It’s interesting to ask how much you can make by copying traders on social trading platforms. There have been many instances online where people boast about the high returns that copy trading brings them. You’ll hear numbers ranging from 100 to 1,000% per annum. But is it possible for that to actually happen in real life?
You won’t make it big overnight, just like any other investment. Copy trading involves risk, including the possibility of losing capital. This is true even if you follow and/or replicate top performers traders.
According to studies, it is difficult to achieve 60-70% annual returns. This could be due to luck or taking great risks. We challenge you to prove us a copy trader who has had 5+ years of consistent 20%+ return.
It is realistic to expect a return of 5% to 20% annually from copy trading. This market is complex and you need to be familiar with it.
Returns depend on how much capital you invest. Naturally, 5% on a 1000EUR investment is not the same as 5% on a 100,000EUR one. Don’t risk capital that you don’t really need. You shouldn’t put your financial stability at risk by allowing this money to flow.
Fixed/term deposits and buying government debt offer higher returns, but so are the risks. Copy trading etoro is more tightly regulated because of the higher risks.
Social trading is a viable way to make a living. It will be hard if you don’t have a lot of money to start. Therefore, it’s prudent to expect some success but not instant riches.
Trading is simple over the short-term. Anybody can be lucky and make amazing returns in a few weeks, months or even a year. If they take their returns over a whole year, it could reach a few hundred percent. Many traders are tempted to let the seemingly brilliant trader trade for them, after seeing their returns on social trading platforms.
Trading is not easy long-term. It’s difficult to consistently generate low returns of even double-digits over many years.
Even the most well-known investors, like Warren Buffett, have only averaged about 20% per annum since he began his career in 1965. He is still a billionaire, and is widely considered the “world’s greatest investor”.
You can start small and allow your trading account to grow year by year. You never know, you might one day have enough money to live off of your trading account.
Past performance does not necessarily indicate future results. This is why investing has no guarantees. Copy trading is no different. It is important to identify traders who are more likely to repeat past successes and manage your team effectively.
Let’s talk about how people use one of the most popular Copy trading platforms, i.e. MTrading offers two ways to earn:
Trading has been a remarkable event in history, as we all know. One person who had invested $13,000 in Bitcoins during the peak of the 2017 bull market lost 75-80%. He persevered and, after a three year gap, earned 300 percent more through copy trading. Since then, many people have expressed an interest in investing and financial markets.
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