Trading on eToro: A Scam or an Opportunity for Novice Traders?

Posted by Deb | Day Trading Journey | Thursday 25 April 2013 11:04 am

Is eToro a safe platform to do trade for people with none or little experience?

Trading Forex can be hard, and nerve wracking. You need to make decisions fast; decisions that may make you lose or earn big sums of money. It may sometimes feel lonely when you have to make these decisions without anyone to discuss with the possibilities. You may feel unsure of yourself, and would like to know what other traders are doing.

Sometimes you are just afraid to make these decisions yourself. You want to try trading and make easy profits as so much internet advertisements promise, but you don’t have any proper training for that. Even if you have taken a course or two, you may feel inadequate for starting trading on your own.

Click here and find out how to join the social investment network. Start making money with no FOREX knowledge NOW!

Copying from Another Trader

Copying from Another Trader

Imagine having an online community where you can discuss your positions. You can “look over the shoulder” of expert traders and see what they are doing, learn from them or just copy their positions. And if you lose, you can look around and see others who have done a similar mistake, so you don’t feel you have been so dumb.

The eToro presents an opportunity to do just that, by introducing the idea of a social trading network using the eToro OpenBook. The openbook is a place for traders who trade, share their theories and thoughts with others, and also copy each other’s positions.


eToro – The Social Investment Network

Introducing the Idea of a Trading Community

Click here for a walk-through explanation on how you can open a social investment network account and make money using the OpenBook!

How Can You Use eToro OpenBook Effectively

If you are a new trader, the main use of the OpenBook for you will be to find experienced traders to copy from.

Choosing a Guru

Choosing a Guru

You are looking for traders who have a good and consistent revenue, who are a good record of winning trades,and who do not take too many risks.

Open the People tab in the OpenBook and look at the lists of eToro traders you get. You can sort them by maximal gain, profitable weeks, etc. You can also define your own search – filtering for only traders with a certain minimal gain, percentage of winning weeks, minimal number of trades made in the period you define (last month, last 3 months, last 6 months or last year), etc. Then choose from the list of traders who qualify by your criterions the ones that seem to be making the highest and most consistent profit.

If you are a more practiced trader, use the OpenBook to see what others are doing. You can find like-minded traders with which you can discuss the ups and downs of the various markets, writing on their wall the same way you would do in FaceBook. You can also choose to follow some traders, being alerted when they enter a position or write something on their wall so you can compare notes.


Real OpenBook Discussion Example



Click here and find out how to join the social investment network. Start making money with no FOREX knowledge NOW!

How to Use eToro Webtrader

The Platform for Doing Your Own Trading

The eToro platform is currently geared toward FOREX and commodities trade. They have given the possibility to buy a few stocks (as Microsoft, Facebook, Apple etc.), but the tools for tracking the charts of these stocks are still missing. For FOREX trading, for oil, gold and silver, and for the main indices (SPX500, NSDQ100 and a few more), eToro Webtrader gives proper charts to track, draw lines etc. and make bracketed orders.


You can use the Webtrader for actual trading, but also for practice. When you open an eToro account you get a practice account of $10000 and you can practice as much as you like making practice orders etc. It can be very useful to play with practice money while copy more experienced traders with actual money, until you feel sure enough to make your own trading with actual money.

Become a Guru Yourself

The Way for an Experienced Trader to Make More Money Using the Social Investment Network


If you are an experienced FOREX trader, eToro gives you the opportunity to earn more money by have people copying you. If you have a minimum of 10 copiers who copy your positions, you will receive a monthly bonus which varies from $100 (for 10-24 copiers) to $10000 (for over 1000 copiers). You get this bonus without having to actually deal with your copiers trade. The copying is done automatically by eToro.

If you decide to become a guru, it is advisable to make some personal contact with your followers, at least at the beginning, through OpenBook. Explain some of your positions; apologize when losing trades – these small gestures will make people more likely to copy you.

Open Your eToro Account

Click here for a walk-through explanation on how you can open a social investment network account and make money using the OpenBook!

Do You Have Experience With Social Trading?

Please share your thoughts and experience by leaving your comments below.


Another One of these Days…

Posted by Deb | Day Trading Journey | Monday 22 April 2013 4:59 pm

Lately I write here only when I have bad days. Well, this is another such day…

In the morning I had a quick session, trading on one contract and making $25 (2 pips). I was glad and decided I will try again in the afternoon.

I started again an hour ago. It seemed the market will soon be going up, so I entered a longish position. The market was not quick to go up, and meanwhile I got a few phone conversations making me less alert to what was going on. Finally I got frustrated and quit on a small loss.

Then I entered on 2 small positions and reduced the loss to 0, although of course I still had a nominal loss of the fees.

I lost track of the time, remembered only there was a financial report due on 17:00, so I was not careful enough. The market was going up very quickly, and I was suprised what had happened and decided to join the crowd, expecting to make a small-medium profit just to erase the fees lost. But then, boom! The market turned around. It took some time to realize the markets in the US had just opened, and I was not supposed to be in a position. Till then I was just sitting here, looking at the market in amazement.

I won’t tell you how much I lost, but it hurt. I hope not to be so foolish again in the future!


I’ve Done it Again

Posted by Deb | Day Trading Journey | Friday 12 April 2013 5:15 pm

I had another day of stupid trading, which cost me over $300.

During the morning I didn’t have time to trade. I did think about trading, phantasizing about the profit I can make, and was very optimistic about my trading.

I opened my platform at about 14:30 Jerusalem time. I had still a lot of things to do before the Shabbat, so I didn’t have much time. I saw there was an opportunity for a longish position, so after some minimal checking (of resistance / support lines) I decided to enter with one contract, giving myself a big gap for the stop loss. That was my first mistake of the day – entering too quickly. I should have waited some more time before entering a position.

Only after entering I remembered I should be checking times of financial reports. I wasn’t too worried as it was still very early New York time, so I no report should be expected in the next few minutes. I saw I had another hour till the next report, and hoped I will be out of the position till then.

The market went against me, so I entered with one more contract a bit lower in the graph. I though the indicators were still good enough for expecting the market to turn around.

Well, it did turn, but it rise enough to give me a good profit. There were a few instances I could have quit the position with a profit of $12.5 on the 2 contracts, which would have given me a small loss because of the fees. I told myself this is my opportunity to quit with minimal loss, but foolishly I waited longer to see if I could get some more profit. I should have quit with at least one contract at this point. That was my second big mistake.

Time went on, the market went further down, and the time of the report was getting closer. I could have quit with a loss of $150 on both contracts, but I waited. I resigned myself to see what the influence of the report will be – for me or against, and accept the results whatever they will be. Of course, as Murphy would have predicted, the market went further down and I lost.

Foolishly enough, I decided to enter one contract in short position, to take advantage of the quick merket. That was my next mistake. At such a time the market is totally unpredictable, and I got scared very quickly loosing a bit more.

Now I am angry at myself, and frustrated: Will I ever be disciplined enough to trade? Is futures trading for me or should I give up?


It didn’t work today

Posted by Deb | Day Trading Journey | Thursday 4 April 2013 1:20 pm

I tried to work today to trade in the way I described yesterday: not to shy away when the market goes in the opposite direction. If I see a strong indication the market will eventually turn around, instead of quitting the position with loss I will add contracts to “average out” the loss.

I know a wiser way would be to quit quickly with a minimum loss and then enter again in a new critical position. That didn’t work well for me for psychological reasons: After one loss I felt it was a “failure day” and was afraid to enter a position again, or entered a foolish position making a second loss. On the other hand, when averaging out, if the market did turn around I usually made a bigger profit than I would have done just waiting it out without adding contracts.

Today I started out with a good short position. Quite quickly I took 3 pips with one contract, and waited for my second contract to be caught in its take-profit point. Before it got caught the market turned around.

In other such occasions I would at this point take the profit I can and quit. Today I decided to try and wait it out, and averaging with more contracts.

Well, this didn’t work out. The market went up and up. I added 4(!) more positions – something I almost certain wouldn’t have done on live trading, but finally quit when the losses got to high.

After closing the Transact platform and charts, I decided to look again and try to see if opening more charts such as the DAX, could have given me an indication to the market’s rise. Well, I couldn’t. The DAX and the S&P were going up together. What I did see was that the market did build a new critical point, just where my quit the position.

I entered again in a short position in the critical level. Again the market was not going down quickly enough, going up and down, so I finally quit, but this time with a small profit.

Conclusions? Well, I guess the averageing out method is not good, unless you have a real big account and can tolerate waiting out on big losses. Even than you will sometime have to quit on real big losses. Waiting out on the few contracts with which I entered is better, as the loss is not so big, but the chances for loss are bigger as the market will not always turn back strongly enough, at least not quickly enough for my patience. I guess running away in time, with a small profit or small loss is still the right solution, with the conviction and patience to wait out for a second chance.

What can I do when I don’t have the time to sit on this all day? I don’t know. I will be happy to hear from other novice traders for their experience.


After writing this post I went on to check my eToro account. Great news! My favorite guru (a guru in eToro is a person from which you chose to copy trades) has made a fantastic profit over 3 positions he had been keeping for almost 3 days. Yesterday and the day before these positions were in a bad loss, but the market had finally changed.

What do I learn from this? This person waited out for the market to turn as he predicted. He didn’t give up. On the other hand, he did not add contracts when the positions were in loss. I should probably learn from this. Only I couldn’t wait for so long, due to the leverage I am having on my trades. My account is big enough, so I have to close my positions on the same day. Maybe I should switch to FOREX exchange…


Back to Old Habits?

Posted by Deb | Day Trading Journey | Wednesday 3 April 2013 11:31 pm

I have made a long break from trading for the holiday of Pessach. Yesterday I went back to trading on the demo.

I am discouraged, not sure what I should do about trading. For some reason I was sure this time around would be easy, but it has not been so so far. Yesterday I again had a small loss. Today, I went back to my old habits, which have helped me make nice profits some time ago, but have also led to my ultimate failure in the last time around: I added more contracts to a failing position to “even out” the loss, and waited for the market to turn around to my original direction.

It worked. For a few minutes my loss was growing to $250, but than the market turned around and I quit with a profit of $100.

Does this mean I should go back to my averaging-out method?

On one hand, it seems this method usually works. On the other hand, when you do lose out while adding more contracts, you lose a lot. You need a real big account to be able to wait for the market to turn around.

From my experience in eToro, I see I am not the only one using this method. I guess I will continue to use it at least sometimes, but try to be more careful. Also, I don’t want to let my positions to drag on for too long.

In any case, I intend to continue with the demo for some time until I feel I am doing better.