Featured Site eToro Open FREE Account Visit Broker If you want to know how to make money on eToro broker then you must avoid these mistakes below: Avoid these to... more" />

How To Make Money On eToro

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If you want to know how to make money on eToro broker then you must avoid these mistakes below:

Avoid these to make money on etoro

Some eToro CopyTrader users, including myself, have made a mistake and as a consequence we have lost a high percentage of our equity. If you want to know what is the mistake I am talking about and how to avoid it, please keep reading the rest of this article.

The mistake I am talking about is opening extra trades manually without certain precautions. “Opening extra trades” is a term I saw another trader using so I adopted it; I also read someone refer to this practice with the term “parallel copy trading”. Let me explain what it is all about.

When you copy a trader, every trade that opens automatically on your account is proportional. That means that if the trader you copied has an account with $10000 and he usually trades with only 1% of his money, then he will open trades with $100 each. On the other hand, if you are copying that trader with $100, your trades will be opened with only $1 – which is 1% of $100.

By using that small amount of money per trade you cannot expect to make a huge profit. Therefore, many of us are tempted to open extra trades imitating the trades that the trader we copy opens, but using more money with the hopes of making a bigger profit.

For example, if the trader we copy opens a trade selling EUR/USD, that trade is copied automatically on our account with a low amount of money (assuming we are copying the trader with a low amount such as $100). And we can open a trade selling EUR/USD as well using $10 from our unallocated balance to make a bigger profit.

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While this “trick” can result in bigger profits, there is also the risk of bigger losses since we may have poor money management skills and many of us don’t know much about financial markets.

To reduce the risk of loss when opening extra trades, I suggest 3 things:

1- Make sure you know the trader is good by copying him for a decent period of time before imitating his trades with extra money.

2-Use only 1-5% of your total equity per extra trade.

3-Make sure you copy the trade by clicking “Copy” on his Opened Trades list (located in his Portfolio), and don’t open it yourself directly on the Trading Platform. This makes sure you have the correct settings such as risk level, stop loss and take profit values.

Ignoring the 3 suggestions above may increase the risk of loss by opening extra trades in a careless way.

However, my strongest recommendation is that you stay away completely from opening extra trades because the traders we copy know what they are doing. On the other hand, most of us are just copiers who don’t know much about the market and it’s not smart to risk your money like that.

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