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How Much Can I Earn Copy Trading on eToro? | Video Review

One of the most common questions among people who consider copy trading as an additional source of their income is “How much money can I make copytrading on eToro?” or “Can I make living copy trading other traders on eToro?”

Here is a video we have found on Youtube that explains the math you have to do if you want to get this question answered.

The author of this video is trying to answer these questions and for those who would like to live off eToro earnings he compares copytrading to going to a normal job where you make $10/ hour which is $400 weekly.

In trading when you copy for example popular investor Wesley Warren Nolte (alias Wesl3y who made 83% in the last 12 month and has over 10,000 copiers) and he returns 4% in one month you need to calculate your earning based on the amount you allocated to copy him.

That means if you copy him with $100 you will earn $4/month, if you copy him with $1,000 you will make $40/month or if you allocated $10,000 to copy him you can take home $400 for that particular month.

But different traders earn different percentages on different months. Some months they can earn more, some months less and some months can be losers. Also each trader´s performance will differ each year.

Let´s get back to Wesley. In 2015 he made 7.05% profit while in 2016 it was 148.28% per year. In 2017 from january to august it was 32.99%.

So what you can do is to get trader´s average monthly return…for example 4% per month. And now, if you want to live off copytrading earnings you need to figure out how much money you need to put in in order to make your desired monthly income.

If for example you are happy to make $1,000 monthly and your selected copy trader earns on average 4% monthly you would need to allocate $25,000 to copy him.

So as you can see it is all about percentages and how much money you will earn copytrading on eToro depends on amount of money you put in. In normal job you earn based on amount of hours you put in. In copy trading it issize of your capital and your copytrader´s average monthly profit that matters.

More money you put in more money you can make. But also more money you put in more risk you stands. If your copytrader loses 10% per month you lose 10% of the amount you invested. Therefore you have to look for traders who statistically can trade and have a long positive trading record on eToro.

The author of this video also explains power of compounding. That means if you leave part of your profits on your eToro account each month you earning will grow and compound. So very soon your monthly profits will be bigger and bigger.

At the end of the video the author also warns not to put all your money in copy trading just to earn as much as possible each month. Trading itself is risky and you never know what can happen. So invest wisely and do not forget to diversify and copy more than one popular investor.

Warning: Trading carries risk. Only risk capital you are prepared to lose. Past performance in not an indication of future results.

 

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