How should you choose who to copy?
I think before you even start looking you should first of all spend a little time right at the start trying to identify what your own objectives are.
Try to write down a few lines that clearly states what you hope to achieve by copying someone else.
This might be a set percentage of profit over a particular time period. It might also include objectives unrelated to profit, but more about gaining experience and learning how to trade yourself.
Identifying your own objectives early on will help you to search for the right type of PI or indeed a Non-PI.
It will assist in aligning your goals with theirs and hopefully finding a good fit, but also, later you can assess the success of your investors by gauging whether they met your objectives.
Now its time to choose and eToro provides some great tools to assist you.
1) Editors choice. This provides a monthly list of some diverse traders who have a low risk and who fit all the copy criteria. A great place to start your search.
2) Copy Search Function. On the main menu, you will find the ‘Copy People’ link. This is a really useful tool that allows users to search by region, profit, instrument….and many more. Explore and learn more!
3) Virtual portfolio. This is another great tool that allows you to copy with virtual money before you decide to commit. Why not check your choices for a month or too, before jumping head on in.
4) Use the follow function for both people and instruments.
Then there are many other more creative ways of searching too. You can ask the platform by joining in on a conversation, or see who comments regularly on the instrument walls that you follow.
Other criteria for choosing might include the following:-
PI or Non-PI
Number of Copiers
Number of trades closed
Communications skills: frequency, dialogue quality, speed of response, frequency of posts
Use of other media that you use also like Facebook, twitter or Twitch
What do they trade, or what don’t you want them to trade 🙂
Historic Drawdown – useful when setting copy stop
Length on the platform
What level is the PI Cadet, Rising Star, Champion and Elite
Choosing who to copy is a skill in itself. You can copy someone who does just that!
Finally, a few words on copy expectations….
All investors come here with differing levels of both knowledge and experience. However, we are all here for the same reasons. To learn, to share ideas and make lots of money 🙂
There are many types of trader using differing techniques. Most will use different time frames. Investors need to allow those managing their funds the time and space to grow their funds.
For this reason, I’d always suggest a minimum copy period of one year.