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.

Outlines

00:00

🤔 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.

05:00

📊 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.

10:00

🚀 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.

Keywords

💡Investing

Investing refers to the act of allocating resources, such as money, with the expectation of generating an income or profit. In the context of the video, it is the primary activity discussed, with a focus on beginner investors and the potential for making a living from it. The video emphasizes the importance of understanding investment risks and rewards.

💡Copy Trading

Copy trading is a form of social trading where novice investors can replicate the trades of more experienced traders. The video discusses the possibility of making a living from copy trading on the eToro platform, highlighting the higher risks and potential for higher profits compared to traditional investments.

💡eToro

eToro is an online trading platform that offers various financial instruments, including copy trading. In the video, eToro is presented as the best platform for beginner investors due to its user-friendly interface and the feature of copy trading, which allows users to follow and replicate the trades of successful traders.

💡Risk

Risk in the context of the video refers to the potential for financial loss when investing. The speaker emphasizes that investing always involves risk and that past performance does not guarantee future results. This concept is crucial as it sets realistic expectations for viewers considering investing as a sole source of income.

💡Passive Income

Passive income is money earned with little to no effort by the investor after an initial setup. In the video, the idea of generating a passive income through copy trading on eToro is explored. The speaker discusses the appeal of receiving profits from the work of others while having more time to focus on other income sources.

💡Profit

Profit is the monetary gain derived from an investment or business activity. The video discusses the potential profits from copy trading, using percentages to illustrate how different levels of investment can yield varying amounts of profit, with examples from the speaker's own eToro profile.

💡Percentages

Percentages are used in the video to express the rate of return on investments. The speaker advises viewers to think in terms of percentages when considering their investment goals, as it helps to understand how much profit can be made relative to the amount of money invested.

💡Balance

Balance refers to the equilibrium between potential losses and gains in investing. The video stresses the importance of finding a personal balance where one is comfortable with the risk of loss and the potential for profit, which is essential for making informed investment decisions.

💡Historical Performance

Historical performance is the record of past results or outcomes, often used as a reference point for future expectations. The video uses the historical performance of traders on eToro to illustrate the potential for profit, while cautioning that past success does not ensure future results.

💡Diversification

Diversification is the strategy of spreading investments across various financial instruments to reduce risk. The video mentions the speaker's personal investment strategy, which includes not only copy trading but also investing in individual stocks and shares, as a form of diversification.

💡Financial Independence

Financial independence is the state of having enough financial resources to cover all living expenses without having to work actively for money. The video discusses the concept of achieving financial independence through investing, particularly through copy trading on eToro, as a long-term goal.

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