Social trading networks are like the Facebook of the investing world. You can learn about new investments and strategies, connect with other like-minded traders, and get advice about when and where to trade. One of the drawbacks of following investment advice on the Internet is that you don’t know much about the people giving the advice and can’t see their track record. Social trading networks, however, provide you with information about a trader’s performance and risk so that you can better evaluate the advice. You should do some research to find traders who meet your risk and performance preferences, but here are a few top social traders that you should consider following.
Bernhard Rauch is a German trader on eToro. Bernhard’s portfolio is currently split at around 20% cryptocurrency and 80% currency.
As a result, he missed the 100-200% portfolio gains in 2017. His portfolio return was 21.44% in 2017 and 58.69% in 2016. On the other hand, he’s managed to earn a return of 9.72% so far in 2018, which is better than many traders holding cryptocurrencies can claim. Bernhard only trades around 1.92 times per week, and his average holding period is 1.5 weeks. He has 373 followers right now, but he’s worth following for how well he has done managing his portfolio after the decline in cryptocurrencies. He still has money invested in cryptocurrencies to be in the market when values rise. On the other hand, he’s reduced his risk by focusing on the more stable USD/NZD and USD/AUD markets.
Henri Gustave D Caron is a trader who has been active on eToro since 2016. Although he doesn’t have as long of a track record as some other traders in the network, his performance has been impressive.
His portfolio is up 12.8% so far this year after a 43% return in 2017. Henri is mostly invested in stocks, but he has 2% of his portfolio in cryptocurrency. He’s a relatively infrequent trader with just an average of 2.6 trades per week. Henri tends to hold positions for a medium-term of around four months. With a risk rating of about 3-4, Henri’s portfolio is a relatively low risk. Henri has 667 followers copying his trades right now, but that is sure to increase if he continues to grow a record of profitable trades. Follow Couguar if you want to trade stocks but don’t want to be placing trades every day and like a more extended holding period.
EurekaNZD is a currency trader on Zulutrade. Don’t let the name fool you because he trades more than just the NZD. He’s been active on Zulutrade for 157 weeks and has earned an ROI of 331% during that time. He trades an average of 7-8 times per week and places trades on the NZD, EUR, GBP, USD, CAD, JPY, and CHF. Although currently ranked #16 by Zulutrade, he has been ranked as high as #1 and in the top 5 for several weeks in 2018. If you are looking to follow someone with daily trades in a wide variety of currencies, 98% of EurekaNZD’s 1,164 trades have been profitable. That kind of success makes him worth following.
Investments Pro (Mindaugas Drezas) is a social trader on eToro who consistently earns a positive return with relatively low portfolio risk. He has earned 9.99% in the last 12 months and had 2,300 followers.
Drezas invests in a diversified portfolio that includes mostly stocks but also cryptocurrency, commodities, indices, and currencies. He trades an average of 5.8 times per week and holds a position for an average of 4 weeks. Over the past year, 84.33% of his trades were profitable. Although his portfolio has been down for four months so far this year, he only had four down months over the previous two years. So, you should watch and see what Drezas does over the next couple of months. If you are willing to trade as frequently as 1-2 times a day and want a lower-risk, diversified portfolio, he may have the strategy for you.
Libor Vasa is a social trader on eToro who has consistently good performance since joining the network four years ago. He currently has 3,679 people copying his trades, which is not surprising since he’s managed to earn 41.84% over the past 12 months.
He doesn’t make trades as frequently as others with an average of 1.16 trades per week. On the other hand, 87.5% of his trades in the past year were profitable. Although Libor Vasa mainly trades in stocks, his portfolio is considered to be relatively risky. His risk level over the past year varied between 3 and 5. If you are willing to accept a little higher risk and don’t want to make daily trades, follow LiborVasa for stock trading strategies.
Lena Virginia Birse is a trader from the UK known as Onegirl on eToro. She’s been active on the network since 2014 and currently has 1,476 people copying her trades.
Lena is 100% invested in stocks and trades an average of 6.42 times per week. She, however, does tend to hold positions for a long time. Her average holding period is 11 months. Even with a few rough months with losses in 2018, she still has a year-to-date return of over 24%. This is not too far off her 2017 annual return of 35.9%. Lena’s risk profile increased from 4 to 5 over the past few months, but she is still a solid trader to follow if you are looking for stock trades.
Signal Guide is a currency trader on Zulutrade. He’s been trading on the platform for 154 weeks and has 721 investors following him.
Although currently ranked as the #2 top trader on Zulutrade, he was recently ranked at the top of the Zulutrade rankings. It’s not surprising when you consider that his ROI since joining the platform is 222.12%. He’s made 858 winning trades during that time, which means that 98% of his trades have been profitable. Most of his trades are USD/CAD currency trades, but recently he has also been trading the USD against the GBP and NZD. Signal Guide keeps trades open for about four days and typically places several trades each day. If you are on Zulutrade and interested in an active currency trading account, Signal Guide has an outstanding record.
Past performance is not an indication of future results. This is not investment advice. Your capital is at risk.
When you find a social trader whose strategy interests you, follow them for a while and watch what they do. Make sure that you would be willing to make the same trades and accept their level of risk. You can also get an idea of how often you can expect to be making trades. Consider how many times per week they trade and how long they hold a position. If all of these factors align with your trading behavior and risk tolerance, you might be ready to start copying the trading strategy. Social trading networks like eToro let you automatically trade from within the platform. You can even select automatic trade copying so that every time the trader you follow buys or sells, your trade is automatically generated to copy the same buy or sell order. Many social trading platforms don’t have automatic copying of trades. Instead, you would need to enter the trade yourself through your brokerage account. This process creates more work for you but also allows time for the market to move. In the time that elapses, you could miss a trading opportunity or lose out on the potential profit you would have realized if your trade had been processed earlier. So, social trading is not only about picking the right traders to follow but also about choosing the right platform to capitalize on the social trading network technology fully.
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