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 previous months:
eToro one Million challenge – 260$ profit on January 2021
eToro one Million challenge – 155$ profit on February 2021
eToro one Million challenge – 21$ profit on March 2021
eToro one Million challenge – 210$ profit on April 2021
May was the first month on the eToro platform when I was not making profit. I ended the month with a $ 191.16 loss. These losses occurred because of closing positions that had been in my portfolio for a long time, but their value had fallen by 30-40%. I waited for several months for these positions to start improving, but I surrendered – instead I decided to close the positions at a loss and invest this money in assets with greater potential.
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.
At the moment, I’m a little off schedule because I’ve made deposits of $ 3,700, even though according to the plan i should have invested $ 3,200. I made these deposits because I noticed good opportunities to invest, but there were no extra funds available in the eToro account to invest. There are only $ 700 left and I will have deposited the $ 4,400 (which is the years target) into my investment account. Theoretically, the sooner I do it, the more I can earn. I hope this will be the case!
I have invested part of my funds in cryptocurrencies. I have slightly changed my crypto investment strategy and invested money in a total of 13 cryptocurrencies instead of larger sums in fewer coins. The total investment in cryptocurrencies is currently $ 1416. In my opinion, I am currently in a relatively good position with my cryto investments, as there was a fairly significant correction in the cryptocurrency market in May, during which many coins lost even half of their value. At the moment, the market is gradually going up again.
The real situation
The real situation is worse than last month. Despite making a $ 300 deposit, the value of my portfolio has dropped by $ 250.
There were a lot of unexpected events this month that affected my investment portfolio. At times my loss was as high as $ 1000 +, but for a moment I was in profit. Much of my success at the moment depends on the OCGN stock in which I have invested $ 2162.82. 60% of the value of my portfolio is invested in one company.
I am fully aware that it is not wise to invest such a large amount in one company and that the portfolio must be diversified. Despite everything, I believe that the share price of this company will rise sharply in the near future and my risk will pay off. A 100% return on this investment would provide almost 100% of the planned annual return on my investment portfolio. I have been following the news of this stock since January and bought first positions when the value of the stock was only $ 3.
To justify this disproportionately large investment in the OCGN stock, consider the following:
When you look at the value of shares in another company that makes COVID vaccines, you can see miraculous things! A great example is the Novavax (NVAX) stock, the value of which increased almost 70 times in 4 months – from $ 4 to 300 + $ !!! Take a look at the picture below and think about if you had invested $ 1,000 in the NVAX stock in February last year – now you would have $ 45,000, but at the high point even $ 79,000 (which is not shown in this chart, but is shown in the 6-month chart)
So my risk is $ 1150, but the potential profit is about 10-30 times! Given that, on average, if I bought $ 8 per share, if the OCGN price rose to $ 100, my 243 shares would already cost $ 24,300, which would be a 1250% return on investment. So I have high hopes for this stock and I am ready to lose all my investment.
Selling shares at a loss
The most painful thing to do in the stock markets is to close trades at a loss! I was very patient by not doing it earlier, but now that the cryptocurrency market is recovering from the recent crisis, I saw an opportunity to recover money much sooner than waiting for these stocks to return to previous highs.
In the picture below, you can see some of the shares I sold at a loss. There were more, and in general I closed deals where I had lost about $ 500-600.
My investments in Copy People
Right now, I’ve stopped copying all the people on the eToro platform because I’m investing that money in cryptocurrency markets. While cryptocurrencies are hot, I decided to take the risk and invest in them. To do that, I had to stop copying people where I had invested more than $ 1,000. At the moment, I think it’s pretty safe to bet that the value of cryptocurrencies will grow. The return on this investment is also many times higher, because my Copy People have been returning 2-5% profit per month so far, but you can expect up to 20% profit per day from the crypt (of course, also 20% loss).
More profit = more risk. But with my relatively small portfolio, I have to take more risks to see significant returns
In the image below, you can see my eToro account statistics for this year. In May, the value of my portfolio decreased by 14.25%!
I have been profitable for 3 of the 5 months this year. Although this chart does not reflect the current growth of the portfolio, but the performance of the portfolio in a particular month. For example, if your portfolio grows 100% for three months in a row, but you lose 100% of the value of your portfolio in the fourth month, this graph will show that you have earned 200%, when in fact your account would be $ 0. Therefore, I consider the account statement I published at the beginning of the article to be the main indicator of my trading success.
What happened in the stock and cryptocurrency markets in April?
The most significant event was the “small collapse” of the cryptocurrency market – many cryptocurrencies lost value by as much as 50 +%. Let’s look at the Bitcoin monthly schedule:
As you can see in the graph, the value of BTC fell from almost $ 60,000 to $ 32,000 during the month of May. With the fall in the value of BTC, other cryptocurrencies also fell and the total market value of crypts fell by almost 50%
The biggest culprit in this fall in the cryptocurrency market can be Elon Mask, the owner of Tesla, who said that Tesla will no longer accept Bitcoin as a method of payment, instead choosing other cryptocurrencies that are more environmentally friendly. Processing cryptocurrency transactions consumes huge amounts of electricity, especially a lot when processing BTC. Cryptocurrencies such as Cardano, DOGE, Litecoin are much more environmentally friendly, and require up to 100 times less resources to process transactions than Bitcoin.
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.