How to make a living of copy trading on Etoro? | How much to invest | Passive income for beginners
Summary
TLDRIn 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.
Outlines
🤔 Introduction to Copy Trading and Its Risks
Anastasia introduces the topic of copy trading, specifically on the eToro platform, and its potential for generating income. She discusses the risks involved, emphasizing that past performance is not indicative of future results. She also highlights the importance of having a personal investment target and understanding the shift from time-based to capital-based income. The video aims to help viewers rethink their approach to investing and to consider the balance between potential profits and losses.
📊 Understanding Copy Trading Profitability and Risk Management
This paragraph delves into the specifics of how copy trading works on eToro, using historical data to illustrate potential profits and losses. Anastasia explains how to calculate the percentage returns based on a trader's performance history and how to estimate the amount of money needed to achieve a desired monthly income through copy trading. She uses a trader's profile as an example to demonstrate these calculations and stresses the unpredictability of monthly profits due to market volatility.
🚀 Anastasia's Personal Experience with Copy Trading
Anastasia shares her personal experience with copy trading, revealing her current investment status and the actual profits she has made. She discusses the performance of the traders she has chosen to copy and the varying results she has received from them. She also addresses the difficulty in predicting future performance and the importance of being prepared to lose the invested capital. Anastasia concludes by emphasizing that while copy trading can provide passive income, it should not be the sole source of livelihood due to its inherent risks.
Mindmap
Keywords
💡Investing
💡Copy Trading
💡eToro
💡Risk
💡Passive Income
💡Profit
💡Percentages
💡Balance
💡Historical Performance
💡Diversification
💡Financial Independence
Highlights
Anastasia discusses the possibility of making a living by copying other people's trades on eToro.
She emphasizes that eToro's copy trading feature is suitable for beginner investors.
Copy trading involves higher risks compared to investing on platforms like Vanguard.
Anastasia agrees with a comment that copy trading can bring higher profits but with higher risks.
Investing always involves risks and past performance does not guarantee future results.
Making a living from investing platforms requires a reevaluation of income expectations.
Anastasia shares her personal target for investment before taking profits for daily life.
Investment income is not based on hours worked but on the money invested.
The more money invested, the higher the potential profits, but also the potential losses.
Anastasia explains how to calculate potential profits based on a trader's historical performance.
She provides an example of a trader's average monthly profit and potential losses.
Anastasia discusses the unpredictability of monthly profits in investing.
She shares her personal eToro profile and the actual results of her investments.
Anastasia's total equity is close to the theoretical amount discussed, but profits vary.
She explains the difficulty in predicting future performance based on past results.
Anastasia concludes that while copy trading can provide passive income, it's not a guaranteed living.
She encourages viewers to consider other sources of income alongside investing.
Anastasia invites viewers to like, subscribe, and comment for more content.
Transcripts
hi guys and welcome back to my channel
my name is anastasia here we talk about
investing and especially investing for
beginners
in today's video i would like to share
my thoughts with you on
whether it's possible to make a living
out of copy other people
on etoro and if it is possible then how
to do it and how much money you have to
invest
into a copy trading in order to have a
comfortable life and being completely
passive
as i said in my previous videos etoro in
my opinion
is the best platform for beginner
investors and the best feature on etoro
is copy trading
social trading where you don't have to
make your own trades you just copy the
trades of other more professional and
more experienced
traders that involves a higher risk than
for example investing on vanguard
someone mentioned this fact in the
comments below one of my videos and i
100 agree with this opinion
but still i think that uh copy trading
on etoro
can potentially bring you higher profits
of course for higher risks that's why
you always have to remember that
if you decide to invest some money into
etoro or any other platforms you have to
remember that
investing always involves risks and the
previous performance will never
indicate future results you cannot rely
on the money that you will get
so this is the problem number one if you
ask yourself whether you can make a
living
out of investing through etoro or any
other platform really
main problem is that you can never rely
on making the profit
every single month over a certain period
of time usually the longer the time the
more
guarantees you have you will most
probably make money that's true
but on a month to month basis the
chances of you losing some money are as
high as
making money that's why if you want to
leave the profits of your investments on
etoro on vanguard on trading 212 or
somewhere else
as the only source of income
i don't know personally if this is the
best idea i wouldn't do it for sure
because the risk is too high for me
but nevertheless i use it tomorrow with
the intention to be living off this
money that i'm investing right now
in the future hopefully in the nearest
future but you never know but i have my
personal target of how much money i want
to have invested in the tour
before i actually start taking my
profits out or some of the profits out
to use in my daily life and that's the
information that i'm going to share with
you at the end of the video
but before we start talking about the
actual money and the actual
sums let's try to understand first how
investing works and how you have to
change the way of thinking in order to
answer this question for yourself
the question of how much money you have
to invest in order to be able to make a
living out of copy trading on youtube
so in the normal life what usually
happens is your salary or your income
depends on the hours that you spend
at work say you work 40 hours a week and
at the end of the month you get
2 000 that means that you can understand
how much money you get
per hour it doesn't matter whether you
work very actively during this hour or
you have nothing to do and you're just
sitting in front of your computer just
sipping a tea
it does not matter that's if you are an
office worker in my experience
i used to work in the office and then i
found an online job where my salary was
fully dependent on the number of hours
that i was working i was getting a fixed
rate
per hour so the amount of money that i
would get at the end of the month was
completely dependent on the number of
hours that i'd work
that month when i started investing the
first thing that i had to
completely rethink is the way i made
money
because now my money my income when it
comes to investing
it doesn't depend on the hours i spend
on my computer on the research it
doesn't depend on that completely
my income when it comes to investing
depends on my money
so it's not the time that makes me money
it's my money
that makes me more money and of course
the more money i invest
the more money i make this is when your
money becomes a tool
and this is how rich get richer because
if i invest one hundred dollars and i
make four percent
out of that one hundred dollars i make
only four pounds
but if someone else invests one hundred
thousand dollars
into the same asset and gets four
percent out of that one hundred thousand
that would already be four thousand
dollars so you see the difference
both me and the other person we've done
the same amount of work
but at the end the result is completely
different and i stayed with my four
dollars while the other person stayed
with their four thousand dollars because
originally they invested a thousand
times more money than i did
so the lesson number one that i learned
when i started investing is to start
thinking
in percentages and i don't want it to
sound that you have to invest
as much money as possible in order to
make more money
because as i mentioned before no one
will give you a guarantee that you will
make any money and in fact you can even
lose your money that's why
of course it works both ways if you
invest more money you can make more
money
but also at the same time you can lose
your money if you have a bad month
that's why everyone has to find this
balance where they feel comfortable with
the
potential losses that they can have and
at the same time
they can get enough profits to leave off
in case they have a good month and they
make good results
i would like to show you now my profile
on the torah and what i actually mean
so we're talking about copy people
that's why let's open
this tab here and let's look at
anybody for example this guy i don't
copy him i just want to show you
how it looks and how to calculate the
percentage that you can potentially get
if you start copying him the potential
profits comes from his statistics and
from his historical graphs
so you see that every month and this is
very convenient how a torah shows you
the
profits or losses that the person made
every single month
is on average in 2021 he made on average
let's say five uh 5.5
even probably more than that because you
see in january he made 5.7
7.9 5.9 5.4 but
the longer the history of this person is
on etoro like for this guy
it's starting from 2017 you can see that
the biggest loss that he's ever had in
one month
is 7.3 percent here in 2017
so you have to be prepared to lose 7.3
percent
out of all of your money and you cannot
rely on this money to be your profits
that's why you cannot say like with
normal job you can say that
okay this month i get two thousand
dollars and i can rely on two thousand
dollars
next month because i know that my boss
will pay me this money
after 2020 with the pa with the pandemic
and with the lockdowns with the furlough
and with
this whole thing that's going on in the
world right now i am not sure if we can
rely on
anything and if we can be sure in
anything about the future
life in general is a risky business so
also
this nearly eight percent in february of
2021
is not the highest result that he's ever
achieved you see here in 2017
he made 10 so what we have to do if we
want to
get the general idea of how much money
we can
kind of expect from this person to make
us every month
we have to add these numbers here at the
end of each year
then we can kind of understand that in
the last four years he made a total of
129
percent so we divided by four that means
that on
average per year he makes about 32
percent and then we
it by 12 12 months that means that on
average he makes 2.6
this is the statistics only of one
person and there are loads of
traders and popular investors on etoro
uh you have to see
by the people who you copy yourself but
you have to
always remember that you can never rely
on
your future results based on your
previous performance
so then continuing thinking in
percentages you have to
think about the sum of money that you
would like to get passively from etoro
every month
in order to have a comfortable life
without any other sources of
income so as an example let's say that
you need a thousand dollars
what we do next is we open our
calculator
again and what we have to do is we have
to understand
how much money we need in our account in
order to get
a thousand dollars where a thousand
dollars is 2.6
out of our total sum for that we have to
put a thousand
dollars times 100 and then divide it by
2.6 to make our calculations easier
let's take not 2.6 but 3 percent
and what we have is thousand
three hundred and thirty three dollars
that means that if you have thirty three
thousand
invested into your etoro account then
most probably you will get a thousand
dollars every month
in profit if the person you copy keeps
on bringing the same results
as what he used to in the last four
years that was
our theoretical lesson now let's get to
the practical stuff
and as always theory and real life are
completely different
so let's look at my profile and see my
real results that i managed to achieve
because i actually have
invested not far away from thirty
thousand dollars
my total equity at the moment is thirty
thousand dollars a bit more than thirty
thousand dollars
so that's not too far away from our 33
000
that we've been just talking about but
nevertheless i am nowhere near
to making a thousand dollars every month
in fact
i'm very happy to be with the profit of
1 700
and this is i think since january or
december when i put a large sum of money
into my solar account
but it's been three months so why isn't
it three thousand dollars yet
you cannot rely on making a profit every
single month i don't just copy other
people i also
invest into individual stocks and shares
which doesn't always go well
but if we look at the people who i
actually copy
they are j nemesis and he's made me 16
so far out of twelve thousand dollars
then i copy wesley
who's made me zero point eight percent
out of two and a half thousand
olivier danielle who made me zero point
five percent
out of two and a half thousand yet
who is at the moment at a loss of 0.4
out of 2.5 thousand baltic seal who are
copy with a thousand dollars and who's
up 0.8 percent
and a marcin who a copy was 500
and he's so far up three percent we can
see
that it is very very difficult to
predict
how these people will perform in the
future because their performance
is so so different i will show you with
an example of
yep per accurate bond if we read his bio
one of the things that he's very proud
of
and the thing that he writes as the in
the first line of his bio is the
fact that over 30 average annual return
since 2013
he managed to achieve but it doesn't
mean that he achieved this return
every single year and if we open his
stats
we will see in 2014 he lost 14
he also lost some money in 2018 you see
it doesn't mean that every single year
he made a 30
return so to calculate how much money
you actually have to invest
in order to get your thousand dollars
and months that we've been speaking
about
originally is a very very hard
number to calculate it's almost
impossible to predict it
all of the money that i invested into my
torah account is the money that i'm
prepared to lose
and by copying other people this is a
passive investment meaning that this is
a passive
income or a passive loss and it gives me
more time to concentrate on
other sources of income where i have to
actually do
something and get my money from the
hours i spend doing my work
so as you've just seen theory and real
life
always never coincide and that's why the
answer of how much money you have to
invest into a copy trading on a tour in
order to make a living out of it in
reality doesn't exist
it's a genius idea where you don't have
to do anything and you just
get the profit of the work of other
people but
this gives you time and possibility to
concentrate
more on the other sources of income
anyway i hope you found this video
interesting and useful if so please
click the like button below
and also subscribe to my channel if you
want to see more of my videos
if you have any thoughts that you'd like
to share please comment below
i love reading your comments and thank
you guys so much for commenting
all your comments they motivate me to
create more videos
and i really hope that you like them and
for today that's it that's all i wanted
to share with you
thank you very much for watching and bye
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