Below are some generic tips and tricks based on our experience of investing on the eToro social trading network. Please note that all our tips relate to the CopyTrader functionality, where you follow and copy other traders. We have also written more specific pages with:
These explain the things we look at and evaluate when looking for the best traders (i.e. Gurus) to copy on eToro.
These tips relate to the money management and risk management practices to consider when investing on eToro.
General eToro Tips:
- Try with the demo account first (click here to try the free eToro demo)
- Spend some time and effort in selecting the traders (Gurus) you’re going to copy and don’t just select the most popular ones.
- Test the Gurus first in your eToro demo account.
- Understand the ‘risk level’ of each Guru before you invest in them and apply this to your overall account risk management (see our eToro money management tips).
- Try to avoid adjusting or closing trades from Gurus yourself in your account. Yes, you’re in total control and at any time you can close their open trades in your account. However if you copy a Guru you should have confidence in their overall strategy (otherwise, why copy them and not just trade yourself?). However, if you’ve clearly lost confidence in the Guru, do stop copying them (which will close their open trades in your account)
- Be patient. If you’ve done your homework on the Gurus you copy, you shouldn’t judge their performance on 1 or 2 weeks.
- Be realistic in your expectations. If you expect to double your account in 1 month, do understand that this will mean you need to copy very high risk Gurus and hence you may lose your initial allocation.
- Read through the eToro trading manuals as they’re very useful for anyone new to Forex trading.
- Don’t invest more than you can lose. There’re no guarantees and when you invest with eToro you can lose some or all of your initial investment.