In some way it relates to eCommerce World as well – we buy stock for wholesale prices and sell for retail prices to make a profit. But Warren Buffett didn’t open a B&M shop or a fast food restaurant chain, no – he used money to invest in financial instruments, such as stocks and shares. I have always been interested in such financial markers, stock trading and generally, in “using money to make more money” concept. Years ago I was heavily involved in Betfair trading, which is actually quite similar to stock market day trading. But already back then I realized that day trading is not for me:
- It was a very boring way of spending your day, glued to PC;
- It was very stressful;
- Potential earnings were some way limited, at least for my trading techniques.
But still to this day, from time to time, I was looking for opportunities to invest money to make more money. With increased profits from my info products business and eCommerce stuff, I wanted to find a way I could invest my profits into some sort of financial instruments to let my money make more money, hands free way!
Problem is that with most traditional financial investment instruments, such as stocks, mutual funds, savings accounts etc. your potential ROI is very small. Risks vary from one instrument to other but in general, in my opinion, reward for taking those risks is way too small! Invest in dividend paying stocks for 5% yearly ROI? 5% per year? I would better use that money to buy a pallet of un-branded Tablets, made in China and sell off in 3 months time for 20-30% ROI on eBay. Yes, selling physical products involve way more work than financial investments but again, 5%-10% yearly returns doesn’t sound appealing to me either!
And then it happened – six months ago or so, when I was searching for some creative ways to invest money, I found a concept that totally blew my mind away! Same concept that few months later made me £1349 net profit in December 2011 alone!!! And today, I’ll share with you exactly how I did it…
Welcome to the World’s Largest Financial Marketplace – Currency Trading!
What is Currency Trading in first place? To put it simply, it’s the World’s largest financial Marketplace with estimated turnover of more than $4 trillion each day. Currency Trading (further in text simply “Online Trading”) is a market where anyone (individuals, banks, investment firms etc.), anywhere in the World can conduct foreign exchange transactions (hence sometimes it’s called “currency exchange”). Basically, it’s all about the PRICE for currencies being traded – will it go up or down (based on all kinds of political, economical, market etc. factors), much like with STOCK MARKETS. So you try to buy “low” and sell “high” to make profit.
What makes Online Trading so unique?
- Huge trading volume representing the largest asset class in the world leading to high liquidity;
- Geographical dispersion;
- Continuous operation: 24 hours a day except weekends, i.e. trading from 20:15 GMT on Sunday until 22:00 GMT Friday.
If you’re looking for more detailed explanation on what Online Trading is all about, please take a look at
Wikipedia page . It may take some time for you to fully grasp how it works, especially if you know nothing about stock markets etc. but essentially, it’s not that difficult concept to understand. When I try to explain to other people what Online Trading is all about, I just say that it’s very similar to buying and selling STOCKS, with the difference that with Online Trading you buy currencies and not stocks, bonds or other financial instruments.(which are also available as we’ll discover later on)
Another interesting nuance with Online Trading is that you’re actually buying/selling currency pairs and not individual currencies. Why’s that? Because it’s is a currency exchange marketplace and to buy one currency, actually means EXCHANGING it with another one. It looks something like this:
EUR/USD is the MOST popular currency exchange pair. But you can trade on more currency pairs plus most Online Trading platforms offer trading Gold, Silver & Oil as well as World’s leading stock exchange indexes, like SPX500, NSDQ100, DJ30, FTSE UK 100 and others.
For now, you just have to understand what Online Trading is and how you can make money from it. It’s simple, right? Buy “low” and sell “high” to make a guaranteed profit! Much like with stock markets, right? Then why 99% people lose money with this in long term? Why so many people are losing their life savings when stock markets collapse? Because the tricky part with Online Trading and stock markets is to know WHEN to get it and WHEN to get out. That’s the simplified key to success with financial trading – to know exactlyWHEN to buy and to know exactly WHEN to sell!
And this is where SKILLS & EXPERIENCE plays the biggest role. Currency prices, stock prices, oil/gold prices changes based on all kinds of factors, like political/economical situation, decisions, credit ratings, storms around the World, terror acts, inflation etc. etc. A Trader (person who trades) have to learn how all these factors affect currency exchange rates to predict when prices will go up or down, to make profitable trades. Now, these skills can’t be learned by reading few books or by watching some YouTube videos. You would have to spend years upon years on practising these skills and even then, there are no guarantees that you’ll succeed. Plus it’s a well known fact that it takes a lot of nerves and gray hair to become a TOP Trader – be it Currencies, Stock markets or Betfair – principles stay the same for all Marketplaces.
And this is where SKILLS & EXPERIENCE plays the biggest role. Currency prices, stock prices, oil/gold prices changes based on all kinds of factors, like political/economical situation, decisions, credit ratings, storms around the World, terror acts, inflation etc. etc. A Trader (person who trades) have to learn how all these factors affect currency exchange rates to predict when prices will go up or down, to make profitable trades. Now, these skills can’t be learned by reading few books or by watching some YouTube videos. You would have to spend years upon years on practising these skills and even then, there are no guarantees that you’ll succeed. Plus it’s a well known fact that it takes a lot of nerves and gray hair to become a TOP Trader – be it Currencies, Stock markets or Betfair – principles stay the same for all Marketplaces.
At this point you should say – so, what’s the point in doing all this? EXACTLY! Chances are very slim that you could become a professional Online Trader BUT here’s the good news – you DON’T HAVE TO!
The day when I found etoro really changed the way I look at Online Trading!
What’s eToro and what’s so special about it?
eToro is a social investment network. It acts as a middleman between traders by creating special online platform and software so that whole trading process is straightforward. These days, anyone, with as little as £100 can open an account and start trading on eToro. The currency buying/selling process is so simple and visually appealing that a child could perform a trade! Just take a look at
eToro’s screen shot below:
Why spend years on learning this stuff when you can simply copy what BEST OF THE BEST are doing?
Would you spend years trying to learn how programming works to create a shopping cart? Or simply buy Open Cart, 3D Cart or any other pre-made shopping cart systems? And eToro offers just that – opportunity to copy exact trades best traders are carrying out. And this is the core concept for my system:Copy Best Traders on eToro to Make Profit WITHOUT actually doing any trading on my part!
The idea has a very simple and straightforward reasoning – to follow absolutely BEST traders and earn money from their experience and trading skills. If these top traders couldn’t make me profit in long term, there’s no chance I could do it on my own, right? Exactly! So with this strategy, absolutely anyone, anywhere in the World, even without any experience with Currency Trading should be able to show a long term profit. Of course, there are some important questions that need to be addressed, like: which traders should I follow? How to minimize risks? How to manage investment portfolio? I’ll try to cover most important elements in this blog post to help you get up and running ASAP without wasting months learning how to best utilize eToro’s trading platform.
My System Explained
Currently, eToro allows us to copy up to five traders and I believe the best way is to maximize it to full potential and divide your money equally to 10 traders you’re following (10% goes to each bank). Obviously, the more diversified your portfolio is, the less chance of big loses when trader’s performance goes down. My general rule of thumb is to absolutely minimize potential loses, even if that means lower profit in long term. By this I mean – I only follow/copy traders with low to medium risk portfolios, with proven and positive record of at least 6 months. eToro makes this process extremely easy as you can analyse each trader’s trading style, past performance etc.
JOin etoro and you will see your greatest earnings: YOU SHOULD DEPOSIT SOME MONEY TO EARN HUGE MONEY . NO NEED TO BE AN EXPERT, JUST PUT YOUR MONEY IN SAFE WAYS
