Updated: June 28, 2023
There’s investing and there’s trading. Investing is a long-term or a buy-and-hold strategy. Meanwhile, trading is a short-term or a buy-and-sell strategy.
Investing is all about putting your money on a stock or an investment fund that has potential for growth over time. Meanwhile, trading is all about timing the market and earning from the price volatility of stocks or currencies.
Investing and trading each has its advantages and disadvantages. None is better, and I encourage people to do both if they can afford it.
When I say “doing both”, I meant having a portion of your money dedicated to investing, and the other portion allotted for trading.
In my stock portfolio, for example, 90% of my stocks are long-term investments. These are companies that I believe will just grow over time. That’s why most of these are blue-chip companies.
Meanwhile, 10% of my stocks are meant for short-term trading. These are often second-liners or speculative stocks, which are technically and fundamentally showing signs that their prices will go up very soon.
Another way to both invest and trade
A few years ago, I discovered another way that you can both invest and trade at the same time. And that’s through eToro’s CopyTrading feature.
Basically, you’ll choose among the professional traders in eToro and just copy their trades, which happens automatically once you set it up in your account.
Just like investing, I’ll choose a trader who has a good record and then passively copy them. Then just like trading, I’ll earn from the volatility of the market, thanks to the active trader who is doing all the hard work for me.
If you don’t have an eToro account yet, then you can open a virtual account here where you’ll get $100,000 that you can use for practice with zero risks.
Olivier Danvel: My favorite trader on eToro
Among them, one stands out and has become my favorite. And his name is Olivier Danvel. Why is he my favorite? Because he has consistently made money every month for me since I started copying him.
Olivier Danvel himself shares insight into his trading strategy on his bio. Having been trading for over 10 years now, he really is a seasoned trader. This is important because the experience is worth its weight in gold when it comes to trading.
While this is not the most deciding factor, I believe that an experienced trader can give you confidence because this means he’s been through a lot of losses and gains; and knows very well how to control their emotions.
However, what I do consider as key to success in trading, is money management skills. And Olivier Danvel certainly has this.
I’ve seen how he avoids exposing too much of his portfolio on open positions, and thus, not risking too much of his money. What this means for me as someone who is copying him is that a good chunk of my money is also not exposed to too much risk as well.
He also says that he is not a daytrader. He opens a few trades each month and waits for the best price to enter the market. Maintaining a low-risk score, Olivier aims to make a 1% monthly return as he believes in small but consistent returns.
Below is his superb trading performance. He is indeed an elite trader.
A low-risk investment with high potential returns
As you can see, his results are really impressive. What I really like about his trading style is that he seems to show a lot of conviction with his trades.
His wins are often pretty big, and he knows the right time to cut the losing trades so they don’t affect his performance too much. This is a sign of a good trader.
The average trade length is 4.5 days. This means you’re not going to have to worry about your funds being locked up in trades for months on end.
Furthermore, he only has a risk score of 1-2. This essentially means he is conservative in choosing trade sizes, leverage, and securities.
He primarily trades currencies, as you can see below. But he also trades commodities and a bit of cryptocurrency. As of writing, he has more than 8,000 people copying him, which amounts to more than $5 million.
I’ve been copying Olivier Danvel since early last year, and my money has passively grown by more than 20% already. Go and view his profile here to check his current earnings.
You can also do passive investing in US stocks, forex, cryptocurrencies, ETFs, and global markets. Simply open an account with eToro and copy professional traders just like Olivier Danvel.
Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.