I have posted some articles about eToro social trading platform before. And in one of them I talked about compound interest and how can you turn 2000$ into one million dollars in 10 years. I have accepted this challenge and I will make monthly reports about my progress.
I will make public reports on my investments in the eToro social trading platform every month. You can read why I chose the eToro platform in the previous article – My experience with eToro social trading platform. You can also read how much did I earn with eToro in January 2021 in this article: eToro one Million challenge – 260$ profit on January 2021
February was my second full month on the eToro trading platform. I also described my investment strategy in one of the previous articles: One million euro from 2000 investment – how compound interest works. At the moment, I have successfully completed the second month of this one million challenge. In the first month my profit was $ 260 or 11.82%. This month, a small drop in profit – $ 155 or 5.47%, but I have also reached the target profit for the month which is 5%.
So my investment strategy is as follows – start-up capital of $ 2,000 and then make monthly contribution of $ 200. At the beginning of January, I topped my account to have 2200$ available to invest. I will make each subsequent deposit on the first day of each month. The total amount of my own investments per year will be $ 4400 in the first year and 2400$ in the following years. I have even created a spreadsheet with my eToro investment plan.
As of March 1st, I have made deposits of $ 2,600. The profit for two months is $ 416, which means I already have $ 3016 to invest in stocks and copy people for. 5% per month may not seem like much, but if you manage to get such a return on investment every month, then the annual profit is very pleasant! Continuing in this way, one could even hope to end the year with $ 10,000 in this investment account.
eToro is called a “social trading platform” because it makes it possible to copy other user portfolios – the money you invest will earn as much as a particular Copy Trader will earn from their investments.
In the month of February, I shared 4 people – one more than in January, because I thought that I would invest the February contribution in someone else’s portfolio, and it was a good decision. So the results of the people I copied in February:
Harry Stephen Harrison (-0.39%)
Hugo Angelo Lucien Manenti (3.52%)
Jeppe Kirk Bonde (4.15%)
Can Zhao (9.61%)
This month, my copied user portfolios were not as successful as last month, but I am not very disappointed because February was a very bad month for the stock market overall.
What happened in the stock market in February?
February was not so good as January! In fact, February was a very bad month, as a lot of stocks lost value by as much as 30% or even more. Therefore, I am glad that I was able to end this month with a profit at all.
Yes, when trading stocks, you will not always be looking at the numbers in green (profit). You will often also need to be able to bear with stocks that have lost value significantly since you bought them. So it has also happened to me, that majority of the shares in my portfolio have lost their value, as you can see, one as much as 40.90%.
But the stock markets have such a saying – Losers are only those who sell. And I’m not going to sell stocks while they’re down such much. I will sit and wait for them to regain their value and sell them at a profit.
If I am down on so many stocks, how do I earn?
Some of the stocks in my portfolio have great potential. In February a stock that is devoloping new COVID19 vaccine – OCGN, got up from 3$ per share to 18$! I bought this stock for $ 3.2 and it was worth as much as $ 18 one day in February. I sold a small portion of my investment in this stock and earned $ 100. And I’m pretty sure March’s earnings will also depend heavily on this stock. If it gets an FDA approval for its vaccine, its value could be as high as $ 30-50, which would mean a big profit for me.
It could be said that my investments are risky, but it seems to me that the funds available to me are not large enough to invest in stable stocks that provide a small return each year. That is why I am looking at stocks with high growth potential in the shortest possible time. It also doesn’t seem so risky to me, because the maximum loss is equal to the amount invested, but the profit can be as much as 10x or more. Of course, I try to predict or look for realistic forecasts for each stock myself, so sometimes they will be 100%, sometimes 300%.
Why not sell stock in down?
Look at any stock’s price chart – it will have ups and downs. No stock has ever reached its value without falling at some point. Large periods of growth are always followed by price consolidation or a free fall. And that’s perfectly normal! As an example we can look at the AAPL stock:
Most beginners are unlucky and buys stocks at the peak, when they are usually followed by a slight drop in price and the panic button is pressed. But if you look at the big picture, then such price fluctuations have always been in those graphs, however, good companies will always find ways to push the price of their shares higher.
What resources do I use to find out the news about the hottest stocks?
One of my favorite resources to find out what’s going on in the stock market is the social network for investors called Stocktwits. The main advantage of this portal is that each ticker has its own news feed, in which all users of this network can share their thoughts on stocks, cryptocurrencies and other assets.
Another very cool thing this network offers is tracking specific stocks. You can track these stocks and see the pre and post market price action for these stocks – see if the value of these stocks increases or decreases after the market closes. It is interesting to see what will happen to your stock portfolio before the market opens.
Also on the eToro platform, each user has the opportunity to start a discussion at any stocks new feed. It is interesting to compare people’s opinions on both websites.
I’m also watching a Youtube videos to learn useful lessons about specific stocks, the stock market in general and investing strategies. I also use Google if I can’t find the answer in one of the resources above.
What would I suggest to you if you decide to try your hand at the eToro trading platform?
I can offer you a € 50 bonus if you open an account using the link below and make a deposit of at least $200. I will transfer this bonus to your Paypal, Skrill or Revolut account. The eToro platform does not offer any bonuses to new customers. On the eToro platform, I would recommend you to try the Copy People feature as well as buying stocks yourself. The minimum amount of money you can copy for a person is $ 200, the minimum value for which you can buy a stock is $ 50, and cryptocurrencies can be purchased starting at $ 25.
I would suggest you try trading on the eToro platform, even with a free DEMO account, where you can risk-test all the features of this platform and decide whether you want to invest $ 200, $ 500 or $ 1,000.