Updates - Delay / Performance / Index

7:46 PM

Hey people, just as a quick update I have yet to deposit any money because I am working with etoro on changing my username but it is a long long process and has proven difficult. I do hope to get this in soon so i can get actually start investing money.

After my first post on selecting my traders, MY FIRST CRUSADE: SELECTING TRADERS, the second most popular post on the blog at the moment, traders performed well in the market all outperforming the index (you can read about the index here & here). 

If any reader has another list of traders we can compare to, do leave a comment I would love to see how I am doing. I do have something i paid for that gives a watchlist, but i have not been very convinced by the selection of traders.

In trying to be simple, etoro can become a tad too simple, and we do need to get clarity on matters via the traders’ posts. We can study all the information that is given on etoro to track performance and such. However, there are things that cannot be answered by the info given such as lot size per trade, timeframe traded and most importantly risk management strategy. At the moment I will be guessing.
Since, I have not managed to get many comments from the traders themselves so I will likely be scaling back on my investment. I will be putting in less initial capital than i was hoping. Although, at the moment I do not lack confidence in my methods, but until I get full clarity on some traders I will still not commit the full amount.

As such, I would recommend to all etoro users, please only invest money which you can stomach a 70% loss. So if you invest US$10,000, be prepared to lose US$7,000. Reason is simple, I don't yet understand what risk management is used by the selected traders, so be prepared to lose more than expected. The problem with skin in the game investing is we don't know exactly how much "skin-is-in-the-game". Maybe the trader we invested in has US$5,000 and has been using the minimum in their account to join the popular investor program and get copied. But in truth their net worth is US$500,000, it would not be a big issue for them to trade like a manic, get lucky and get really good returns, but if they get burned by the same strategy, they can walk away. They have earned your commission and they walk away.

Etoro is brilliant don't get me wrong, but there are a few things we need to make sure would not be contributing to losing your big money. Firstly, understand the trader’s strategy, without interacting with them, this might prove challenging.  If I get comments back from them, I will update you guys once I get it.

Stay safe people!

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