Stock Market - Yes or No ?

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    Stock Market - Yes or No ?

    I will post here but it may get moved - but at least it gets a bit of exposure to begin with lol

    I've used a platform called etoro for 2 or 3 years to hold shares in some cruise stocks (don't laugh) - mainly because we do 4 or 5 cruises a year and the shareholder benefits can be quite handy.

    Anyway, I was looking at their "copy trader" facility - where you invest as little as $200 to copy a certain persons trades - and there are some producing massive % gains.

    etoro show that their top 50 traders which people copy produced an 84% profit in 2020 - probably one of the worst years for shares ever.


    I'm thinking of $250 each on their top 20 performers (based on last 3 years activity) as a way of spreading the risk.

    Costs are very low too.


    So, would you do it? - it seems that the returns can be very attractive when compared to all the hassles we may now have with lettings.
    My views are my own - you may not agree with them. I tend say things as I see them and I don't do "political correctness". Just because we may not agree you can still buy me a pint lol

    #2
    I use etoro for trading crypto and US stocks. I don't use the copytrader because I would rather make my own choices but it does look like a good system.

    Comment


      #3
      Originally posted by landlord-man View Post
      etoro show that their top 50 traders which people copy produced an 84% profit in 2020
      If people had copied the top 10 shares trades in the FTSE 250 they would have produced over 140%+ profit in 2020
      -It's a self selecting statistic.

      Comment


        #4
        Sounds worth a punt for a monkey but as you say, best spread it amongst the top traders. My concern would be that the top traders might have just got lucky punting on single stocks and have no track record.
        "Past performance being no indicator of future success" !!

        Comment


          #5
          Sounds like you might end up l using quite a lot in costs if you are trading small values.

          I have an ISA in Hargreaves Lansdown & I pick my own Investment Trusts & Funds. I also did very nicely last year

          Comment


            #6
            Originally posted by boletus View Post

            If people had copied the top 10 shares trades in the FTSE 250 they would have produced over 140%+ profit in 2020
            -It's a self selecting statistic.
            Of course it's a self selecting stat - but it doesnt make it a wrong one.

            If the FTSE produced that return, perhaps we should all be asking why on earth are we dealing with the lettings market lol

            NB Decided to look at FTSE 250 for 2020 - a FALL in 2020 not a profit.




            My views are my own - you may not agree with them. I tend say things as I see them and I don't do "political correctness". Just because we may not agree you can still buy me a pint lol

            Comment


              #7
              Originally posted by Section20z View Post
              Sounds worth a punt for a monkey but as you say, best spread it amongst the top traders. My concern would be that the top traders might have just got lucky punting on single stocks and have no track record.
              "Past performance being no indicator of future success" !!
              Yes I'd be wary too - the software shows their profit/loss per month and per year for the number of years the user selects - it also shows all the investments (which tend to be quite a few to spread that risk).

              My views are my own - you may not agree with them. I tend say things as I see them and I don't do "political correctness". Just because we may not agree you can still buy me a pint lol

              Comment


                #8
                Originally posted by landlord-man View Post

                If the FTSE produced that return
                Top 10 FTSE 250 returns for 2020 here;

                https://www.ii.co.uk/analysis-commen...-2020-ii514582

                (ranging from 75% to 339%)

                https://www.nasdaq.com/articles/nasd...ain-2020-12-30

                The NASDAQ returned 43.2% in 2020

                Comment


                  #9
                  Originally posted by boletus View Post
                  It's a self selecting statistic.
                  Absolutely.

                  It's like saying that the most-copied gamblers at a bookmakers made an average of £250,000 each by betting on a couple of horse races. The reason that they were copied is that they were successful.

                  On aggregate, fund managers underperform the market. This is well established. I'm sure the same is true of traders on a given platform. In a particular year there will be some who make big profits and some who make big losses. You can be sure that the big winners of 2020 will not be big winners in 2021. Copying them is not a good idea.
                  There is a fine line between irony and stupidity. If I say something absurd please assume that I am being facetious.

                  Comment


                    #10
                    Originally posted by boletus View Post

                    Top 10 FTSE 250 returns for 2020 here;

                    https://www.ii.co.uk/analysis-commen...-2020-ii514582

                    (ranging from 75% to 339%)
                    The problem with quoting a "top 10" is that they only become the top 10 after the year has ended - and you have to have selected them at the start.

                    Incredibly, there isnt an easy to find "how did the FTSE 250 perform in 2020" result to be found - Ive found a few websites which ALL quote overall FTSE250 losses for 2020 but vary in that %

                    At least the copytrader option in etoro shows you their performance over a long period so you dont have to research lots of different shares but just the trader.

                    Still undecided though lol
                    My views are my own - you may not agree with them. I tend say things as I see them and I don't do "political correctness". Just because we may not agree you can still buy me a pint lol

                    Comment


                      #11
                      Originally posted by doobrey View Post

                      You can be sure that the big winners of 2020 will not be big winners in 2021. Copying them is not a good idea.
                      BUT if the winners were winners in 2017, 2018, 2019, 2020 and so far in 2021 it does suggest they have more of a clue than I do lol

                      My views are my own - you may not agree with them. I tend say things as I see them and I don't do "political correctness". Just because we may not agree you can still buy me a pint lol

                      Comment


                        #12
                        Yes, there are some who seem to have fairly consistent positive performance over a period of years. I would be skeptical, though. Could be explained by them having holdings in a few companies (e.g. Amazon) which have done very well over that time(?) I would suspect survivorship bias.

                        Can you test it out with a demo account?

                        https://www.brokerreviews.org/forex-...r-experiences/
                        There is a fine line between irony and stupidity. If I say something absurd please assume that I am being facetious.

                        Comment


                          #13
                          Yes, they have a demo account where you can play with £75,000 ($100,000)

                          I did put $10k into one copy on April 4th and its now on a profit of $4,915, so nearly 50% in just under 4 months.

                          I guess as Im only playing, I should "invest" all the funds and see how they go - obviously I will kick myself if they all increase 100% as it could have been MY money in there lol


                          PS I read your article and found it was written in 2012, so at least the platform and functions are still going strong lol
                          My views are my own - you may not agree with them. I tend say things as I see them and I don't do "political correctness". Just because we may not agree you can still buy me a pint lol

                          Comment


                            #14
                            Originally posted by boletus View Post

                            If people had copied the top 10 shares trades in the FTSE 250 they would have produced over 140%+ profit in 2020
                            -It's a self selecting statistic.
                            What do you mean by top 10 shares trades? If you mean the top capital gainers then you would have needed a crystal ball to predict those. Etoro list their most successful traders and you can copy their trades if you want. They're not successful because people copy them, people copy them because they are successful.

                            Comment


                              #15
                              Originally posted by landlord-man View Post
                              I will post here but it may get moved - but at least it gets a bit of exposure to begin with lol
                              Please don't deliberately post in the wrong forum, you just waste my time, views / responses vary little between the different forums.

                              Also, your link in post #1 was a clear breach of forum rules.
                              I also post as Mars_Mug when not moderating

                              Comment

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