Social trading does it worth?

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gamblehappier
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gamblehappier

Social trading does it worth?
« on: April 15, 2020, 02:16:56 PM »
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Do you believe that social trading can work?

Etoro is a famous platfom for copy people others work.For example you see 10 people that they have success in the last 12 months( or 2-3 years) and you can just copy and invest your money.It sounds too good to be true.

Of course most people will say that if someone has profit in the last 2 years does not mean that will have profit in future.But again its a good sign.If you see someone that has success after 1000 picks in soccer then it is possible to be a good tipster.

This copy trading style reminds a lot of Blogabet(but in Blogabet there are a tons of fake accounts,just to gain a money subscription).

What is your opinion?At Etoro you can find a hundred of profitable profiles.

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gamblehappier
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Re: Social trading does it worth?
« Reply #1 on: April 24, 2020, 05:08:43 PM »
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Noone here has any experience with this kind of trading?
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gamblehappier
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Re: Social trading does it worth?
« Reply #2 on: December 28, 2020, 01:09:59 AM »
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I want to give an update here and especially for e-toro(which is enough famous).This broker is not the best as it has big commissions so for no one should be the first option.There are much better europe brokers(interactive,degiro,revolut etc..)

But It is good for 2 reasons.
1)You can copy paste positive investors and test if some people will win lognrun.If they win you just copy(this means does not mean he will win forever and that you should stop your research)

2)You can see a lot of discussions about stocks and there are people who have a lot of knowledge. Of course there are a lot of mug punters but there are good conversations, especially for those who are not in this business for a long time.


« Last Edit: December 28, 2020, 01:55:15 AM by gamblehappier » Logged

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arbusers
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Re: Social trading does it worth?
« Reply #3 on: December 28, 2020, 07:25:15 AM »
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1)You can copy paste positive investors and test if some people will win lognrun.If they win you just copy(this means does not mean he will win forever and that you should stop your research)


You should be extremely careful with this assumption as it might lead to terrible losses. We highlighted indirectly the copying of other trades in our 2020 annual review here.
Go directly to 4:08.

https://www.youtube.com/watch?v=WrNF98MSjaA

The reason why I suggest you avoid this, is because you will never have at your disposal all the bets of these successful traders. How do you know they don't trade in other platforms as well? How do you know that their trades are not correlated with other trades and they are not a single leg of a multi-legged arb or trade?

2)You can see a lot of discussions about stocks and there are people who have a lot of knowledge. Of course, there are a lot of mug punters but there are good conversations, especially for those who are not in this business for a long time.

Unless you have a proven edge, most of the time, investing is a random walk. That edge might not work forever. Maybe the ugliest thing on the Internet is the uncountability of people who share their opinions and analysis. Again, you should trust those who risk their own hard-earned capital and not those who are simply telling you what to do, with no real consequences.

It might also worth it to mention that I learned this the hard way. Some 10 years ago I met a very prominent forex trader who had an impeccable record. However, little that I knew, his record was not a long one. So I connected my account with his account. By that time the lucrative term ''social trading'' was not coined yet. Guess what, after a couple of good trades... disaster came. The guy was using margin and my account was forced to use margin as well (I commented on the other thread you started about margin). Our capital was sucked in some minutes. By that time the capital that I lost meant a lot to me. But now, after these 10 years, I understand that was a good lesson to learn from.
« Last Edit: December 28, 2020, 08:14:54 AM by arbusers » Logged
CharlieSheen99
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CharlieSheen99

Re: Social trading does it worth?
« Reply #4 on: December 28, 2020, 08:58:39 AM »
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It's incredible how good are the worst things that happen in our lifes to be better, and to see everything from another perspective. It's called experience.
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Goojybooboo
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Re: Social trading does it worth?
« Reply #5 on: December 28, 2020, 09:52:10 AM »
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Ha, that video was my inspiration for my username.
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gamblehappier
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Re: Social trading does it worth?
« Reply #6 on: December 28, 2020, 08:18:34 PM »
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1)You can copy paste positive investors and test if some people will win lognrun.If they win you just copy(this means does not mean he will win forever and that you should stop your research)


You should be extremely careful with this assumption as it might lead to terrible losses. We highlighted indirectly the copying of other trades in our 2020 annual review here.
Go directly to 4:08.

https://www.youtube.com/watch?v=WrNF98MSjaA

The reason why I suggest you avoid this, is because you will never have at your disposal all the bets of these successful traders. How do you know they don't trade in other platforms as well? How do you know that their trades are not correlated with other trades and they are not a single leg of a multi-legged arb or trade?

2)You can see a lot of discussions about stocks and there are people who have a lot of knowledge. Of course, there are a lot of mug punters but there are good conversations, especially for those who are not in this business for a long time.

Unless you have a proven edge, most of the time, investing is a random walk. That edge might not work forever. Maybe the ugliest thing on the Internet is the uncountability of people who share their opinions and analysis. Again, you should trust those who risk their own hard-earned capital and not those who are simply telling you what to do, with no real consequences.

It might also worth it to mention that I learned this the hard way. Some 10 years ago I met a very prominent forex trader who had an impeccable record. However, little that I knew, his record was not a long one. So I connected my account with his account. By that time the lucrative term ''social trading'' was not coined yet. Guess what, after a couple of good trades... disaster came. The guy was using margin and my account was forced to use margin as well (I commented on the other thread you started about margin). Our capital was sucked in some minutes. By that time the capital that I lost meant a lot to me. But now, after these 10 years, I understand that was a good lesson to learn from.

Nice answer here Arbusers.You are right about people who may arb with other platforms.I do not advise anyone to just copy them,but could have a 2nd opinion.And of course,we are arbers, those on etoro are not.There are enough who use it as a main stock brokers.

Again you may found some interesting posts-discussions from people,i am not saying that all people there are experts.

Of course i do not have your experience,but i think to invest in stocks is not only a random walk.

In the longrun,stocks(Nasdaq,Nyse,not greek stock market) will grow if you know what your are doing and without having edge(when i say longrun i mean 5-20 years).I will keep your advise about "hard earned capital".

I will keep in my mind this story and again i am not fun of leverage.Only x2 with low interest rate,beacuse as you said it is dangerous.We should learn from losses and be more wise.

For the story,if you want to share,how much leverage you use,more than x5?








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arbusers
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Re: Social trading does it worth?
« Reply #7 on: December 28, 2020, 08:29:11 PM »
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For the story,if you want to share,how much leverage you use,more than x5?

If this question is for me, I use no leverage.
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gamblehappier
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gamblehappier

Re: Social trading does it worth?
« Reply #8 on: December 28, 2020, 09:00:31 PM »
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For the story,if you want to share,how much leverage you use,more than x5?

If this question is for me, I use no leverage.

Because you said your account was forced to use margin(which means could reach x2 of your intial capital,as the broker lend you money)
« Last Edit: December 28, 2020, 09:08:56 PM by gamblehappier » Logged

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arbusers
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Re: Social trading does it worth?
« Reply #9 on: December 29, 2020, 06:10:28 AM »
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For the story,if you want to share,how much leverage you use,more than x5?

If this question is for me, I use no leverage.

Because you said your account was forced to use margin(which means could reach x2 of your intial capital,as the broker lend you money)

Yes, that was 10 years ago when some brokers didn't allow you to use their platforms with no leverage.
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ilovethisforum
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Re: Social trading does it worth?
« Reply #10 on: December 30, 2020, 12:38:41 PM »
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Do you believe that social trading can work?

Etoro is a famous platfom for copy people others work.For example you see 10 people that they have success in the last 12 months( or 2-3 years) and you can just copy and invest your money.It sounds too good to be true.

Of course most people will say that if someone has profit in the last 2 years does not mean that will have profit in future.But again its a good sign.If you see someone that has success after 1000 picks in soccer then it is possible to be a good tipster.

This copy trading style reminds a lot of Blogabet(but in Blogabet there are a tons of fake accounts,just to gain a money subscription).

What is your opinion?At Etoro you can find a hundred of profitable profiles.

Hello gablierhappier. My take on this kind of activity(copy trading). In my opinion this feature has a powerful effect on the market(even though i don't like it). It creates a distortion of the market in the following way. As Etoro, Robinhood and all these broker of broker platforms increase their user base, they start to create a 2 layer market. The first layer is the popular/recommended- stocks that are available on these platforms and all the other stocks/commodities/cryptos/currencies that are not available on these platforms. Etoro for example has only the top stocks from the universe of more than 20K stocks(maybe more). All these investors that you and i can copy, have very limited amount of products to buy. This creates a very big buying power to these glamour stocks because there aren't really any other available. It is like to go to the supermarket and you are allowed to buy only stuff from the first shelf. Not only that, you MUST buy something of these stuff in order to create your profile and other people start to copy you!!! Imagine the buying power that these stocks will have and will create a snowball effect. While i am saying all that i will never trade in this platform to make money on stocks,but i will personally start an etoro account in order other people to start copying me.
« Last Edit: January 01, 2021, 04:25:48 PM by ilovethisforum » Logged
ilovethisforum
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ilovethisforum

Re: Social trading does it worth?
« Reply #11 on: January 01, 2021, 04:31:06 PM »
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A follow up after exploring more on their platform. Etoro is mostly for gamblers. They offer mostly CFDs in which they charge ridiculous overnight fees. This means that you cannot have your positions open for more than 2 weeks, because the fees will just take a big part of your future profits. You cannot use this platform for medium-term, long-term trades. It is only for short term trades, but with very big spreads. If you do the math, you will see that you cannot win long-term.
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gamblehappier
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Re: Social trading does it worth?
« Reply #12 on: January 03, 2021, 03:18:36 AM »
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Hello i lovethisforum,hope you are well.You should use Revolut if you think that Etoro has a small list of stocks :P

Yes,in general Etoro is not good option,i completely agree with you.Maybe its good to keep a small amount of money in order to watch discussions ,copy traders etc,but this broker should never be your main broker(or second broker) for all the reasons that you said.

If i am not wrong,if you have a profile,with a lot of copy traders,etoro gives you a lot of free cash.But again it does not worth it.

To say the true,was my first broker and i have won enough (park money for the long run).With those fees i will withdraw my balance and deposit to my main broker.I have read that they charge 50 euro for withdrawal.

Interactive brokers and revolut(main stocks,small list) are my main brokers.

Degiro i have heard it 's too good(not for margin,they charge 7/100 margin accounts) but never tested.

You what brokers you use?(if you want to share)

Robinhood never tested as i am not allowed, i think is only for people from USA.


« Last Edit: January 03, 2021, 03:37:59 AM by gamblehappier » Logged

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Blackoutt777
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Re: Social trading does it worth?
« Reply #13 on: January 09, 2021, 11:33:55 AM »
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Hello guys,

I am quite interested in eToro too. I would personally use it just for copytrading.
I have been running the virtual account for a year and the profits look very appealing.
Has anyone experience in copytrading with an amount of 10K or so? I am a bit concerned about the amount of bad reviews it is possible to find when you want to withdraw your funds/profits.
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arbusers
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Re: Social trading does it worth?
« Reply #14 on: January 09, 2021, 06:02:35 PM »
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Comments please on the following video:

https://www.youtube.com/watch?v=cMavJiCdS4E
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