Alright, so another question I've been asked, and it's another good question, but it's got
a bit of a tricky answer - is 'How much money will I make on Etoro?'.
People say that ... 'How much money can I make copytrading?'
I'll be telling someone about it, and they'll say "Alright, can I make enough to live off
Copytrading on Etoro?" and that depends ... That really depends on a few things.
Let's say I go to, I got to "copy people" which I'm already in - let's go back to Wesley,
because, you know, today's Wesley Day for some reason...
Alright, so, when you do a normal job, you work - let's say you work 8 hours and you work for $10 an hour...
Alright?
That's $80 - you've done 8 hours work for $10 - $80, that's how much I make.
So in a week you'll make, you know, 5 times 8 - $400 or whatever you make, you know.
You work a certain amount, and you're getting a certain amount of money.
So, with this, with trading, it's ... Let's say, so let's go to August - in August, here,
Wesley made 4% so far.
Let's do one that's closer, no let's do 4 because it's a nice round number and easier
maths.
Let's say he's made 4% in August, alright...
So 4% is the amount of percentage - you end up thinking in percentages...
Kind of for a good reason.
So 4% in august.
So let's say I have $100 in copying Wesley.
4% is $4, O.K?
Let's say I have $1000, O.K $1000 and I've made 4% - $40.
See where I'm going with that...
10,000 - $400 is 4%.
$400 is 4% of 10,000.
So really, different traders will make different percentages alright, so you're always looking
for someone - I mean he's made 83.31% so far in the last 12 months.
I go to someone else - Let's go to Jay because good old Jay, he's made 291% in 12 months.
Different people - I go back to the copy people bit, let's go to Alex Plesk - he's made 114%
in 12 months.
He's made 2.68% in August.
Let's go back, and we'll look at this guy here - Reinhardt Coetzee ... erm sorry, I
don't know how you pronounce your name.
He's made 0.98 loss in August, but he's made 43.16%.
So different traders will make different percentages in different months.
You can't predict how much they'll make - what you look at, is you go to someone like Wesley,
you look at his previous stats - 2015 he made 7%, 2016 148%, so far this year he's made
32.99%.
See this 83.1% here, that's how much he's made in the last 12 months.
So it takes in the last 4 months of last year as well.
You see, that's why those two numbers are different...
83 and 32.
So what you look for with a trader is consistently making money, but you can't predict how much
they're going to make in any given month.
You can sort of average it out, you know - you can take the amount they've made in the last
12 months, divide it by 12 and there you go, you've got an average per month.
So let's say 4%, let's say 5% is an average - let's go with 4, alright, forget it - let's
go for 4% is an average that a trader makes.
So what you have to work out is how much money - if you want to make a living off it, and
let's say your living is 'I want to make $1000 per month.
I can live off $1000, happily."
So you've got to work out, how much money do you need to put in so that 4% extra equals
$1000.
See what I mean?
So let's say it's - with normal jobs, your time makes you money ... Your time and your
effort make you money.
In trading, your money - your actual capital is what makes you money.
If you have 4% of 100, it's 4$.
4% of 1000 is $40 O.K?
So both of those people - if someone's got 100 in their account and someone's got 1000
in their account, they're both making 4%, they're both copying Wesley, they're both
doing nothing, because the system's wonderful...
Wesley's doing all the work, and we're reaping the rewards, the fruits of their labours,
and we've both made 4%.
Me over here with my $100...
That guy over there - 'Freddie' with his $1000.
Me and Freddie have both made the same return, we've both made 4% but I've only made $4,
Freddie has made $40 - he's made $36 more than me for doing the same amount of work.
Why?
Because he has more money...
You know.
So some guy who has $10,000 in there - 'Pete', on the end of the chair.
Pete's got $10,000 in there - he's done the same amount of work as me and Freddie.
I've earned $4, Freddie's earned $40.
Pete with his 10,000, he's earned $400 - he's done the same amount of work.
Just because he has more money, he's made more money.
See we think in terms of percentages, but precentages of your overall money.
So I think that's how the rich get richer.
Can you imagine the billionaires?
This is what I said to someone..
Can you imagine the amount of money ... They make 4% on a billion.
I can't do the maths, it's a lot of money.
So... what you have to work out is...
If you want to - first you have to find, everyone's looking for the traders who make a lot each
month.
That's you know, kind of common sense.
But it also depends on your capital, you know.
How much money have you got in there.
So to make - let's say you want to make $1000 and your trader that you're copying make on
average - he won't every month ... Sometimes he'll lose 2%, sometimes he'll make 14% - yaaaay,
good month...
So let's say he, on average, makes 4%.
You want $1000 a month to live on.
How much do you need to copy him with?
Alright, so let's say you put in $20,000, 10% of that would be $2000, so 5% would be
$1000.
Wow.
So yeah .. 4% it's close - let's call it that - 4 or 5%.
You'd have to put in $20,000 for him, if he was making 4%, $20,000 would get you $1000
that month.
Basically that's it - it depends how much money you actually put in.
The more money you put in, the more you're going to get back.
The more money you put in, the more money you stand to risk as well.
The more you stand to lose, because if you have, you know $1000 in and he loses 10%,
you've lost $100, you know - $100 in and he loses 10%, you've lost $10.
Meh ... But that's why you try to find people who statistically actually know how to trade
and consistently make money.
Even if that amount of money's small, they consistently make money.
And when they come to lose money, they know how to stop it.
Not like me who's swinging all over the place, but they know how to stop it and control, and it's
called risk management.
It's incredibly important, you know.
So you want to find people who have good risk management - look, he's lost - Wesley's lost
in February - 0.92 - all the other months he's up.
You can be sure that that loss in February would have been much worse if it had been
like a noob trader...
See what's happened is Wesley's worked out how to set good stop losses, how to not use
too much leverage, how to not expose himself to too much risk...
I imagine - I don't know Wesley, if you see this.
But I'd imagine that's what's going here, so when his gains are good, he'll let his
gains go up and up and up, but his losses - he'll know how to cut them.
You want to watch for that...
But the amount of money you make, all those people who ask me, depends on copying the
right trader - a lot of these are very good, all those guys that I've shown you, they're
all really good traders...
But also, how much you have in your account for them to trade with, because in trading
your money is what makes more money.
That's your great asset.
It's not your time, when we're copytrading it's not even our experience, apart from maybe
copying the right person...
It's not, you know, the fruits of our labour, it's not something we build, something we
create...
It's simply our money - the more money you have, the more money you can potentially make.
So that's that...
Good question.
Everyone wants to know - passive income...
Hold on, because I've got to say this...
Just a quick thing - even when you think like that "How much money do I have to put in so
that he can make me my $1000 a month?"
Realistically, what you want to do is, because you very quickly work this out when you start
trading - that the more money you have, the more you'll make...
Any profits that you're making, you really want to leave them in there, and you've got
to kind of understand that idea - that you're going to want to leave those profits in there
so that your account grows, so that you can make even more money.
So really, in that calculation about 'How do I make $1000?"
Really, you want to be withdrawing - if you're going to withdraw something every month...
You want to be withdrawing a fraction of what you're actually making so that your account's growing...
Because as your account's growing, then greed can take over, but then, basically you can
put more money into your account and you can make more money.
So the most important thing in the beginning, unless you're, you know, Pete over there with
the billions or whatever, is to actually get your account to just keep growing, and copytrading
is great because as you make money in the copy, that money automatically stays in that
fund.
so you might start copying someone with $100 and they may keep making money, and that money
stays in the account, and then it just keeps adding on, so the trade size - it's like a
fund, you know, so that money gets ploughed back into the fund and the trades they're making
in your name are bigger and bigger and bigger and you can make accumulatively more money.
So you've got to think about that - you're not going to want to sort of just take $1000
out all the time because you're going to get this, work this out, real quick and say
"Hold on a minute, I need to start leaving these profits in there so that they can make even
more money for me."
So, yeah, I thought I'd come back and say that because it's really important...
O.K I was just editing that last video and I realised it kind of looked like I was saying
"Just put all your money in!...
What's the worst that could happen!"
And the truth is, you know, I wouldn't do that...
You know, I've been with Etoro for like 8 months, and do I trust them enough yet to
put just all my money in and ... No. No!
I'm not the most trusting of people.
So far it's gone well, so far, you know - but I've put in small amounts, you know...
Sort of $3000 - I trust that so far - I'm good.
And I believe that I can find people to copy who will make, you know, consistent money
- people like Jay, or whoever.
But would I put all of my life savings in Etoro?
No.
You know ... If I had 20,000 would I put it all in Etoro?
No...
No!
I wouldn't put all my money in any 1 thing.
So, I just wanted to say that because, you know, whilst it's true that the more money
you put in, the more money you make, you know - 5% on 100 and 5% on 20,000, you're going
to make more money on the 20,000, I still ... I still would be cautious, you know...
Until I know more.
I've been with them for what - 8 months?
So, I'm still getting used to it and sort of working my, feeling my way around...
I've got to find out more about the insurance, you know.
someone asked that question, which is a good question - "If Etoro fails - goes bankrupt,
how much of our money's protected?"
Apparently it's, they say 20,000 with Europe, 50,000 with the U.K...
But I'm checking into that still.
And why's it different between Europe and the U.K?
Because I'm with Europe, so ... we'll see, but yeah, I just wanted to say that...
I'll go swimming.