Should I “Copy Open Trades” on Etoro? (Copy Trading)


Hey, so this one’s about the “Copy open trades” button… When you go to copy someone, there’s always
this little box – ‘Copy Open Trades’ and this is just about what that does… So let’s go here, to the… I’m on the “Copy People” page and here’s Wesley
… So let’s go to Wesley. So… We’re used to this – we normally see this
profile – we have like the feed, the stats, the portfolio, chart – all the normal buttons
you’ll see on someone’s profile. Here, top right, we have the Copy button. So we press the copy button, and we come to
this screen. Now we’re all familiar with this screen, I
think… there’s the amount I can copy him with, there’s the stop copy – so the – ‘stop
copy’ is different from a stop loss. A stop loss controls the individual trades
that you make when you’re manually trading, you can set a stop loss. The people you’re copying often set stop losses… This is different, this is a stop copy, which
means that basically if the copy amount ever falls below an amount you’ve specified like
he loses 10% or he loses 50% or … Then stop the copy automatically. It’s a safeguard. So there’s that … there’s the stop copy. Down here is the button we’re interested in
– “Copy Open Trades” button. Now, by default, when you come to this copy
screen, it’ll be ticked, so it’s sort of … the normal thing is to copy open trades. We’ll start though with what happens if you
don’t copy open trades. So let’s say you don’t copy open trades – what
does that mean for you? Alright, so… First you’ve got to understand what an “open
trade” means, O.K… So an open trade is basically any trade which
is still active, O.K. A closed trade means you’re in a trade, you’ve
either made as much profit as you want, so you close the trade – you stop it. Or you’re losing too much money, and you don’t
want to lose more so you want to stop that trade – you close the trade. So open trade – still active. Closed trade – it’s happened in the past,
it’s finished with and we’ve moved on to another one. When I first started doing this, you know,
I had always heard people say … If I heard someone say “Yeah I’m going to sell Apple”
What I thought that meant is that they owned a bunch of Apple stocks, and they wanted to
get rid of them either because they were losing too much money, or because they’d made lots
of money, so they were going to sell Apple. It’s not what it means, at least not when
you start trading, when you hear people talking. To “Sell Apple” means you take out a position
– you do a trade where you’re betting the value of Apple is going to drop, and that’s
how you want to make money – it’s called a “Sell Position” or “Short selling” a stock. And the other one is called a “buy position”
– where you think that it’s going to go up in value, and that’s how you’re going to make
money. So, anyhow, we don’t say “Oh I sell Apple”
doesn’t mean I sold my stocks, it means .. (Stocks I already had ..) it means something else. So you “open” a position – means you do a
new trade. When there’s an open position it means that
trade’s still happening, when you “close” a position, that’s when you finish it – you
either take your money, or you stop the losses and move on to the next one. So, in his portfolio – we go to his portfolio
– Wesley… And we can basically see a list of all of
his open trades. That’s what you see when you look at someone’s
portfolio. Here. So all the ones in red – these are all active
at the moment. He opened them in the past, and he still hasn’t
closed them. He’s either waiting because they’ve gone down
in value – all the red ones have gone down in value. He’s losing money on the red ones… All the green ones here, are going up in value
– he’s made money on the green ones. With the red ones he’s either waiting – he’s
waiting basically to see if it’ll turn around and it’ll go back up again, you know… most
stocks, they don’t go just completely down, or completely up, they sort of go like this
– so he’s probably watching that and thinking “Alright that’s going to go up.” So, anyhow, these are his open trades – trades
which are still active. So let’s say we haven’t clicked the copy open
trades button… In the copy screen. That means that all of these trades that he’s
in – we’re not going to come into these trades with him. It means that these are the things he’s currently
doing, so we’re going to disregard these and the next trade which we’re going to copy is
the next trade that he opens after we started the copy. So we click copy now, and let’s say he opens
a new trade in an hour – we’ll copy that one. We just won’t copy any of these… O.K? Now, one of the things that is a bit of a
problem with this, and people maybe get confused by – when you’re trading, you try and generally
have most of your money used in trades, because it’s your money which really makes you more
money. It’s weird that because we buy things, we
buy Apple, we sell Tesla, we have all these things and … But really my actual money
is my real asset, you know. I mean there’s times now where I’m sort of
stuck in trades and I wish I wasn’t but they’re down and I’m sort of just waiting – instead
of selling them at a loss, I’m waiting until they go back up. But every single day they sit there with me
waiting – I could be using that money in a better trade to make more money. But I can’t, I’m stuck. And it really highlights the importance of
this – your money is your primary asset when you’re trading. So most people, when they’re
trading, they want to have most of that money working for them. They want to have it in open trades making
money for them. Why I say that is – when you copy someone
and you don’t copy open trades, that person you’re copying most probably has most of their
money tied up in open trades. It’s always good to keep some of your money
back in case there’s a great opportunity so you have some extra money, so you can go in
on that one… Or if you have a stop loss which you need
to extend – so you have to use some of that money to guarantee your stop loss. But generally, people will use most of their
money in active trades because their money is what makes them more money. So if you don’t copy the open trades, the next
trade Wesley makes – we’re going to wait because I didn’t copy open trades… We’re going to wait and we’re only going to
copy trades – his new trades. The thing is, he is probably going to have
to close one of these old positions before he opens a new one. So if I go to his statistics here, look if
I go to Wesley’s statistics – we see the normal things – his performance, here we see the
risk scores and the copiers, his trades … At the bottom here, you see this one … 3.76
trades per week. What that means is, basically, on average
Wesley makes 3.76 new trades per week – he opens 3.76 new trades per week. So really, you can do the maths on that and
you can look at it. His portfolio – these are his open trades. We can probably bet that if we copy him now,
and we don’t click copy open trades… 3.76 times per week, he will start to use
some of that money because he has to … (some of that money we’ve copied him with) do you
see what I mean? Because he has to close one of his old positions
and then open a new one – that’s the one we’ll copy, so a bit of our money will be used in
that. So if we look here, at what he’s invested. Let’s say the first one – AMD. He’s bought AMD – this is the proportion of
his money that he’s used in that trade. So he’s uploaded say $1000, yeah… He’s used 8.69% of that in an AMD trade – he’s
currently losing 15.74% – the value currently, that makes it 7.20% because it’s that minus
that much which equals that… So 8.69%. If you look at them – none of his trades
… That’s a big one – he’s used 8.69% of his money on that trade, that’s quite a big
one – if you go down, look, he’s using 3.9% of it on Ripple, he’s using 1.49% on first
Solar. So when he makes a new trade, we can sort
of say it might be roughly around that – maybe 5%. So if he makes one next week, that’ll be like,
the next trade he makes will be the first one that we use some of our copy money with
him. If that makes sense … So basically, he’ll
open a new trade – it’ll probably be about 5% of his money which would be … let’s say
we’ve copied him with $1000, O.K – we’ve copied him – which is a lot … – let’s say we’ve
copied him with 1000, that means he would use 5% – $50 of our money on that new trade. So whilst we’ve copied him with $1000, we
have to wait for him to close old trades and open new ones to start using up that money
in active trades, and that may take a few weeks until all of the money we’ve copied
him with actually is being used by him trading for us, you see… So sometimes people do – they don’t click
“Copy open trades” and the first few weeks, you’ve got to be warned, can be quite slow. I mean, you might just be waiting, depending
on how much the trader you’re copying trades, and how often he opens new trades – you might
be waiting, you know, 3 weeks / a month, you know – something like that – It could be less,
could be more … Until he starts to use your $1000 or whatever it is, in actual open new
positions, and he’ll take it a bit at a time. $50 there, maybe he opens 10%, uses $100 … Maybe
he opens another 50, 5% one, that’s another $50 – that’s $200 of your money, so far, is
being used in active open trades. So, be aware of that… Now the way you can see that is, let’s say
I go to my portfolio, and let’s say I go to Jay… Here’s all the trades that I’m copying in
Jay, so Jay’s opened all of these trades for me… I haven’t done any of this manually – I’m
copying him, so he’s … these trades are all open, and if we go down to the bottom,
on the left, you can see here – “Total Open – $272.28” That is the amount of the money
I’ve copied him with which is currently being used in open trades, O.K. So you can check this … If you want to,
if you’ve copied someone and you know you’ve copied them with $1000 and it’s going very
slow – you don’t seem to see a lot of profit, you’re not sure what’s going on… Go to your portfolio, click on that trader’s
name, go to the bottom, and on the left, find this “Total Open” bit and see how much of
the money – how much of your $1000 is actually in open trades… Now it might be that he’s not doing very well,
and he’s just not making you a lot of money, or it might be that there hasn’t been enough
time yet that your money is actually being used in active trades. It will – it will catch up, and once it’s
caught up, it will stay caught up, you know… It just takes a while to get that going sometimes. Right, the benefits of not copying open trades
– I mean when I started, it seemed to me like it was really, sort of a way to have a clean
slate – “I don’t know about his past trades, I don’t want any part of that, I just want
to see what he does from now on…” Initially I thought, yeah, that’s a good idea… Now, I mean it depends … It really depends
on the trader, on what they’re doing, on you know, what I think about them… But, I’m not sure about that anymore. But it’s a way – it’s valid, but it might
take a while for it to start up, or to really get going. Alright, the other way we can do that is to
copy the open trades. So let’s say we go back to Wesley … Again
we click ‘Copy’ and we copy open trades. So, what will happen then. So when we copy open trades, we go back to
his portfolio… and we can see all these stocks that we looked at before. these are all Wesley’s currently open trades. We’re going to copy all of them, alright… So, again, we look at the first one – it’s
AMD and he’s buying, and 8.69% of his money, he used for AMD. What will happen straight away is that we
will make a trade with 8.69% of our money that we’ve copied him with. So let’s say that we’ve copied him with $100
– it’s just easier because of the decimals … So we’ve copied him with $100 – that means
we’ll use $8.69 on a trade with AMD, and we’ll be buying it. Same thing, same proportion, same everything. What’s different is that – if you look at
the price, we will always open those trades with the current market price. You know, Etoro doesn’t go back in time for
us or start skewing things, and it doesn’t open our trades at the same price the person
we’ve copied opens. It can’t do that, it has to open them at the
market value now – the current market value. So if you look at AMD, he’s actually got 1,2,3,4,5,6
open trades with AMD. When you see it in the portfolio, it groups
them all, you know… It has AMD, but if you click into AMD, you’ll
see all the little sub-trades which he’s actually made. Normally when these people trade, when good
traders trade, they don’t just say “Right, I’m going to buy AMD, I’m going to put all
my money on it right now.” It’s what I did last time with RAD and got
in trouble … They’re not doing that, they don’t say “I’m gonna put all my money on it
in one go – there’s my huge bet!” They’ll buy a bit, and wait… and if it’s
going up they’ll buy a bit more… and if it’s going up they’ll buy a bit more – maybe
use more leverage, and …. so they go into trades slowly, and generally come out of them
slowly as well. So that confused me in the beginning. “Why are there 6??” you know… So that’s what they’re doing. They have one overall AMD position, but in
that, they’ve got lots of trades building up our out of a trade. So, he’s bought this one – 28th of the 6th
– 2 months ago he bought AMD at 13.56 – it’s gone down since then. Next to it, you can see the current price,
here. Currently AMD is at 12.20, so it’s gone down,
so look, he’s losing money – he’s lost 21%. And as it’s gone down, boom, boom, boom,
boom, the most recent one here is the 11th August, he bought it at 12.01 – it’s now at
12.19, so he’s made money. If we open, if we copy him – we copy Wesley
and we “Copy open Trades” it will copy all these amounts – this is 1.24% of his amount,
of the money he has is on that trade. 0.99% of the money is on that one. 1.49 – we’ll copy those exact proportions
but we will open them all – all of these numbers will instantly be this number here – we would
buy them all at the current market value. O.K? And that would happen for all of his trades… And what are the benefits of this one? So, if you look at – this is a bit counter
intuitive – I remember when I first started, sometimes I’d see people, you know on their
profile, on their feed – if you go to their feed, sometimes here, look … They have this
little bit about them “Always copy open trades to get the best benefit.” blah blah blah blah blah… Sometimes I’d see on traders, you know “If
I’m in the red, copy open trades” and I used to think “Well what’s the sense in that? I don’t want to copy anyone who’s losing money,
why would I copy a losing position!?” because I didn’t quite understand how that works… If, here, – here he’s at -15.61% on that trade. What that means is when he bought AMD it was,
say, here … O.K? The price went down, and AMD is now at this
price, so he’s lost this money, because he thought it was going to go up – it was a “Buy”
position and it’s gone down – he’s lost money. If I copy those trades when he’s in the red,
he’s lost money … I will actually be buying at a lower price than him. So it’s a better trade than he makes. He’s in the red, and I buy it – I buy it at
the cheaper price. Now he’s betting that it’s going to go back
up – that’s why he hasn’t closed the trade, he’s kept the open trade because he’s basically
– Wesley’s betting that AMD’s going to go back up. Most likely will, huge company, good call… But, he’s betting it will go back up, he’s
bought it here, he’ll start making profit when it’s above that. If I copy him and he’s in the red, I buy at
the lower price – by the time it gets to here, I’ll be making much more profit than Wesley… So, that’s kind of the good thing. On the other side, his Apple trade is 5.60%
in … he’s actually making profit. So I will … That means that he bought here,
and now the market is here – see he’s made this much profit. If I copy open trades, I will actually buy
here – so I will buy at a slightly worse price than him – damnit … So if you look at it
there’s red and there’s green, there’s red, red, red, red, there’s green, green, red,
green green – it’s a bit of a mixed bag, you know… It’s a bit of a mixed bag so you’ve got to
sort of weigh that up and say “Alright … am I going to make money overall or lose, and
that’s a lot of maths… To put your mind at rest, firstly if there’s
someone where all of the trades are in red, and you’re thinking “Yeah I ‘m gonna copy
this guy because all of the trades are in red – I’m just going to buy everything at
a lower price!” Watch out that he’s not buying companies like
that Rite Aid I bought where they’re just going down for 7 months and it might go to
0… You’ve obviously got to be a bit sensible. If someone’s losing hundreds of percent on
every trade and they’re in red, maybe look for someone else, maybe actually find someone
where they’re not just completely making losses. But, if you do see some losses and you do
see some greens, and you’re worried and you can’t do the maths – you know I look at Wesley
first of all because overall 87.65 … do you know what I mean… So you look at his overall stats – 7.05% profit
2015, 148 in 2016, 36.04 , and if you look at this, when he’s made wins, his wins are
winning, and when he’s making losses, he knows how to do risk management so his losses are
small – that’s good… If he does start losing, he manages to contain
it. So really, don’t – you know to start worrying
too much about the maths of should I copy open trades – am I in profit or loss – are
most of them winning or most of them losing? Really it’s never going to be on these individual
trades that you either – it makes you or breaks you. when you copy a trader, you’re not relying
on one huge trade to sort of make everything O.K… And sort of you have to work out all these
minute maths… You copy someone – really you look at their
overall statistics and overall are they making money? Overall, are they losing money? Overall is this person someone I trust? It’s never going to be one big trade that
makes it or breaks it, it’s going to be lots of small, clever, consistently made trades. So this, whilst it is, you know “Oh I could
do the maths and work out if overall I’m going to be in profit or loss.” Not that relevant, because you’re looking
at how they trade over time… So those are the major differences really. And it’s up to you which one you do. I know I’ve changed my strategy all the time
– the only thing which I think is a bit … sometimes I see people asking people they’re copying
this question – it would have been useful for me to know because it’s very frustrating
is that part about if you don’t copy open trades, be aware that it might be a few weeks
before they’re – the person you’re copying closes their old trades and is opening new
ones because you’re only going to be copying the new trades they do and therefore it’s
going to take a while to use up that money you’ve copied them with. So it’s a bit unfair on the person you’re
copying if you don’t know that, and after sort of two, three weeks, you’re still thinking
“Man, they’re not making any money for me!” You know, go and check that thing I showed
you in the portfolio – see how much of your money is actually being used. If all the money you’ve copied them with is
being used, and it’s still really not going anywhere after a couple of months, maybe look
at copying someone else… But, you know, be aware of that because it’s
a bit unfair and that’s not explained anywhere… And once I worked it out, I though “Oh damn.” Because there’s been a few people where I
copied and then after like 5 weeks, I thought “Well they’re not doing anything.” And really it’s because they didn’t open new
trades very fast as a trader, and it would have been useful if I’d known that before… So… that’s it.

39 thoughts on “Should I “Copy Open Trades” on Etoro? (Copy Trading)”

  1. Another great explanation thanks – I think eToro might sponsor you in the future because your videos are very professionally made clean.

  2. Hi, and a big Wow! for your video. Amazing one. It was a kind of "eye opener" to me!
    speaking of copy other traders, I found an article recently that seems a very reasonable way to find the best trader to copy, with a very wise use of filters. I encourage you to read it and if you think that it's sensible, make a video and explain every one. you can find it in below link:
    https://investingoal.com/etoro/best-traders/

    thanks
    Max

  3. I have a question, i try to deposit money on etoro but it wont let me beacuse my acount is not verified but to verify my account i need to deposit money so i dont understand that, can you explain please.

  4. Thanks for the great video! If you copy a trader and that person trades with X2, X4 or more, does that mean that I also copy the overnight fees of the trades?

  5. Thank you, very good explanations! Two questions:

    Do you know any trader I can copy that do not invest in criptocurrencies? I want to balance my portfolio, I am getting very dependant on cripto

    Could you do a video about how the overall profit (of your profile) is calculated? I dont get why Total allocated + available is not the same quantity I have deposited but a bit less (maybe fees)

    Greetings from Mexico

  6. Hi Thomas, I am still enjoying your vids and learning much about trading and eToro for Noobies. I too searched reviews for eToro on the internet and found many negative ones. I soon realized many those complaining, either did not read the “help” files regarding Rules and Fees, but rather jumped in to make a quick buck and only invested a little, thus the complaining about the withdrawal fee in particular. Maybe a Casino bet would be more appropriate for some.

    As you have mentioned, you are more inclined to a gambling nature yourself, causing you to make mistakes in the past, but are now learning to Copy those who know more. I myself do not have the constitution for gambling, though have done it in the past to my regret. However, now having retired and having funds in the bank doing absolutely nothing for me, I decided eToro was where I could at least get some interest rather than none, even losing on inflation and learn what I am doing through others.

    So, I am looking at medium to long term investments, not having to be concerned with the various Fees. Also, I have applied for a Debit Card linked to eToro where I can transfer funds (profit hopefully) to and use when needed. This has opened up a number of options for me.

    Regarding insurance, I contacted eToro, and as informed, they are a contributor to the ICF, and institution which hold funds as insurance for clients in-case of eToro bankruptcy. They will pay all Traders up to 20,000 Euro per customer.

    You mentioned Crypto exchanges. I bought some BTC in my own country when they were cheap, and regrettably sold them after a little rise. I have found another which may be suitable for international investors: Spectrocoin.com – Bankera.com. They might be worth a look.

  7. honestly your channel has the most genuine commentary on etoro I have watched. Thank your for posting yours videos, keep it up!

  8. How long does it take to lets say close a trade? I mean if I copy someone and he closes trade at 01:00 at what time will be my trade closed? If delay is big, I could lose much more money than him.

  9. These videos are great – thank you. I have a question.I followed Jay on open trades, back in September. Now its highly volatile I'd prefer to do new trades when I add funds to Jay. It doesn't have this option when I am adding a second round of money. Will a second round of deposits go to new or open trades?

  10. Hi, I would like to ask you why I am not able to copy a trader? I just added my first funds on my account but it says based on the information provided in your profile, copy trading is currently disabled in your account. Thx

  11. I recommend you and thank you for your explanations and mentioning the price difference between the trader and the moment you copy his opend trades, to make it maybe simpler should not the person try to copy someone at the times the trader opens and closes trades if the trader mentions it, in doing so you can't do nothing wrong i presume. Once again gratitudes mate and have a rentable and more importantly happy new year.

  12. Can you part copy ? Is it possible to select only the trades you want to copy on an account, or is it literally COPY ALL ONLY with the only two options being to "copy open trades" ticked or unticked

  13. I was wondering how to see how much of your money invested was being used in trades. Thanks for this! Have been bingewatching your videos just to learn more. You are an awesome teacher!

  14. Thanks for explaining exactly what I didn't understand, and making it so clear. Just to say that I find it useful to click on the P/L(%) column to make the trades line up from most to least profitable, to get an idea where someone I might copy is in the cycle of profit and loss.

  15. Hi Tom. First I want to thank you for your wonderful information on copy trading. I have one important question. Does Etoro allows further leverage for the act of copy trading? If A copies the trades made by B with a 100% capital allocation, and B makes a 5% return for the month, is it possible for A to make more than 5% through further leverage?

  16. Apart from crypto, If you cannot dedicate a huge protion of your week to analysing the markets / graphs you will not make money trading. just dipping in and out of the market with a small account will get you no were. to make money in stocks as a working person you are much better off working hard at your own job and transfering funds over into copy trading . its not exciting but thats a good thing. your money will grow.

  17. Thanks mister. I just started using eToro. Copy other people is great concept for beginners trying to make money in trading. 🙂

  18. through my experience of the demo I would say it's better to wait for new trades because you don't want to be caught buy a trader that has trades that are taking a downturn

  19. If you copy trade someone with open trades does it purchase at the current price or the price in the past the trade was made ?

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