In this chapter of the eToro tutorial, we will be focusing on the social and copy trading functions of the platform. In fact, as we have specified in the introduction of this eToro guide, this platform is characterized by the fact that it is both a social and a trading platform.
But what does social mean? Just like other social networks, it means that on eToro, you can communicate with other users, write posts and share them with the eToro community, read other people’s posts and participate in discussions.
In this article, we will talk not only about communication but also about the aspect of copy trading, i.e. the ability to automatically copy other investors.
Why communicate on eToro?
While communicating is neither mandatory nor indispensable, it can be an additional weapon. For example:
- For those who have never done online trading, as well as practice with a demo, can read the comments and posts of other experienced traders to get more information on the subject (in this regard, choose them with some ‘care’ as explained in this article)
- For those seeking confirmation of their own analyses and/or forecasts
- For those who do not have time to carry out analysis and prefer to have “guru” users do it whose skills are appreciated
- To liven up the trading activity since interfacing always and only with a platform full of figures is not the same as interfacing with other users
- Because the large number of users present on eToro also makes the competition between experienced traders very high, who always try to offer the maximum to their followers and copiers, so as not to disappoint their expectations and continue to make profit together.
There are many other reasons to communicate on eToro but everyone has their own. Therefore, what you really want to know is that on eToro you can trade interfacing with many other users around the world. That said, please personally evaluate any aspects for which you might benefit by registering with eToro.
The eToro Notice Board
Let’s start getting to know eToro’s social functions. From the left column on the platform, click “News Feed”.
On the right side of the platform, the eToro bulletin board will appear (see below).
We immediately realize two things. The first is that it looks a lot like a post on Facebook or Twitter with the possibility for the reader to put a like, comment and share. The second thing we notice is the international aspect.
As we have pointed out many times, there are users on eToro from all over the world, so you can also find many posts written by many users in their own language.
From the previous image we can see that:
- The posts of eToro users are actually filtered so that only those published by users who have written in English appear
- There may be comments in another language, as the filter allows you to view posts in English, while comments may be written by users of other nationalities and therefore usually in another language. However, there is an excellent “translate” function that allows you to view the translation of the comment. If you are having difficulty with a particular comment that you are interested in translating, ask other users for their help.
By selecting and clicking “Popular Investors” from the menu at the top right, you can access the section on popular investors.
But who are the Popular Investors? They are the most popular investors operating on the eToro platform.
They are therefore the most highly regarded eToro trader users for their trading activity on the platform. It is no coincidence that you can see how they edit their posts by publishing analyses with graphs and studies.
Follow, Copy or Become Popular Investors
Popular investors can be copied. The copy trading function, which we will discover in the next paragraph, allows you to automatically copy the work of one or more traders you trust most or who believe potential sources of income.
Popular investors can be simply followed, in order to read their posts and stay so up to date on their work, perhaps using some ideas (if not all ideas, no one forbids it!).
Again, you can become a popular investor. If you know how to do it or if you become an expert, you can gain popularity, follow or even copy, thus earning extra money for each copier. You could turn this activity into a source of profits that go beyond those possible through online trading.
Read more: Complete online trading guide (updated)
CopyTrading: How to Copy Other Traders on eToro
To get to the heart of “active” social trading, that is, the one that actually touches the trade and the results, you need to access the “Copy People” section by selecting it from the left column. You can find it just under the “People”.
Once you have clicked on people, numerous entries will appear on the right side of the platform and we will go on to explain them to you.
The parts to keep in mind on this page are as follows:
- Filter bar: it is located at the top and lets you find people based on very precise filters that you can set as you wish
- Editors’ Choice: these are popular investors particularly appreciated by the eToro team
- Top Investors: Here you will find investors with the highest rate of return
- Trend: investors who have gotten more copiers in recent days
- Most copied: investors from the most copiers
- Low Risk Score: Highlighted investors with a low risk score
- Medium Risk Score: Highlighted investors with an average risk score
In each investor box, you will find information on the annual profit, the number of copiers, the percentage change in copiers over the last 7 days, and the degree of risk of the investments made.
The filter bar
We have seen that at the top of the “People” page there is also a filter bar.
By using it, you can select investors based on precise characteristics.
The items that make it up are as follows:
- People from: from here you can select the country of origin of the investors you wish to view on the page
- Who has invested: the type of market in which they have invested (stocks, materials, cryptocurrencies, etc.).
- Earned at least: the minimum percentage of earnings in a given period
- During the: the period referred to in the previous item
- GO: button to display the results according to the filters used
- Advanced Search: this item will allow you to set many other filters, even more specific
How to do Copy Trading on eToro
When you click on a popular investor’s photo in order to see his profile, it will look similar to the item below:
In addition to details regarding the yearly performance, which is useful to better assess the performance of the investor, at the top right are the buttons “+” and “Copy”.
The + button allows you to follow the investor. This means that you will become his follower, add his profile to your favorites and receive his updates on the bulletin board.
By clicking Copy, you can start Copy Trading. This means that you will carry out the same operations as the copied investor.
You can set the investment on the selected trader, as well as set a “stop loss” in case the value of the copy falls below a quota (in cash or in percentage).
By setting the Stop Loss and if the results of the investor copied were unsatisfactory, the copytrade would automatically stop if it reached a certain threshold of loss decided by you.
The more confidence you have on the copied investor, the more percentage you will give him with this last option.
When you click “Copy”, the investor will appear in the Portfolio section, which you can access from the left column of the platform.
By clicking the wheel on the right, you can add funds to be allocated to the copy of the investor, remove them, pause the copy, set the Copy Stop Loss, stop the copy, write on the notice board of the investor, and see the graph of its returns.
So, in case the copied investor does not satisfy you or you wish to give him more confidence with other funds, you can use this wheel in correspondence of the investor followed in the “portfolio” section.
Choose carefully who to follow or copy
When selecting traders to copy or simply follow, there are two very important factors to bear in mind:
- Your goals
- A careful choice that doesn’t care much about profit percentages
Before deciding who to copy, you should ask yourself what your goals are, for example at 1 month or 1 year. The more moderate the objectives, the more likely they are to be moderate. The more daring the goals are, the more difficult it will be to achieve them.
However, everyone is free to decide whether to aim for a more likely profit or a higher profit but with more risks. The important thing is to be aware of these risks.
Let’s go back to the image of the investor’s profile.
For the investor’s assessment, consider not only the “panoramic” data but also the details. For example, by clicking “Portfolio”, you can see what you are investing in, instrument by instrument.
Again, by clicking “Charts”, you can see the performance charts as if they were “quotes”, to which you can apply even if you want to apply technical indicators.
Finally, in “Feed”, you will find all the posts published on eToro by the investor.
Overall, considering all the data on the investor’s details page, you will be able to get a clearer idea and better evaluate whether it can do it for you or not.
Requirements to become a Popular Investor
To become a Popular Investor you must first open an eToro account and make a deposit. You must then complete your profile with a photo and your account information. It is important for those who wish to become Popular Investors to describe their trading strategy in their biography and share their name.
Afterward, everything will depend on both your trading and communication skills. In fact, trading does a lot, but it is communication that is soaring. Show off your talent and commitment. When you start getting followers on a snowball it could become an avalanche in your favor.
Once you have your first copier and meet the admission requirements, you will be ready to be accepted as a Popular Investor.