Beginners' Guide to Investing

Introduction to Copy Trading

Is this guide for you?

If you like passive income, this guide is for you. More than two-thirds of people lose money on applications like eToro and this article shows you how to be a part of the successful minority via copy trading. Here are a few ground rules before we begin:

  1. Read all 5 sections of this guide (10-minute read) and follow them verbatim to effectively employ these investing concepts.
  2. Patience and self-control are key to the stock market. If you struggle with either of those, you might end up losing money.
  3. I would like to reiterate rule 2: There is no quick way to making money. 

However, here is a small chart on how much you can make in 10 years if you start with a thousand dollars and add 100 dollars every month (At an easy target of 30% in annual returns). This is the magic of compounding!

What is investing?

Investing is the art of making money grow. There are many ways to do so. You may invest in a company, earning annual returns as an investor in the company. However, that would mean all your eggs stay in one basket. You can invest in an ETF or a portfolio for maximum diversification. However, that takes away your control. You could combine both and use a trading application to manage your investments. That requires quite a bit of an effort from your side i.e., it is not passive anymore.

Why start with social investing?

Whatever form of investing you do, if you can make your money grow efficiently, that is all you need. An annual growth rate of 20-40% would give you the kind of accelerating curve you see above. The easiest way (in my humble opinion) is through social investing. You can see my relatively easy growth in investments on my eToro account. Click the button below to see the real-time stats!

Self-control: The Mantra

A Mantra is something you repeatedly tell yourself to get your mind to focus on the matter at hand. The mantra in investing is self-control.  There were a few times when I felt like I jumped the ship too soon however, I was lucky not to be adversely affected by the jumps as they were still calculated decisions. But the luck doesn’t last forever. Learn from the stupidities of the past to advance yourself.

When you see people making enormous double digit gains in a 1-month or 2-month period that is your ultimate test of patience and self-control. The moment you give in is the moment you lose the war. We are in this game for the long-term. Check out the next chapter on how to begin social investing on an application like eToro.