in 🤕Brainfuck

Currently: On it and making profit.

How much profit have I made?

June: soon

For now I invested five digits. I plan on letting it work on its own but I’m only investing what I can afford to lose.

Why starting social trading

After venturing to Forex trading I had amazing results shortly after. Hell, I’ve been making a monthly salary just having some savings there. Banks can go to hell.

I got into all the “how to use money to make more money” mentality with my savings. Capitalism here I come.

I thought it was time for me to get even deeper into that world of stock and trading. What can I say, I love finance independency and passive income. But the thing is that I’m not willing to invest time on knowing how the market works. I don’t want to see myself in a boring trading position checking the stocks constantly and get stressed. Instead I decided to go for a social trading platform.

With social trading I can copy experienced brokers in a total automated way.

sell and buy

I plan on copying only the ones who know what they are doing. So this is more of a search of a professional profile, thank to understand the market itself.

Users can also post feed and information about the market or their strategies, and their are encouraged of being copied since they get a little piece out of it that can reach $10.000 a month. So I think of it as a Facebook for trading.

How does this work?

It’s as easy as registering here. Oh and the first 10 people to use my link will receive $20 dollars once made the first deposit of $200 minimum. There’s actually no point on depositing funds less than $200 because once start copying traders, most of the traders won’t be copied since there won’t be enough funding.

I tested a bit with the virtual money, but eventually a minimum investment of +$200 would be required to start making real profit. That’s why I’m here. Of course the more the better, because I’m not able to copy some trades from certain brokers if I don’t have enough money on my account. Obviously.

How do I analyses brokers to copy?

Important to take into consideration that totally avoiding how many copiers a trader has. It can happen than a trader goes viral just because a few users start copying him or her, but that doesn’t mean good results. I look for users to copy who:

  • Have been at least 6 month in the platform. Otherwise I cannot analyze properly their stats to see if they are just a few lucky guys.
  • Have a healthy return of 10-20-30% profit a year. High and sudden profits are dangerous because it also means that as it goes up it can go down.
  • They are online frequently. They post about the market and they seem to know their stuff on their feed.
  • The 6 month have has to be steadily going up in a healthy way. I’m not looking for newbies but for experts who know their profession.
  • Low-medium risk investments.
  • They don’t copy anybody (or almost anybody). They do their own trading.
  • No negative open trades (or minimum) that have been opened months ago hoping that the price will go up instead of taking losses with balls.
  • More than 10 trades open. Less than that it means is not enough active and doing the job.
performance

Not afraid of the red bars. That means the trader sets several points for stopping losses when the results are not in the right way. The ones with all green means that they are not likely to close the trades to face losses, so their indicators are green but actually they just didn’t close it.

I copy more than 10 traders. The more diversification the better. Since I check the platform constantly, sometimes I see the same trader with a huge loss or a hug profit. I don’t like this ones, so when they are in green I tempt to withdraw the money and put it in more stable users, or perhaps finding new good ones to copy.

Results of the users I copy

  • Trex8u247: 6,71%
  • DavidGiles: 5,32%
  • grents: 2,31%
  • MarianoPardo: 0,80%
  • Auenwald: 0,30%
  • Binardavid: 0,24%

I stopped copying some users for a couple of different reasons:

  • Too much fluctuation. What is the point of seeing a 50% profit one day if the next is -49%? I like stable increases and not big profits that then turn into red. In my opinion these users can make a lot of money but due their risk profile they also tend to lose much. Even if the green days are generally better than the red days, for my peace of mind I go for more conservative users. Users I stopped copying because of this: AlexPlesk, AlexandrYatsun, Jarodd76 and jaynemesis.
  • Too low return. The opposite also happens. If the gains are 0,20% there’s no point of using eToro. The human factor is to risk a little bit, that’s why I think that risk between 3-4 is perfect for me. Below that is too low for my taste. I’d put my money in a bank for that low return. Users I stopped copying because of this: Mystableprofit and arash007.

How do I approach social trading?

I take around 30 minutes a month to evaluate the traders and see how they are doing. If I see a bastard going from high green to high red, when its green I just take of the money and put it to somebody more healthy.

For instance, I’m following and copying a guy, at the end of the month I see that he has made a +5% of what I invested in copying him. I write it down. After a month I see that he has made +6% (+1%), then I will be putting more money in him.

I don’t consider any results of a single month for a logical reason. It might be that right the day when I check the gains, the user I’m following have had a bad day or decided to buy stock. Then of course the performance won’t be as good. That is the reason I consider at least 2 month before subtracting or not somebody from my copy list. Unless that in this social trading strategy I’m seeing he or she is making crazy stuff and the fluctuations are extreme.

In the other hand, if a user is gaining and losing all the time and what I invested in him or her reminds the same, there’s no actual point on copying that person. That’s why is important to write down and calibrate if I’m copying the right users.

It’s so important to take a medium-long term approach and not check the money every few hours. In the beginning I just wanted to close all the red and keep the green, but fluctuations make it go up and down, so its better to just open it once in a while to check that everything is in order.

In my case and in order to diversify, I look for brokers who don’t do Forex (because I already invest in there). So no euro, dollar or any physical currency. Or if they do, it has to be at a minimum. I focus on traders who buy and sell cryptocurrency, goods like gold, oil, silver and also users who buy and sell company stock.

Profit has to be made over several months, not weekly or daily.

The good old Andrew, Feint and this guide are pretty good articles on the matter. What I concluded has been a summarize of all the three and how I actually apply my strategy.