How to make a living of copy trading on Etoro? | How much to invest | Passive income for beginners

Summary

In this informative video, Anastasia discusses the potential of making a living through copy trading on eToro, a platform favored for beginner investors. She emphasizes the risks involved, noting that past performance is not indicative of future results. Anastasia explains the importance of thinking in percentages and finding a balance between potential profits and losses. She provides a theoretical example to calculate the amount needed to invest for a desired monthly passive income, using the average performance of a copied trader. However, she also shares her personal experience, highlighting the unpredictability of real-life results compared to theory, and encourages viewers to consider copy trading as a supplementary income source rather than a sole reliance.

Takeaways

• 😀 Investing for beginners can be facilitated through platforms like eToro, which offers copy trading and social trading features.
• 📈 Copy trading on eToro allows less experienced traders to mimic the trades of more professional and experienced traders, but it involves higher risks compared to traditional investments like those on Vanguard.
• 💡 The presenter agrees with the idea that investing always involves risks and past performance is not indicative of future results.
• 🤔 The main challenge with relying solely on investment platforms like eToro for income is the unpredictability of profits on a month-to-month basis.
• 💭 The presenter suggests that while copy trading can potentially bring higher profits, it is not advisable to rely on it as the sole source of income due to its high risk.
• 💰 The concept of making money through investing is different from a traditional job, where income is based on time spent working. In investing, it's the money that works for you.
• 📊 The presenter emphasizes the importance of thinking in percentages when it comes to investing and understanding that more investment can lead to higher profits but also higher potential losses.
• 🔢 To estimate how much money one needs to invest to earn a certain passive income, one must calculate based on the average returns of the traders being copied and their historical performance.
• 👀 The presenter shares her personal experience on eToro, highlighting that her actual results differ from theoretical calculations due to the unpredictable nature of investment outcomes.
• 🚀 The presenter's goal is to invest enough to eventually live off the profits, but she acknowledges the uncertainty and the need to balance potential gains with the risk of losses.
• 📝 She concludes that while copy trading can provide passive income and free up time to focus on other income sources, it is not a guaranteed way to make a living and should be part of a diversified investment strategy.

Q & A

What is the main topic of Anastasia's video?

The main topic of Anastasia's video is discussing the feasibility of making a living by copying other people's trades on the eToro platform and how to approach it.

Why does Anastasia consider eToro as the best platform for beginner investors?

Anastasia considers eToro as the best platform for beginner investors because of its copy trading or social trading feature, which allows beginners to copy the trades of more professional and experienced traders without having to make their own trades.

What is the inherent risk involved in copy trading on eToro according to Anastasia?

The inherent risk involved in copy trading on eToro, as mentioned by Anastasia, is that it involves higher risk than investing on platforms like Vanguard, and past performance does not guarantee future results.

What is Anastasia's view on relying solely on investment profits from eToro or similar platforms as a source of income?

Anastasia does not recommend relying solely on investment profits from eToro or similar platforms as the only source of income due to the high risk and unpredictability of profits on a month-to-month basis.

What is the main problem with using investment profits as the only source of income, as highlighted by Anastasia?

The main problem is the inability to rely on making a profit every single month. The chances of losing money can be as high as making money, which makes it risky to depend solely on investment profits.

What personal target does Anastasia have regarding her investments on eToro?

Anastasia has a personal target of a certain amount of money she wants to have invested in eToro before she starts taking out or using some of the profits for her daily life.

How does Anastasia explain the shift in mindset needed for investing compared to traditional work?

Anastasia explains that in traditional work, income depends on the hours spent working, whereas in investing, income depends on the money invested. It's not the time spent on research or work that makes money, but the money itself that generates more money.

What is the significance of percentages in investing, as explained by Anastasia?

The significance of percentages in investing is that they allow investors to think in terms of returns on investment rather than absolute amounts. This helps in understanding how much profit can be made relative to the amount invested, regardless of the total capital.

How does Anastasia demonstrate the potential profits from copying a trader on eToro?

Anastasia demonstrates potential profits by looking at a trader's historical performance on eToro, calculating average monthly profits, and using these figures to estimate how much one would need to invest to earn a certain amount passively each month.

What is Anastasia's current experience with her investments on eToro?

Anastasia's current experience involves having invested around $30,000 on eToro, with varying results from the traders she copies. She mentions being happy with a profit of $1,700 recently but acknowledges the unpredictability of monthly profits.

Why does Anastasia emphasize that theory and real life in investing often do not coincide?

Anastasia emphasizes this because even with a solid understanding of investment principles and strategies, real-life outcomes can vary greatly due to market conditions, trader performance, and other unpredictable factors.