If you have recently read the page My Investment Portfolio maybe you already know that I started to invest on eToro. eToro is a social trading and multi-asset brokerage company that allows investors to trade on the market or to copy other traders.
I made a payment of 500 EUR and the platform exchanged them in dollars, giving me 557,70$. Money has arrived on my balance yesterday and I soon decided to copy two different traders. Honestly, I chose these two traders many days ago, but I had to wait the money.
I insert a picture of my portfolio as it appears at the beginning of the adventure. As you can see, I chose to copy OlivierDanvel and kela-Leo, with 307.70$ and 250$ respectively. I decided to invest on them because their average risk score is not too high (1 and 3 respectively) and, for the moment, I want to test the platform while copying traders with a low risk score. Maybe in future, if I add more capital, I’ll copy riskier traders.
These are the results one day after the begininng of my adventure on eToro, so they are not explanatory at all. I recognize that maybe these sums are not too good to follow these traders. I read on their profile that the suggested amount of money is 500$ each, but they also say that 200 or 250$ are enough to copy all their transactions. Moreover I really like diversification, so I believe this is the best solution for me. Putting all the money on just one trader would be dangerous.
One important aspect that I kept in consideration while I was choosing who to follow were the assets traded.
OlivierDanvel trades only currencies. kela-Leo trades mostly currencies (65%) and commodities (34%).
I made this choice to be protected in case of recession during the year. By not dealing with stocks, their operations and returns should be less affected by a bearish market.
My expected annual return, after checking their historical return, is 12-15% for OlivierDanvel and 8-12% for kela-Leo.
Remember that on eToro you can also trade singular stocks or Market Portfolios. Market Portfolios are portfolios builded by eToro with a specific theme. You can choose between a portfolio dedicated to cryptocurrencies, to renewable energy and many more. Keep in mind that the minimum investment on this kind of portfolios is 5000$.
I’ll keep you monthly updated about my portfolio’s performance and I’ll also post the monthly performance on the My Investment Portfolio page. I think that for the moment that’s all guys. If you want to know more about eToro, let me know in the comments!
See you soon!