my understanding is that on market copy portfolios there isn’t any stop losses on specific positions if somebody from etora sees this video and would like to validate this with me then please feel free to get in contact and then i’ll put it as the pin comment below now this does not indicate you can’t personally set a stop loss on the copy portfolio yourself however state for instance if you’re copying a market copy portfolio it would not close and respond out a position if there was a crash in the market whereas a real individual might respond to the marketplace and close out positions and potentially buy back in at a lower entry point this might deserve considering when selecting a market copy portfolio so to buy copy portfolios
Why do you need 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 stated before service and after that from here you’ve got the three types of copy portfolios that we were discussing previously and if you drill into these you can see all of the copy portfolios they have on deal and there’s loads of different ones in here with great deals of different themes so it deserves having a browse so say let’s just click this crypto copy portfolio here that with its outright crazy results of 935 spot for 2 in the last 12 months that’s mad so it’s a really similar design to a regular possession on with the feed upon the very first page the description on the right here will generally describe what the copy portfolio’s approach is and the minimum financial investment amount this ought to likewise outline how often it rebalances so as you can see for this crypto copy portfolio here the minimum investment amount is 1 000 us dollars so as i have actually just observed here the description on the first page does not constantly match the description on the 2nd page so to discover the rebalancing if you go on here i’ve just discovered that by searching for rebalancing you can see that this cryptocopy portfolio will be rebalanced yearly or by the investment committee discretion including brand-new listings or de-listing based on the terms discussed above and the minimum financial investment
quantity is 1000 us dollars so as you can see here on the right-hand man side we have actually got the asset allocation now you truly require to bear in mind of this as i learned this the hard way and by this i may learn this in 2 methods so i actually purchased one of these crypto copy portfolios a long period of time ago when i was starting on and i didn’t check the weightings and i presume they were all equal yes i know i was an enormous noob and a novice well among these cryptos was more heavily weighted than the others which one tanked whereas the others didn’t it then struck the stop loss and cashed out my position and then as cryptos do it recovered up uh because they are so volatile so not just did i lose a great deal of cash and i wasn’t able to redeem ins due to the fact that the price had bounced up however i likewise can’t bear to believe more that would be worth now today it’s just uh i missed out on i lost out on that one but it’s lesson to discover and sometimes the best lessons in trading are regrettably found out the hard way you will not forget them when you make an awful mistake like that so moving on from that if we scroll even more down we have the historic statistics of the copy portfolio if it’s a newish copy portfolio then you’ll see there’s some stars beside the numbers
and this indicates as it states here the stars are based upon back tested outcomes then you have actually got a typical danger score here on the left hand side and also you can see the number of financiers in this copy portfolio and after that down at the bottom we have actually got some good charts for net direct exposure and allowance then if you click on the portfolio here you can see the current holdings in the portfolio and you have actually got some great graphs here which just show the various allotment however if you in fact wish to see the real holdings you can see the present holdings in there in the portfolio and their current earnings and loss here um and if you alter this bit here you can see the historic trades this copy portfolio has closed out of so if we set that to possibly one year you can see the historic trades this copy portfolio has actually closed out of then on the last tab we have a chart revealing the efficiency of this copy portfolio over time so to purchase this you simply click the huge button on the top right that says invest and after that you can set a quantity here that you wish to put in then you can set a stop loss below and i’m simply going to leave that at 400 this is my virtual account just know there is a minimum and a maximum on the stop loss here so if i press the invest here and now it began buying copy portfolio now this copy portfolio did open quickly because it’s a crypto portfolio and the marketplaces are open 24 7. now i’m tape-recording this video on a sunday Etoro Open Markets
so if you were to actually buy a copy portfolio that invested in stocks then it would not really open those positions up until 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 investment now if you wish to increase the investment one thing i have seen when taking a look at a bunch of these is that the minimum quantity you can contribute to a copy portfolio once it is open is a thousand dollars now i do not know if that’s the same for all of them however i looked at a handful and they did all appear to say it was a thousand that you might include minimum so that’s something certainly to remember when opening your copy portfolio position so i hope this video has been valuable to you if you are thinking about buying a copy portfolio then please do your own due diligence initially if you have actually got any questions on this video then please let me know in the remarks let us understand if you purchase copy portfolios and if so which ones or
which ones do you believe could be an excellent financial investment i ‘d enjoy to know and i checked out all your remarks if you discovered this video useful in any way then i ‘d truly appreciate an early thumbs up as it truly assists support the channel also for those of you interested in signing up to and haven’t already then there’s an an affiliate link listed below where if you do register utilizing it then i will get a kickback and it does not cost you anything extra however it truly helps support this channel so why not give a go prior to transferring any genuine cash as they will offer you a demonstration account with a hundred thousand dollars of virtual cash where you can experience all of the functions like copy trading without losing any genuine cash also if you wish to find out more about how works or more about personal financing and investing then i have many videos on my channel so i advise you check them out so please subscribe and press the bell icon so you do not lose out on any future updates it’s been ollie from get geek financing thank you for watching and i’ll catch you in the next one Etoro Open Markets