Okay so another question which is a really good simple one - it's a basic
one is "What happens to my money when I'm copy trading? What happens to the profits
that I make? Do I have to sort of take those profits out and reinvest
them in the person I'm copying or can I just leave them? What happens to them? So
the big thing - the clever thing about copy trading, especially on eToro
is - it uses my funds as much as it can... So, when you're trading, obviously it's your
money that makes you money... okay - the more money you're trading with, the bigger
your trade sizes are. The bigger your trade sizes are, the bigger profits you
can potentially make.. So it wants your money active all the time. It doesn't
want to just leave money... I don't want to just leave money sitting around doing
nothing. My money is what works for me and makes
me more money - so they know that, all right... So their goal is to constantly get
your money - any profits you've made, and ... 'how can we use them as well in future
trades?' So when I copy someone - let's say I copy him with $100. That's the original
amount I copy him with, and when I copy someone
obviously I don't copy - I don't make trades - the same trades as they do with
the same amount of money, but I make the same trades in the same company - if the
person I'm copying buys Tesla, I buy Tesla. If they use 10% of their account
size on it, I use 10% of the amount I've copied them with on it,
alright? So the money may be different because they may have millions in their
account - so 10% of their millions is a lot of money... 10% - I can't make, you know -
If I've only got $100 copying someone, I can't make a trade on Tesla with $10,000 -
I don't have that much money. So I buy Tesla because they bought Tesla. They
spent 10% of their money on it - I spend 10 percent of my money that I copied
them with on it ... all right. So let's say - so the goal there is that I get the
benefit of their experience in what they're buying, and I use the same
proportion as them, okay... But it might be a different amount of money. So, let's say
I've made my trade with $100, and I start to make... This person over time through
various different trades, he's made me another hundred dollars in profit which
is awesome - he's made me 100% profit - it takes some time, he's bought lots
of different things - overall I've got a hundred percent... Each day, at the end of
the day, what Etoro's doing is - it's not leaving your money just
idle. That's, I think, the worry...is "If I copy someone, will it be that my
future trades - my future 10% trade on Tesla - will be based on that $100
I copied him with?" you know, "Will that stay the same, and then my profit is
kind of kept separately in some separate thing and I have to withdraw it but..." No.
No it doesn't do that. It knows that your money, your profits - the best
way to use them is to put them back into the amount you're copying him with, so
that when he makes a trade of Tesla in the future with 10%, he's now making a
trade - you're making a trade with a bigger amount... O.K? So your original one -
your hundred dollars... You'd make a 10% trade - it would be $10...
but if you've made another $100 profit, you want to use that $100 in
future trades - you want to make bigger trades so your account size can grow...
And Etoro's doing that every day. So, it looks at the end of the day - How much
money did you invest in originally? But how much profit have you made? And those
profits will be used in future trades automatically. When he makes a trade in
future with 10%, if you've made an extra $100 profit, you won't
make a trade with 10% of 100 - your original amount... You'll now take into
account that extra hundred dollars - so you've got two hundred dollars... And it
will make a trade with 10%, so it's now $20 you're
making that trade with. So it wants to use your money. It doesn't just, like, use your
original amount and let the other just - let your profits just sit there idly... There's no
idle money - Your money is really your key asset here, you know. It's not like... That's
what makes money in trading... It's not something you build, or something you do,
or something you ... It's your money - the more it can be used actively, the
better - so that's what the system's doing, okay? So, if you just leave it, it's
constantly using your profits actively in newer and hopefully bigger trade
sizes, you know. So it also - if you've made losses - those will account, so your trade
sizes will get smaller automatically as well... But we're picking good traders,
we're looking for the right people, so hopefully they're making profits
and that's what's happening - it's just growing over time. So let's say you
actually - that's if you leave it... Let's say you want to withdraw your money, and
you want to take some of those profits out. So there's two ways you can do it.
Either you can go to your portfolio, find the person you're copying, and you can
click on them, and on the right here - there's 'Add Funds',
'Remove Funds', 'Pause Copy', 'Set Copy Stop....' - the two
we're interested in are these ones - 'Remove Funds' or 'Stop Copying'. So in Etoro
obviously we have this screen at the bottom - 'Available', 'Total Allocated', 'Profit',
and 'Equity'. Your available balance - whatever's in there - your available
balance, that's the money you can actually withdraw from eToro
in total, O.K. So there's two different withdrawals we're talking about here - one
is to remove funds from the copy, and if it's here, we can withdraw funds from
eToro as a whole. So, if you withdraw funds - remove funds from a copy, it means
you keep that copy open - you're still copying - I'd still be copying Jay, but I
remove some of the funds that I'm copying him with because I want to do
something else with them - I want to make a new trade, I want to remove some of
those profits he's made me to make a new manual trade on Ethereum, or Bitcoin...
Or I want to copy someone else, or I want them in my available balance so I can
withdraw them from the system as a whole. So... When I go to remove funds -
at the moment it says I can remove 20... Why can I only remove 20? I have like, you
know, 567 copying him - it's only letting me remove 20... Why is that?
It's because the rest of the money that I have copying him is actually being used
in open trades. So, those trades would have to be closed so that I can withdraw
it. So how can I see what he's using? So, I can go into my portfolio, click into Jay -
here's a list of all the trades I'm copying him with, okay. So he's opened all of
these trades, and I've automatically opened all these trades as well because
I'm copying him. If I go down to the bottom - here - 'Total Open - 524.52' That's the
amount of my money that I've copied him with which he's actually using at the
moment in active trades, okay? So that money's kind of tied up -
I can't withdraw those funds at the moment... If I wanted to, I could close some
of these trades manually - that will make this number smaller because he'll have
- less of my money that I'm copying him with will be used in active trades... and from
there, if I withdraw some of these and I go back, and then I go to 'Remove Funds',
that number won't say 20 anymore, it will be bigger - because I've closed those
individual trades and I can remove that money. If you really need to, and you
really want to, that's how you can do it. Obviously, we copy these guys - or I
copy them, at least, because they're smart and they're experienced, and I value
their judgment - so I don't want to be closing trades that they've opened
manually. I want to let them decide when to close that trade for maximum profit.
But if you need to remove funds quickly for some dire reason, that is a way you
can do it - you can remove funds from the copy whilst keeping the copy open.
Alternatively, you can stop copying him. If you stop copying him, it's going to take
all of these trades and it's going to close them all, and return all of that money to
my available balance - then I can do with it what I want... I can copy other people,
withdraw it from me Etoro as a whole - There'll be the $25 withdrawal fee...
Or I can just start manual trades on whatever I want. So those are the two ways I can
withdraw the money. Either remove funds whilst keeping the copy open, or stop the
copy completely and that's it - I won't be involved in his future trades unless I
copy him again. When you stop the copy overall, something that can happen is it
can - there can be a delay on it actually closing. So let's say I've stopped the
copy, and a day later it's still saying it's 'Pending' - it hasn't stopped the copy...
Why is that? It's because he's trading all of these different things, and some
of them - they're all on different exchanges... So let's say 'Shopify' - that's an
American stock - I believe that's a US tech stock, so it will be traded on the Nasdaq...
Bitcoin - cryptocurrency... You can trade it 24 hours a day 7 days a week - no problem.
'Intel' - US tech stock. 'Western Digital Corporation' - US Tech Stock - so it can only
close these trades when the relevant exchange that they're listed on is open. So,
for the US tech stocks, exchanges aren't open all week, 24 hours a day, 7 days a
week, alright - They have certain open times - it's like 8 hours a day or 7 hours
a day 5 days a week... They don't actually work that much. So the exchanges have to
be open to buy or sell something that's on that exchange... So if I stop the
copy at midnight - middle of the night or whatever, the American exchanges are
probably closed, so it has to wait till they're open, and then it will close my
trade with Western Digital Corporation - which was made through Jay... When they're
all closed, then it will stop the copy completely, return the funds to my
available balance, and I'll be able to do something else - whatever I want with that
money. I had a situation really where there was a German guy who sent me a ... or
someone - he sent me a message saying you know "I've stopped this copy, it's
been two days, three days - why hasn't it stopped?" So he stopped it on, I think, very
late Friday night... So obviously - Saturday, the exchanges
aren't open. So his copy stayed open - it was still waiting - 'Pending Close', waiting for
it to close them all... Sunday - they're not open, so that was waiting, but it was
Monday and they weren't closing and we were like "Well why?" So I looked into it, I
looked at his portfolio, and he had one stock in Volkswagen.de - it's a German
stock... So it's obviously traded on the German exchanges, and so I checked - so I
checked the German exchanges, and it so happened that on that day - on that
Monday, they had a national holiday in Germany, and the exchanges - you can go onto
the exchanges and see when are your... your holidays - exchange holidays, and
that Monday was a special day in Germany - national holiday, the exchanges were...
were closed, so he had to wait till the Tuesday - till the German exchange was
open, so that it would automatically sell his Volkswagen.de stocks, and when it
did, then it closed and he said "Oh it's okay, it's done!" and on the Tuesday he was -
he was out... So that's something you want to be aware of - When you stop a copy, you
have to wait for the relevant exchanges to be open so that all of the trades
which they have opened for you can actually be cashed out with the right
amount of profit or loss at the market value and you see it reflected. So that's it -
that's kind of what you can do... Either remove funds, stop the copy
completely, or leave them in there - and if you leave them in there, any profits
you've made will automatically be used to make bigger trade sizes in future
and hopefully make you more profit...
That's it.