CopyTrading Tips: Avoiding Common Beginner Mistakes

If you're new to CopyTrading, here are some valuable tips to help you avoid the most common mistakes beginners often make—mistakes that can lead to unnecessary losses.

1️⃣ Think Long-Term, Not Short-Term - CopyTrading is not a "quick win" strategy. Don’t approach it expecting returns in one week or even one month. Whether copying us or any other investor, you should have a long-term horizon of at least 2–3 years. That’s why it's vital not to invest funds you may need in the short term.And please—avoid the “Popular Investor scalper” mindset where you copy and close the position after a 1% gain. This approach rarely works and typically ends in disappointment.

2️⃣ Understand How Copy Execution Works - When markets are closed and you copy an investor, the trades don’t appear instantly. If someone holds $AAPL or other US stocks, and you copy them on a Saturday, you won’t see these assets until the market opens on Monday. This isn’t a malfunction—it’s simply how the platform operates.Don't panic and cancel your copy—patience is key.

3️⃣ You Start at Market Price, Not Historical Price - When copying, you're purchasing assets at the current market price, not the price at which the original trader bought. So, if they’re up 50% on a stock, your position starts at 0%. This naturally creates performance variation, and it may take time—sometimes years—for your portfolio to align with theirs.

4️⃣ Your Copy Includes Their Cash Allocation - If an investor is 80% invested and 20% in cash, and you copy them with $1,000, you'll see $800 invested and $200 held in cash. This is perfectly normal and not a system error—it's a reflection of their portfolio structure.

5️⃣ Avoid Unnecessary Copying In & Out - CopyTrading is commission-free, but you still pay spreads on each trade. Opening and closing a copy within hours will only cost you money unnecessarily. Often, users close early due to delays in asset replication (see point 2), mistaking it for a problem. Stay calm, stay invested.

6️⃣ Do Your Research Before You Copy - Before copying an investor, take 24 hours to read through their profile, strategy, and recent posts. If, after doing your homework, you're still confident—then go ahead. But if you're unwilling to learn about who you're copying, CopyTrading may not be the right fit.

7️⃣ How Automatic Reallocation Works - If the person you're copying deposits more funds, your copy will automatically rebalance over time. You're not obligated to match their deposit, but rest assured, the allocation will adjust gradually to mirror their portfolio.

8️⃣ Don’t Use a Tight Stop Loss - Setting a copy stop loss at 90% can lead to premature closure—often at a loss. Instead, consider copying with a smaller amount and placing your stop loss below 50%. Allow the trader time and space to manage drawdowns effectively.

9️⃣ Know the Terminology First - If you're unfamiliar with any of the terms mentioned above, it's best to pause and learn. Understanding how CopyTrading works is essential before putting money on the line. Also, use the Virtual Portfolio—it mirrors live performance and is a fantastic way to learn with zero risk.

This post will be reshared periodically for those new to eToro and CopyTrading. If you're just starting your journey, we hope these insights help you make better, more informed decisions.

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