Forex $ocial Traders


Why should you avoid copying GREEN trades on eToro

If you are about to copy other traders on social investing network eToro I have one hot tip for you.

Many aspiring copiers make one HUGE MISTAKE when they start to copy other profitable etoro traders.

They simple check list of traders who made nice profit during past 6 or 12 months, choose some of them, hit “Copy” button and invest.

After few days or week they are surprised that the trader closed some trades in profit, but their copied trades are in loss!

Why is that?

It is because they copied open trades that were green.

Let me explain on simple example:

Imagine that you started to copy John Trader when his EUR/USD trade was $100 in profit. Suddenly market turns and run opposite way. John decide to protect his gains and close his trade with $80 profit. Good for him, right?

But because you jumped in when he was $100 in profit, your copied trade closes with $20 loss!!

Do you see why I do not recommend to copy GREEN trades?

green trades
Here is a proper way to start copy someone:

1) Choose your trader based on his performance and risk
2) Visit his stats and go to Portfolio section nad see his open trades
3) If there are green trades, do not copy open trades

That´s it.

This way you can protect your bankroll from unwanted loss.

Risk warning: Trading carries risk



3 comments to Why should you avoid copying GREEN trades on eToro

  • Jaap

    Can someone you copy on Etoro bust your entire account even if you only have 10% of your account allocated to this person and have a copy stop at 70%. Let’s say someone trades 100% of their account with 400 leverage in a single trade and the market crashes. Even though there is a stop loss sometimes selling is not possible. Will Etoro use the other 90% in your account to compensate the loss?

    • trader

      Hi Jaap, well… you talking about possibility of huge slippage I guess, right?

      I am not sure about eToro rules in the case scenario you described, but this scenario is actually unlikely to happen, because eToro currently allows copying traders who are part of so called “Popular Investor program” and to become one of those there are certain strict risk management criteria to be met, which are excluding possibility described by you, where using 100% equity to trade the same instrument with 400 leverage.

  • guru

    btw…popular investors are not allowed to trade with 400 leverage, only 50x