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Why Your Return In eToro Is Not The Same As The Person You Are Copying

Some of you may have been asking, why is it that your return is not the same as the person you are copying. In an ideal world whatever returns the person you are copying should be exactly the same as yours. This is because eToro copy trading does not charge any fund management fee to the person who is copying. Whatever charges apply to the person you are copying is the same even for the person who is copying. However, we live in an imperfect world and this is not always usually the case.

Generally there are three major reasons why you do not have the same return as the person you are copying:

First, that you did not start copying the person at the beginning of the month. For example the monthly return of the person you are copying is 3% for that month. This is computed as from the first day of the month to the last day of the month. If you did not copy at the beginning of the month, then do not expect to have the same return of 3% with the person you are copying.

Of course, it is not possible to copy the person you are copying at the beginning of every month. Sometimes, you copy in the middle of the month when you have money available to invest or when you feel that it is a good time already to copy. (For reference, I made another on when is the best time to copy. Please check it out.)

Second reason why you don’t have the same returns is because the person you are copying may have added funds but you did not add funds. This is called as “copiers that are out of sync”.

Although, eToro sends you a notification through the mobile app that the person you are copying has added funds it is not always automatic. Sometimes, you are either busy or sometimes you do not have the funds yet to add money in eToro. But don’t be so concerned about it. Although you are out of sync with the person you are copying, you are only missing out on the new stocks that he is buying but you will still get returns on the existing stocks you are currently holding/have already bought in the past. It does not automatically mean that if you did not copy the new stocks bought by mjtfernandez it will automatically mean that you will earn less. It is possible that the new stocks purchased did not grow at all or worse it made a negative return.

Third reason why is when you added funds to mjtfernandez without COPYING OPEN TRADES and the person you are copying (mjtfernandez) did not add funds. If this happens, you might have added a lot of funds which increases your available cash balance. For example the person you are copying has 95% invested in stocks and 5% in cash which is also the same as yours in the past. If you copied all his OPEN TRADES in the past, you are also invested 95% and 5% in cash. However, you had some extra money to invest and you copied mjtfernandez again but this time you DID NOT COPY OPEN TRADES. This will increase your cash position to for example, 15% cash and 85% investment.

If you have so many cash and very little amount invested compared to the person you are copying, your returns will not be the same as the person you are copying because holding a lot of cash means that it will not be invested and thus will not make money for you. This is why most copy traders always RECOMMEND TO COPY OPEN TRADES.

The best way, is to wait for the cash that you have invested to be used up before not copying open trades again. Or copy open trades on your future investments with mjtfernandez. However, if you feel you just have too much cash already vs amount invested even if you already waited for weeks for the excess cash to be used for copying by mjtfernandez, you now need to RESYCHRONIZE WITH MJTFERNANDEZ.

To resynchronise there are two ways:
1. You can remove all the uninvested cash that you placed to mjtfernandez by clicking “Remove Funds”. This will remove all the cash that was not invested to buy stocks.

2. Or you can press “Stop Copying” so that all the stocks that you copied will be sold. This will take at least 2 working days for all the stocks to be fully sold. This is because the Asian markets open in the morning, the European markets open in the afternoon and US markets open at night. Once all the stocks have been sold, you can copy again mjtfernandez as if you are copying for the first time so that the entire funds you are using to copy will be invested again on all OPEN TRADES of mjtfernandez which will FULLY SYNC you with mjtfernandez again.

Suggested Links:

Copy Trade mjtfernandez Dividend Stock Portfolio in eToro

Who is Mark Fernandez?

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