There’s so much content on investing out there that you can get lost very easily. The internet is full of YouTubers, Bloggers, and Instagrammers teaching you their thing. They’re often called Finfluencers. I have a special mistrust of crypto millionaires who got lucky and now sell their “knowledge”, promising you can “get rich quick”, too.

Please be careful before you join any investing schemes or other scams that look too good to be true.

You can get rich fast, but you’ll probably get poorer faster.

You don’t need fancy Instagram pictures with expensive cars. Real wealth doesn’t come from showing off. You need to learn the principles of finance!

Here is the first lesson for you, before you even start reading:

If anyone sells you a “guaranteed” +15% or more annual performance, run away! You’re being fooled.

That’s why I decided to write a book for you. I want you to avoid these frauds and learn how money really works, so you can tilt the system in your favor and solve your money problems.

I believe everything in the book should be taught in schools, but unfortunately, it is not. That’s why you’ll get it for free. I want to share with you the knowledge I wish I’d had a long time ago.

My goal is to make you better at the money game — and to help you build real financial stability.

I grew up in a family that respected money — not just the money itself, but the hours of life traded to earn it. I learned frugality, but also equilibrium, because money is more than only numbers.

What is the point of having money if you never spend it and don’t enjoy life? Refusing to buy an ice cream, a coffee, or an apple juice just for saving a buck is not the right way to live your life. The numbers in your account won’t make you happy by themselves.

On the other hand, you won’t be happier either if you eat 3 kinds of cakes instead of bread or wear designer clothes. Buying like this often leaves you feeling guilty and regretful.

Don’t get me wrong, I like shiny things. I love new gadgets, and I often get almost persuaded by salesmen who show me the benefits of the junk they are selling. Sometimes, “I feel” I need to buy something.

For example, even right now, while writing this, I subconsciously look for reasons to buy a new laptop…an unnecessary upgrade…using my credit card…

Yes, I can also be an impatient and emotional consumer. But I learned the right balance at a small age. There are some simple principles I use to guide myself for efficient spending. I will share them with you in that book.

Spoiler: Using a credit card can be a wonderful thing.

But money management is not only about limiting your spending. Before spending, you have to earn.

Earning money is not limited to a job. And this is also something I learned when I was a child, as my parents transitioned from employees to entrepreneurs.

Later, while growing up, I learned that your earnings are not necessarily tied to your time. You also have to break that belief. There are multiple ways to earn, some that can change your life faster than you think, and I will show you my favorites. In fact, there is a whole mind shift about earning, and I wish more people understood it.

But how about “letting your money work for you” and “making money while you sleep”? Here is where investing comes into play. I learned the basics of investing as a teen, but it was only in my late 20s when I really acknowledged and experienced how wide this term is.

Indeed, investing is a concept worth exploring, and it can be very different depending on how you approach it. Although I have my own investment strategy, I will show you multiple options so that you can find your own way.

At this point, you might have figured out that you will learn in this book how to identify your emotions, balance your spending, arrange your earnings, and manage your investing. That way, you can take control of your financial life.

The only question left is how to put them all together. Here is where budgeting comes into play.

Contrary to what you are used to, when I say budgeting, I don’t mean spending hours every week to introduce all of your bills into a spreadsheet. That is exhausting. And that is often a loss of time also.

When I say budgeting, I like to focus on what’s coming next month, because planning forward is what really sets you up for the future.

That is what I am going to teach you in my book. And your have just read its introduction.

So, if you ever wonder why you work hard but feel trapped and stuck, let’s take the next step together.

Preorder now and get an instant Sneak Peak:

Your Money Can Work for You -Get a Sneak Peek Now

At the end of the day, money is not about greed or fear — it’s about freedom. The freedom to make choices without pressure, to protect the people you love, and to live life on your own terms. That’s the real money game. And the sooner you learn the rules, the sooner you can start winning.

More articles will follow.

To your success,

Alex Artenie

CISI Certified Popular Investor

The Money Game And Building Your Financial Life was originally published in ILLUMINATION on Medium, where people are continuing the conversation by highlighting and responding to this story.

You find a Popular Investor with some track record.
The returns look amazing. The risk score is low. Followers are raving.
So you click “Copy.”

And then… the market drops.
Your portfolio bleeds red.
You’re left staring at your screen wondering — did I just make a huge mistake?

Meanwhile, the long-time copiers of that same investor are still in profit. Relaxed. Confident.
Why?
Because you copied at the wrong time — and they didn’t.

It feels unfair. You did everything right… but somehow ended up on the wrong side of the trade.

Wait — weren’t we told not to time the market?
Yes. But here’s the twist: CopyTrading has its own kind of timing — and most people get it wrong.

In this article, you’ll learn how to pick the right moment to copy — without ever trying to time the market.

It sounds like a contradiction, but it’s not.

Let’s dive in and fix this once and for all.

Lose Less than Mr. Market

If market drops make you anxious, here’s the real secret:
You don’t need to avoid losses — you just need to lose less than the market.

That’s your edge.

It is like having a seatbelt in a crash — it won’t stop the hit, but it’ll save you from serious damage.

While the idea of holding assets that don’t fall in downturns sounds great in theory, it’s incredibly rare in practice. And when it does happen, it’s often at the cost of weak returns in bull markets.

So let’s be clear: Consistently gaining during bear markets? Unrealistic.
But minimizing losses? Totally achievable — and that’s where your focus should be.

On eToro, you can spot this quickly. Just check a Popular Investor’s drawdown stats on their profile. Lower drawdown means less pain during corrections.

Want a deeper look? Tools like Bullaware let you compare a PI’s drawdowns against the S&P 500.

Take the example below, where the PI loses less than the index — even in sharp downturns. That’s a powerful signal.

Limiting drawdown is how you beat the market over time, without trying to time it.

Defense keeps you in the game. But now let’s talk about how to win it.

Profit from the Corrections

Still worried about copying at the wrong time?
Here’s a strategy that flips that fear into opportunity: wait for the drop.

Contrary to popular belief, the best time to invest isn’t when things feel safe — it’s right after a correction.

Take a look at the chart above. After major downturns (those red bars), the market often rebounds with green bars far above the average 10% return. That’s not luck. That’s discounted entry at work.

The same principle applies to CopyTrading.

If you’ve got a Popular Investor on your watchlist with a solid track record and limited drawdowns — but you’re unsure when to start — a market dip is your green light.

Copying after a correction lets you ride the recovery instead of absorbing the decline.

😬 What If You Already Copied Before the Drop?

First off — don’t panic. Timing mishaps happen. What matters is how you respond.

Here’s your playbook:

1. Breathe.
   Emotional decisions are the enemy. Stay rational.
2. Reassess Your PI.
   Are you copying someone with a long-term strategy and a history of recovery?
   Is the drawdown aligned with a broader market correction — not a single poor trade?
   If yes, stay the course.
3. Double Down Strategically.
   Adding funds during the dip accelerates your break-even point. Here’s how the math works:

You invest $500. The market drops 10%, and your portfolio falls to $450. You add another $500 while the market’s down — now you’re in for $950.

When the market recovers just halfway (5.3%), your total portfolio reaches $1,000. You’ve broken even — even though the market hasn’t fully bounced back yet.

Now, when the market fully recovers, your second investment — made at a discount — outperforms.

The Big Insight

When the market drops, don’t retreat — lean in.

Add capital to the right Popular Investors. Because recovery doesn’t just heal your losses — it compounds your future gains.

But of course, this only works if you’re copying the right people…

Recovery-Friendly PIs

“Past performance is not indicative of future results.”

You’ve probably seen that disclaimer everywhere. And while it’s technically true, it doesn’t mean past performance is useless.

Let’s be honest — if you had to choose between:

• A PI who’s crushing it this year but only started in January and shows wild fluctuations
  or
• A PI with 5+ years of steady performance, consistently recovering from downturns and outperforming the market year after year…

The choice is obvious.

If you’re here for short-term thrills, this article probably isn’t for you. But if you’re here to build sustainable wealth, keep reading.

How to Spot a Recovery-Friendly PI

Assuming you’ve already filtered for low drawdowns, here’s what separates a good PI from a great one:

1. Look for Consistent Recovery Patterns
   Red months aren’t a problem — they’re inevitable. But what matters is why they happen.
   A reliable PI’s drawdowns should correlate with broader market conditions — not random trades or risky bets. Predictable losses aren’t just tolerable — they’re a sign of strategic discipline.

2. Year-End Performance Matters
Even with downturns, great PIs tend to close the year strong — ideally matching or beating the S&P 500.
If they consistently fall short, you may be paying for stability at the cost of returns.

And that’s okay — as long as you know what you’re signing up for.

📚 Bonus Resources for Smarter Copying

Want to dive deeper into evaluating traders? Check out my must-read guide:

5 Reasons You Fail As A Copier on eToro and How to Overcome That

Feeling a bit overwhelmed? Don’t worry — we’ll simplify it even more in the next section. Let’s turn this into a clear, simple checklist you can act on.

Selecting PIs without making it a second job

Doing your due diligence is important — but let’s be honest: You didn’t join eToro to spend every evening buried in charts and spreadsheets.

That’s exactly why I’ve simplified everything we’ve discussed into a practical 5-step checklist. Use this, and you can start confidently without wasting time or overthinking.

🧭 The 5-Step CopyTrading Shortcut:

1. Choose a PI with at least 3 years of track record — ideally 5+. Longevity matters more than hype.
2. Check that their drawdowns are smaller than the S&P 500. This tells you how well they protect capital.
3. Verify they consistently recover and at least match market returns over time. Not every month needs to be green, but every year should make sense.
4. Start by investing only half of what you plan to allocate. This keeps you calm if the market dips early.
5. At the first significant drawdown, invest the other half. That’s your chance to buy in at a discount and accelerate recovery.

These steps give you the confidence to act without analysis paralysis. You’ll limit your downside, set yourself up for a faster recovery — and most importantly, you won’t spend hours stuck in research mode.

Now that we’ve broken it down step-by-step, let me show you exactly how I apply these principles as a Popular Investor.

My Proven Approach to Limit Drawdowns

Let me make this real for you by first showing what not to do. Imagine someone diversifying Ford stock by adding GM.

Sounds like diversification, right?

Not really. Ford and GM are highly correlated — they move together. So when one drops, the other usually drops too.

Below is a chart I compiled using PortfolioVisualizer, showing monthly returns of portfolios holding Ford, GM, or both in a 50/50 mix:

More often than not, a red month for one is a red month for both. That’s not real diversification. It’s just doubling down on the same risk.

Real Diversification = Uncorrelated Strength

The takeaway?

True drawdown control comes from combining uncorrelated assets. And that’s exactly what I’ve built into my Popular Investor strategy.

My strategy combines high-growth tech for performance and gold for protection — creating a resilient core that thrives across market cycles.

This smart asset pairing minimizes volatility without capping long-term growth. It’s a strategy designed not just to perform — but to recover fast and protect capital during rough markets.

Want to see the full strategy? I explain the entire approach here:

How to Effortlessly Outperform the S&P 500: Proven Strategy With My eToro Profile

Ready to see it in action? It’s already working for my copiers — see the strategy in action on my eToro profile.

🔚 Closing Thoughts & Next Steps

The difference between CopyTrading that works and CopyTrading that disappoints often comes down to the things we covered here — timing, drawdowns, diversification, and consistency.

If you’ve made it this far, you’re already ahead of 90% of investors who blindly copy without a strategy. My goal is to help you become part of the successful minority that grows wealth steadily — without stress, without gambling, and without turning investing into a second job.

📬 Make sure to follow this publication and subscribe by email to get future strategy breakdowns, mindset shifts, and tactical guides — designed to help you CopyTrade with clarity and confidence.

Got questions? Drop them in the comments — I read every one.

To your success,

Alex

⚠️ Disclaimer:

This article is for educational and informational purposes only and does not constitute financial, investment, or trading advice. The past performance of any Popular Investor or financial instrument mentioned does not guarantee future results. Investing involves risk, including the possible loss of capital. Always conduct your own due diligence or consult with a licensed financial advisor before making investment decisions. The author may hold positions in assets or strategies discussed.

Stop Losing Money by Copying at the Wrong Time was originally published in Master eToro Copy Trading on Medium, where people are continuing the conversation by highlighting and responding to this story.

Copy trading on eToro can be a game-changer — if done right. It allows you to leverage the expertise of top investors without actively managing your portfolio. But while the feature is simple, many beginners make costly mistakes that hurt their returns.

Some of these mistakes I made myself years ago when I was copying other Popular Investors. I wish I knew these things back then.

Let me show you what to be aware of and help you learn from my mistakes.

1. Lack of Research on the Popular Investor

Want to avoid costly mistakes in copy trading? It all starts with choosing the right Popular Investor. You cannot simply start copying the first Popular Investor showcasing his performance on the feed.

Dedicate at least 15 minutes to studying every promising candidate.

Please read the PI's bio and their pinned posts. Don’t be lazy! It’s your money, after all!

Here are the major things you have to look at:

Performance History

Long-term consistency matters more than short-term gains. Check how they handle different market conditions.

Ideally, a Popular Investor should have at least 5 years on eToro so that you can have more statistical representativeness. Of course, it is very likely that many investors had red months or years. That is totally normal, as the market itself experiences downturns.

Understand that a portfolio that is always on green would most probably underperform in the long run due to missed opportunities.

For reference, here’s how my own portfolio performed over the past 5+ years, balancing growth and risk effectively.

Ideally, I would recommend copying someone who started on the platform before 2020 so that he had the whole bucket.

Now that we talked about the past performance and track record, let’s see how risky it was to get there.

The next point to research is what the PI invests in.

Portfolio Composition

Review the types of assets the investor trades — stocks, cryptocurrencies, ETFs, or commodities.

eToro provides the Breakdown bar, which shows the asset classes the investor invests in, as shown below.

However, it does not give sufficient insight, in my opinion, because simply showing ETF or Stocks does not fully answer the questions: What kind of ETF? What kind of stocks?

So it is good to skim through the PI’s portfolio and assess whether you are comfortable with his holdings. For example, if you might not believe in crypto, then check if your candidate PI is exposed to them or not.

Assets Under Copy (AUM)

A higher number of copiers and significant copy assets under management indicate a higher level of trust and credibility. This reflects investor confidence and satisfaction with the trader’s strategy and performance.

As you probably know, the Popular Investor level is directly linked to their AUC. So, the higher the level, the better you can assume the investor is. After all, there wouldn’t be that many copiers summing to a significant AUC if he was not performing well.

Below is the minimum AUC for each level. You can recognize the level by the star color next to the PI picture: blue — Cadet, Red — Champion, Green — Elite, and Black — Elite pro.

Monitoring investor levels offers two key insights:

• You see their minimum equity: This is the money that the investor has invested himself. So you understand if he is really taking the game seriously or just playing with some pocket money.
• You now know about their education: There are educational requirements for Elite and Elite Pro levels from a very reputable source (CISI Institute). If they achieved those levels, you can be sure they know what they are doing. I know that because I enrolled myself in the exam for qualification, and it will take me months of extensive preparation.

Communication and Transparency

Check if the trader regularly communicates through updates, insights, and explanations about their trading decisions. Transparency and clear communication help you better understand their trading philosophy and strategy.

The PI shall at least post a monthly update, but weekly updates are even better. This shows they are actively engaging with their community and are open to communication. If they also post educational material, stocks, and market analyses, even better. That is how you know they are truly interested in improving the quality of the investment network.

Needless to say, you should also evaluate the quality of the posts, i.e., filter out dumb “to the moon posts, and so on.

Give extra credit to PIs who disclose their portfolio size or Club Tier. That is a sign of transparency, and you will know the PI has its own skin in the game (or not).

We talked a while about them, but it is also worth talking about you.

Alignment with Your Investment Goals

Ensure the trader’s overall strategy aligns with your financial goals, risk tolerance, and investment timeframe. Copy traders whose objectives closely match your own for optimal results.

To do that, you first need to understand your own investment goals and risk tolerance.

• Are you a tech enthusiast looking for skyrocket growth?
• Are you more into stability and income generation?
• Will you need your money in 1 month, 1 year, or 10 years?

Answering this kind of question will surely help you identify the perfect match for you.

The closer the PI’s investing goals are to your own goals, the higher the chances of a successful copy synergy.

You’ve learned how to research a PI, but even the best traders can’t help you if you fall into these common mistakes. Let’s look at what else could go wrong.

2. Impatience with Market Fluctuations

Copying an investor may involve periods of market volatility. If you’re not prepared for short-term drops or are impatient with slower growth, you might panic and exit the copy, causing you to miss out on future gains.

Here’s what usually happens:

• You see a PI performing really well and start copying them at their peak.
• A correction happens, and suddenly, you’re in the red.
• You panic, assume the PI isn’t good, and stop copying.
• You move to another PI… right at their peak.
• The cycle repeats, and you end up constantly chasing returns instead of building wealth.

In order to be successful at copy trading, you need to carefully choose your PI, then let him do his job and be patient.

Most PIs tell you exactly how to copy them effectively. They know their strategy best, including how long you need to copy to see results.

If patience isn’t your strong suit, here’s a better approach:

• Allocate money to a PI and commit to copying them for the recommended timeframe.
• Instead of panic-selling, diversify by researching and copying multiple PIs over time.
• This way, you spread your risk and avoid emotional trading mistakes.

This brings us to another critical mistake.

3. Overlooking Diversification

Would you invest all your money in a single stock? Then why put everything into just one PI?

Relying solely on one investor to manage your portfolio can lead to a lack of diversification. If that trader’s strategy falters, you risk significant losses. It’s important to spread your investments across multiple traders and assets to minimize risk.

eToro’s ‘Copy Trader’ section provides powerful screening tools, filters, and categories to help you find the right mix of investors.

Even at the first glance, you can see:

• Trending Investors
• Filter with one click for Most Copied, Highest Gainers, Most Consistent, or Lower Risk Investors
• Market Outperformers
• Focused on ETFs
• Long-track Record
• Diamonds in the Rough

By copying multiple PIs, you will spread the risk. That is a very similar concept to diversifying in multiple stocks or asset classes.

Diversification helps protect your investments — but risk management doesn’t stop there. Let’s dive into the next mistake.

4. Not Matching Risk Tolerance

Copying a high-risk trader when you’re risk-averse? That’s a recipe for stress, panic selling, and bad decisions.

Every investor has their own risk tolerance. If you copy someone who takes higher risks than you’re comfortable with, it could lead to emotional reactions or hasty decisions. Always align the trader’s risk level with your own risk tolerance.

Here are my three favourite ways to assess the risk:

Risk Score

Every trader on eToro is assigned a risk score from 1 (low risk) to 10 (high risk). Lower scores generally indicate cautious trading and better risk management. Consider how comfortable you are with the trader’s risk level before deciding to copy them.

A risk score of 4 is common and comfortable for most people. You can find PIs with even lower risk, but be aware that lower risk often comes at the cost of lower returns.

On the other hand, it is totally ok that you copy someone with a risk score higher than 4, but in that case, I recommend you look at what excess return you get for the extra risk.

Here is how a typical risk rating looks like:

Risk Contribution

It’s useful to analyze which assets contribute most to the portfolio’s risk. This may take some extra time, but it helps you make smarter decisions. Let me show you why.

Look at the example below:

In this case, you can spot a significant risk contribution of the $QQQ ETF.

But does that mean that the portfolio is not diversified?

Not at all. $QQQ is an ETF that tracks the Nasdaq100 index, therefore, it is inherently diversified. So that is totally ok.

Instead, if you have found only one particular stock with that risk contribution, that would be a big worry sign.

Drawdowns

Drawdowns show you how much you can expect your portfolio to fall in case of unexpected downturns. This is the indicator that will test your patience and panic immunity the most.

Analyze the trader’s historical maximum drawdowns (peak-to-trough declines) to understand their risk exposure and ability to recover after losses. Lower drawdowns typically signify better resilience and prudent risk management.

eToro gives you the maximum daily, weekly, and yearly drawdowns.

Understanding drawdowns prepares you for inevitable market fluctuations — so you don’t panic when volatility hits.

5. Failure to Adjust the Copy Portfolio

While CopyTrading is a form of passive investing, it cannot always be a ‘set and forget’ strategy. Markets shift. Traders adapt. If you don’t keep up, your portfolio could suffer.

Blindly copying a PI without periodically reassessing their performance and approach can lead to suboptimal results. Just because a trader performed well in the past doesn’t mean they will continue to do so under different market conditions.

If you don’t periodically review and adjust your copied portfolio, you may:

🚩 Miss Out on Better Opportunities — Some traders adapt faster to market shifts than others.
🚩 Hold Onto Underperforming Strategies — A trader who thrived in a bull market may struggle in a downturn.
🚩 Ignore Risk Shifts — PIs may gradually take on higher risk, exposing you to unnecessary volatility.

In order to be up to date with your PI’s strategy, behavior, and performance, I recommend the following:

📌 Read Their Updates & Reports — This is where PIs disclose shifts in their strategy. If they stop updating, that’s a red flag.

• 📌 Watch Copier Trends — A sudden drop in copiers could indicate performance issues. A spike in copiers may signal hype — but is it justified?

📌 Compare PI Performance to the Market — A red month during a market crash is normal. But if the market is green while your PI is consistently underperforming, that’s a warning sign.

You can easily see that by looking at the chart on your PI’s page. You will have a comparison to the S&P500 index. You can put the cursor on any place, and in the top left corner, you will see how your PI performed on that day vs the broad index.

Closing thoughts on how to be a good Copy Trader

Becoming a successful Copy Trader is a learning process, and I hope this article gives you the insights you need to improve your strategy. I’ve made some of these mistakes myself in the past and learned the hard way. If this article helps you avoid them, then it has served its purpose.

If you found this article useful, follow my publication for more insights on Copy Trading and smart investing strategies.

Happy Investing Journey,

Alex

Disclaimer: The content provided is for educational and informational purposes only and should not be considered financial advice. Any investment decisions based on this information are made solely at your own risk. We do not provide personalized investment advice, recommendations, or endorsements of any specific investments, products, services, or strategies. You should consult a licensed financial advisor before making any investment decisions. All investments carry risks, including potential loss of capital. Past performance does not guarantee future results. Market conditions and financial strategies can change, and there is no assurance that any approach discussed will be successful. The views expressed are those of the individual author and do not necessarily reflect the opinions of this platform. This content does not constitute an offer, solicitation, or recommendation to buy or sell any securities or financial instruments. By engaging with this content, you acknowledge and agree to these terms.

5 Reasons You Fail As A Copier on eToro and How to Overcome That was originally published in Master eToro Copy Trading on Medium, where people are continuing the conversation by highlighting and responding to this story.

The debate on “beating the market” has raged on for years, and it will likely continue as long as capitalism does. But here’s the thing: when it comes to the S&P 500, outperforming the market isn’t as difficult as many think.

Let me show you how.

Outperforming The S&P 500

To make this effortless, we need to embrace passive investing. That means not buying and selling stocks daily or weekly. Even better, we focus on assets that will naturally outperform in the long run with no extra effort on our part.

Does it sound too good to be true? It’s not — this is real.

I’m talking about the Nasdaq100 index. Take a look at the chart below, created using TradingView, which compares the performance of the Nasdaq100 and the S&P 500 since 1985 — the year the Nasdaq100 index was launched.

As you can see, the outperformance of the Nasdaq is astounding. This is not a get-rich-quick scheme — this is about a proven long-term performance and steady growth.

So, what’s the secret? Simply invest in a Nasdaq100 tracking ETF like $QQQ, and you’ll likely outperform the S&P 500 with ease.

Nifty Note: An ETF, or Exchange-Traded Fund, is a type of investment fund traded on stock exchanges, much like stocks. It holds a collection of assets (such as stocks or bonds) and allows investors to buy shares of the fund. If you’re curious about how ETFs can help you build a stronger portfolio, you can dive deeper into this topic in my guide here:

Which Asset Class is Right for You?

Now what? Is that all? Is this the final answer?

Of course not. Before you start investing, here’s something you need to know…

The Drawback of Holding Solely on Tech

Take a closer look at the Nasdaq chart. You can easily spot at least two cases when it dropped massively. Far more than the S&P 500. The first drop was in 2000–2001 (DotCom bubble, -81% vs -45%), and the second is in 2022 (Tech Stock Crash, -33% vs -24%).

How would you feel if your portfolio experienced such a drastic loss?

While some might think balancing the two indexes reduces risk, this strategy still leaves you exposed to sharp losses during downturns.

What’s the better solution to avoid these volatile roller coasters and smooth out your returns?

A much smarter choice would be to invest in an asset that moves independently of the tech index, i.e., the two are not correlated.

An asset that operates independently of market volatility could be a game changer for your portfolio.

Now, let’s look for that better option.

The Golden Asset Against Market Crashes

As you could expect, the golden asset is GOLD itself. :)

Gold has significantly underperformed in both indexes since 1985, growing at an average rate of only about 5% annually, but the thing is, it has followed its own path, not bound to the stock market swings.

Let’s add it to the chart for illustration.

The relative movement of Gold is insignificant compared to Nasdaq100 that you cannot even properly evaluate it on the picture. I zoomed in and extracted the relevant data for you.

So, when the two indexes dropped in 2000–2001, Gold grew by 17%. When tech dropped in 2022, Gold held steady.

I think you see the point now.

Mixing Tech and Gold in different proportions would result in different performances, so you can, to some extent, create your own portfolio recipe.

Here’s how to do that.

Mixing The Perfect Gold Recipe For Your Taste

I performed my research utilizing the so-called Efficient Frontier technique, using the platform Portfolio Visualizer. It allows you to backtest different asset allocations, see how strategies would have performed historically, and better understand risk and return. It greatly helped me to improve my portfolio management, and I highly recommend you give it a try.

Nifty Note: The Efficient Frontier is a concept used in investment management to show the best possible return you can expect for a given level of risk (or the least amount of risk for a given return). It’s essentially a graph that plots different combinations of assets, helping investors identify which portfolio mix will give them the highest return for the least amount of risk. The idea is to optimize the balance between risk and reward.

I won’t dive into details here but will write a separate article about it. Here, I will present three main approaches to mixing assets while outperforming the S&P 500.

To keep things manageable, I’ve focused the Efficient Frontier analysis on the last 10 years, as that’s the range available through the free version of Portfolio Visualizer. Based on this time frame, here’s how the performance of our key ingredients — Nasdaq100, S&P500, and Gold — compares.

Let’s take a look at the results before we dive into how different portfolio mixes can impact your risk and return.

Nifty Note: The Sharpe Ratio measures the risk-adjusted return of an investment. It compares the return of the investment to its volatility (risk), helping investors assess whether the return justifies the risk taken. A higher Sharpe Ratio indicates a better risk-adjusted return. Learn more about the Sharpe Ratio, Volatility, and other indicators in my other article for free through the friend link below:

What’s about all these indicators

So, let’s start cooking!

1. Golden Mix For Minimum Volatility

The first dish is a mix of 42.11% $QQQ and 57.89% Gold.

This mix slightly outperforms the S&P 500 while minimizing volatility.

This is how the performance would look:

Note that the outperformance compared to the S&P 500 is really on the edge (intentionally picked so), but the Volatility (Standard Deviation, i.e. how much it fluctuates) is reduced significantly, to 11.83%, the lowest. Also, pay attention that the Sharpe Ratio is much better compared to the individual ingredients.

Isn’t that incredible? We combine 2 assets with a given volatility, and as an outcome, we achieve a significantly better figure when putting them together!

Starting with this portfolio, any balancing towards more Gold would decrease both the Expected Return (i.e., the average annual return) and Standard Deviation, while any balancing towards more Tech would increase them.

I am not interested in going lower, but going higher. So, let’s take on more risk to achieve better returns.

2. Golden Mix For Maximum Sharpe Ratio

Another interesting portfolio would be the one maximizing the Sharpe Ratio, i.e., to have the maximum possible Expected Return for a unit of Volatility.

To achieve the highest return for the least amount of risk, we focus on maximizing the Sharpe Ratio. This means finding the right balance of risk and return.

For this mix, we use 52.06% Tech ($QQQ) and 47.94% Gold. Here’s what we get:

• Sharpe Ratio: The highest among all the portfolios.
• Volatility: Lower than both the S&P 500 and individual Tech stocks.
• Return: Outperforms the S&P 500, but with less risk.

This mix strikes a balance by providing better returns than the S&P 500 while keeping risk lower.

As expected, the Sharpe Ratio is the highest among others. No other QQQ-Gold mix achieves a higher Sharpe Ratio. Any other proportion would result in either higher return or less risk, but the ratio would be less.

It is worth noting that we are beating the S&P 500 while having a lower volatility. So, what’s the highest return we can achieve while staying less volatile than the S&P 500?

That brings us to the third portfolio.

3. Golden Mix For Matching Volatility

To obtain the maximum possible return while matching the S&P 500 volatility, we need to mix in even more Tech. 79.36%, while allocating to Gold only 20.64%.

Here is what we get:

We have significantly outperformed the S&P 500 by almost 3%!

This is my favourite scenario, as it really brings the advantage of a noticeable outperformance while not suffering more than Mr. Market.

3% is a huge difference that compounds exponentially over the years!

I think it is worth seeing how the three portfolios would have grown in these years compared to our benchmark.

The next section will reveal the real growth impact of these portfolios!

Here’s How Much More You Could Have Made

I performed this simulation by using another feature of Portfolio Visualizer called Backtest Portfolio.

We start with a $10,000 initial portfolio, and, for simplicity, we do not do any rebalancing. We just buy the ingredients in the given proportion and let the portfolio grow.

As expected, we achieved higher performance with any of the three portfolios, compared to simply putting the money in tracking the S&P500 index. Over 10 years, these portfolios delivered:

• Minimum Volatility: + $884
• Maximum Sharpe: + $3,677
• Matching Volatility: + $11,341

Obtaining an extra $11,000 with our Matching Volatility portfolio while matching the market volatility is a splendid achievement. And this is without any intervention, just by proper initial allocation!

I am sure that by now I have convinced you to look into this strategy. This strategy isn’t just theory — it’s the foundation of my eToro portfolio.

Let me show you exactly how I built my eToro portfolio around this strategy.

My eToro Popular Investor Portfolio

Besides the Tech and Gold, the core of my eToro Popular Investor Portfolio, username Artenie, also contains exposure to the healthcare sector via the $XLV ETF. Using the same principles presented in this article, I managed to identify it as an additional boost for maximizing the returns while keeping the risk low, as it over-performed consistently while having some un-correlation with $QQQ.

The strategically allocated core components ($QQQ, $GLD, and $XLV) account for about 75% of the portfolio. The other 25% is reserved for cash and individually picked stocks that I think will overperform or that I had buying opportunities at some moment in time, primarily also in the technology sector.

Here is how the performance looks over time compared to the S&P 500:

You can see in the chart how my portfolio outperforms while the beta of 1.04 below indicates a similar market volatility.

That’s it for now, my fellow followers. Now, let’s wrap it all up with the key takeaways.

Closing Thoughts About Portfolio Construction

I’m confident this article has shown you how my strategy works and why strategic thinking is crucial in portfolio construction.

More importantly, I believe I convinced you how important it is to think strategically when building your portfolio rather than following random hypes. Maybe you will find an even better way to build your portfolio using these tools and mindset. In that case, the purpose of the article is over-achieved.

Thank you for reading, and I look forward to sharing more strategies in the next article. Make sure to follow my publication and get the latest valuable insights.

Alex

P.S. If you are not on eToro yet, you might consider joining using my referral link. Regardless if you copy me or invest on your own, eToro is a good and reliable choice for investing in your financial future.

Disclaimer: The information provided is for general educational and informational purposes only and should not be construed as financial advice. Any investment or financial decisions you make based on information provided on this platform are made solely at your own risk. We do not provide personalized investment advice, nor do we recommend or endorse any specific investments, products, services, or strategies. You should consult with a financial advisor or professional before making any investment decisions. All investments come with risks and may lose value. Past performance is not indicative of future results. Any views expressed on this platform are those of the individual author and may not necessarily represent the views of the platform as a whole. The content provided is not intended to be a solicitation or offer to buy or sell any securities or financial instruments.

How to Effortlessly Outperform the S&P 500: Proven Strategy With My eToro Profile was originally published in Master eToro Copy Trading on Medium, where people are continuing the conversation by highlighting and responding to this story.

Introduction: Why This Story Matters

Six years ago, I had no clue how to invest. My first trades were based on hype, and I made every beginner mistake possible. But today, I manage a successful eToro portfolio, and my journey proves that you don’t need luck or extreme risk-taking to grow wealth.

Here’s how I did it — mistakes and all.

These lessons will be the foundation of my stories in this publication, and I believe they’ll resonate with you.

My name is Alex Artenie, and I’m 32. I’m a husband, father, engineer, and a Popular Investor(PI) on eToro. Besides that, I also manage a few other investing portfolios, which I’ll describe in some later posts.

I’m writing this in February, during a winter vacation with my family in the mountains. Though I’m not a fan of winter, I enjoy the playtime in the snow with my son during the day, while swimming in the pool in the evening.

And the breathtaking mountain views? Just a bonus.

A stark contrast to our January vacation in Egypt, where it was so warm that we stayed on the beach the whole time. By the way, I wrote a post about how I financed that trip:

My Dividend-Paid Vacation and How I Achieved That

I mention vacations because they represent what financial independence truly means — the freedom to enjoy life while your money works for you. Believe me, you do not have to sacrifice your daily coffee.

My journey to financial freedom wasn’t built on chance or extreme sacrifices. Instead, I discovered a way to grow wealth while still enjoying life.

6 years earlier…

The Beginning: How I Discovered Copy Trading

My investing journey started in July 2019 on eToro after reading Ken Follet’s novel Paper Money. Despite its mixed reviews, the book opened my eyes to how money moves. It made me realize that earning a salary isn’t the only way to grow wealth — far more powerful vehicles exist. Note that at the time, I was completely ignorant in terms of investing.

That curiosity led me to explore investing platforms, and eToro instantly caught my attention with its zero-commission trading and innovative copy trading feature.

If you’re not yet on eToro, now is the perfect time to start. With a wide range of stocks, a seamless copy trading feature, and a platform trusted by millions, eToro makes investing effortless — even for beginners. Join eToro through my affiliate link and take the first step toward growing your wealth.

So, I went ahead and did just that. I created the eToro account and funded it. That same day, I began copying two Popular Investors.

I made my first mistake almost immediately — I interfered with the Popular Investor’s strategy by manually closing trades when I thought it was the right time. The result? I ended up with worse returns than if I had just left it alone.

When you copy Popular Investors, trust their strategy. Intervening defeats the purpose — you picked them for a reason, so let them do their job.

One week later, I made my first independent trade — Bitcoin ($BTC). And yes, I was just chasing the hype, as you probably guessed.

Three weeks later, I bought my first stock — ON Semiconductor (ON). Looking back, I have no idea why I chose it, anyway.

Week by week, I added more funds and made more trades, gaining confidence with each step. I performed well on my own and decided to stop copying others a few months later, in October.

As my confidence and results grew, I qualified for the Popular Investor program by the end of 2019.

As you can imagine, given that 2019 was a strong year for stocks, achieving green bars wasn’t particularly difficult.

But 2020 was on the horizon — ready to test everything I had learned.

A few months later…

Facing the storms of reality

We all can remember 2020 — the uncertainty was overwhelming. We did not know if we would live to see the next day. Thus, who cared about the stock market?! Unsurprisingly, it crashed.

Driven by the uncertainty, I somehow felt that February was the time to sell my holdings. Many of them hit their stop-loss level (mostly with profits), and others I closed myself.

For this reason, I miraculously closed the month with a +2.15% profit, while the S&P 500 turned red, registering an 8.4% decline.

But that sense of victory didn’t last long, as I fell victim to the March’s bull trap. I started to buy back stocks, but the downward spiral continued, and I ended March with a drawdown of -15.9 %. That month, I underperformed the S&P 500, which dropped 12.5%.

The aftermath of March’s bull trap had me second-guessing my every decision. I hesitated in April, unsure if I should buy back in or wait longer. My lack of experience clouded my judgment, leading to hesitation and missed opportunities. As a result, my portfolio only managed a modest +2%, far behind the S&P 500’s 12.7% surge.

What a disaster…

That was my first encounter with trying to time the market unsuccessfully…

Despite the setbacks, the year ended on a high note, as I registered a portfolio gain of +42.8%.

Despite the strong finish, the sting of the bull trap and missing the market rebound left a lasting impression.

As you can imagine, there were more twists and turns in the months and years that followed, and many times I mis-timed the market or a particular stock.

Experience didn’t come easy.

So, after all those mistakes, what did I learn that I still carry with me today?

5 Essential lessons I learned from Mr. Market

1. Market Timing is Not My Friend

After many failed attempts to time the market, I realized that no matter how much I analyzed, market timing was more about guesswork than skill.

I made so many “informed” decisions, following the hypes, the news, and the earning reports, and in the end, I was performing similarly to the S&P500 index.

It was like swimming hard on the outside of the boat instead of simply climbing on it and reaching the same destination effortlessly.

Something was definitely wrong. Why should I struggle so much with no outperformance?!

Investors are rewarded for the time in the market, not for timing the market.

That lesson taught me to stop trying to predict every market movement. Now, I focus on a long-term growth strategy, trusting that sticking with strong assets through thick and thin will pay off over time.

2. Diversification Is Key for Stability

There were times when I got too confident in certain stocks, thinking that my concentrated positions would outperform the market. But during downturns, my lack of diversification left me exposed, and I saw firsthand how quickly things could turn south.

That experience shaped my current strategy, where I prioritize diversification. I now blend high-growth stocks like tech with defensive assets such as gold, which has made my portfolio far more resilient during volatile periods.

This allocation is based on tech, gold, and healthcare, which come from many analyses in the light of Modern Portfolio Theory.

I will perhaps write a different article about that, but the long story short is that by properly balancing in a portfolio assets with little correlation, you could increase the portfolio performance for a given return, i.e., increase the return-to-risk ratio.

So, by late 2022, I adopted a strategy I call “Core and Satelites”, consisting of a core with strategically allocated tech, gold, and healthcare, plus a minority of hand-picked stocks to spice things up.

The goal is to outperform the S&P 500 while maintaining a similar volatility.

Did I succeed? Well, time will tell.

3. Emotional Control Is Crucial

During market crashes and recoveries, I made impulsive decisions driven by fear and uncertainty. I panicked, selling off stocks at a loss, only to hesitate when the market rebounded. Each time, I was letting emotions — not logic — dictate my moves, and it cost me.

One painful example? My investment in Peloton ($PTON). The pandemic fueled massive hype around home fitness, and I got caught up in it. I bought in late at $149, convinced it had more room to run. But when the world reopened, so did the gyms — and Peloton’s outlook crumbled. I held on far too long, finally selling at $23 (an 85% loss) over a year later.

That hurt a lot, but the losses weren’t just financial. They made me realize that my decision-making process was wrong. They shook my confidence and slowed my progress toward my long-term goals.

It was a wake-up call.

Realizing how much potential I left on the table in the past made me rethink how I approached investing.

But emotional control isn’t just about avoiding panic or excitement. The real challenge lies in the biases we don’t even notice. Our minds play tricks on us, subtly pushing us toward decisions that feel right but aren’t always rational.

I break down the biggest psychological traps in this article, including how they cost investors thousands:

Your Greatest Enemy Is You — Behavioral Finance in Dividend Investing

One of the most common traps? Availability Bias — when investors make decisions based on what they hear or see the most, rather than doing the proper research. In investing, this leads to chasing popular stocks that might not be right for your strategy. Many investors, including myself, have fallen for this at some point, mistaking popularity for profitability.

Once I understood the psychological biases influencing my decisions, I knew I needed a solution. That’s when I began developing a system to remove emotions from my investment process.

Relying on news headlines or gut feelings isn’t a strategy. A solid investment framework, built on research and discipline, helps cut through emotional noise and make better decisions.

That’s why I built a system that removes emotions from the equation — focusing on research, risk management, and long-term conviction instead of hype.

4. The Power of Systematic Investing

Instead of chasing quick wins, I adopted a more systematic approach to investing. We already talked about diversification, so I won’t over-stress that. What I want to emphasize here are two additional tactics that I wish I knew when starting out:

• Dollar-Cost Averaging (DCA)

One of the first steps I took toward more disciplined investing was implementing Dollar-Cost Averaging (DCA). This means I add money to my investment account every month, regardless of market conditions. Most of this goes into buying the indexes I mentioned earlier, like $QQQ, $GLD, and $XLV. However, I also keep a portion aside for specific stock picks or cash to take advantage of future opportunities.

One of the main advantages of DCA is that it helps smooth out the effects of short-term market volatility. For example, during a market dip, I end up buying more shares for the same amount of money, lowering my average cost per share.

Over time, this strategy lets me ride the ups and downs of the market without trying to time the perfect entry point. It’s a steady, reliable way to invest.

• Define Clear Entry & Exit Rules

Another key tactic that keeps me on track is defining clear entry and exit rules for my stock picks. I base my decisions on a combination of strong fundamentals and technical factors.

When I find a stock that looks promising, I wait for the right technical signal to enter — usually using Bollinger Bands to determine if the stock is in a favorable range.

If you’re unfamiliar with this technical tool, I’ve written a detailed guide on how Bollinger Bands work, which you can check out in my article on technical analysis:

Technical Analysis of Stocks (Part 2)

Once I make the purchase, I set a stop-loss level based on support levels to manage risk. But I don’t apply stop-losses to the market indices (like $QQQ or $XLV) because I’m holding those for long-term growth. I use the stop-loss only on my individual stock picks to protect myself from any sudden downturns they might face.

By sticking to these systematic tactics, I was able to build a more disciplined and structured approach to investing. However, the real lessons didn’t come from following a perfect strategy — they came from the mistakes I made along the way.

This is where the value of experience lies: in the mistakes, not the perfection. And as much as I’ve built a more strategic system, I know that it’s the bumps along the road that have truly shaped my investing journey.

The real value in investing comes from learning through missteps, evolving from them, and becoming better with each step along the way.

5. Experience Comes from Mistakes, Not Perfection

Early on, I had this idea that investing was about being perfect — finding the best stocks at the right time, timing the market, and getting everything right. But the reality is that’s not how it works.

It’s easy to think that every move you make needs to be flawless, but in truth, the most significant growth happens when things don’t go according to plan. Here’s why:

• Embracing the Learning Process

The most valuable lessons didn’t come from my wins but from my losses. Every mistake taught me something that refined my strategy, corrected my approach, and sharpened my skills.

For example, there was a time when I ignored the warning signs of a stock that was overvalued because I got caught up in the hype. That mistake led me to realize the importance of performing a proper valuation of the stock.

Price is what you pay, value is what you get.

Now, I focus on analyzing investments more objectively, relying on both fundamental and technical analysis, which helps me avoid mistakes like that. I still buy sometimes over-valued stocks, but the difference now is that I do it knowledgeably.

Without those early losses, I would not have truly learned what value investing is.

• Risk Management Over Perfection

Investing isn’t about eliminating risk or always getting the perfect entry point. It’s about managing risk, making calculated decisions, and refining your approach as you go. Mistakes help you improve your ability to do that.

For instance, the importance of setting stop-loss orders, which I described earlier, came to me the hard way as well. I learned that managing downside risk is just as important as identifying upside potential, after I encountered losses I could have avoided.

This lesson didn’t come from perfection — it came from the mistakes I made along the way.

• Evolving from Mistakes

The key is to keep evolving from each mistake, adjusting your strategy, and making it more refined over time. Perfection isn’t achievable, and frankly, trying to achieve it only slows you down. Instead, it’s about staying consistent, reviewing past mistakes, and making improvements with each decision you make.

So, don’t be afraid of making mistakes. Embrace them, learn from them, and continue to evolve your strategy. It’s these mistakes that will ultimately make you a better, more disciplined investor.

I came across this video recently, and I found it incredibly insightful. It covers a lot of the same lessons I’ve learned over the years on eToro — what works, what doesn’t, and the key mistakes to avoid. If you’re serious about improving as an investor, I highly recommend giving it a watch.

The Future: How I’m Helping Others Succeed

I started this publication to empower eToro users to make smarter investment decisions, with a special focus on Copy Trading. This forum will be filled with valuable content, educational insights, and practical strategies to guide you, but my primary goal is to help you navigate the world of Copy Trading with confidence and clarity.

I believe Copy Trading is one of the most powerful tools available for investors today. It allows you to have your money managed by seasoned investors without any extra cost. Essentially, you can invest by mirroring the strategies of experienced traders, which means you’re leveraging their expertise to help grow your portfolio — absolutely free.

There’s no need to go it alone or waste time trying to learn everything on your own when you have the opportunity to copy someone who’s already built a track record of success.

My goal is to help you find that perfect match. I’m here to show you how to use Copy Trading effectively — how to pick the right investors, how to monitor your investments, and how to stay disciplined in your approach. I’ll guide you through the process so you can make the best decisions for your financial future and avoid common pitfalls.

Stay Ahead with Expert Insights

If you’re serious about making smarter investment decisions and leveraging the power of Copy Trading, make sure to follow this publication. I’ll be sharing actionable insights, proven strategies, and tips to help you make the most of eToro’s platform and reach your financial goals.

By following, you’ll stay updated with the latest trends, tips, and opportunities to enhance your investment journey. Together, we’ll unlock the full potential of Copy Trading!

Don’t miss out — hit the follow button now and join the journey toward smarter, more effective investing.

I wish you successful investing,

Alex

I encourage you to visit my eToro Popular Investor Profile:

https://www.etoro.com/people/artenie

Disclaimer: The information provided is for general educational and informational purposes only and should not be construed as financial advice. Any investment or financial decisions you make based on information provided on this platform are made solely at your own risk. We do not provide personalized investment advice, nor do we recommend or endorse any specific investments, products, services, or strategies. You should consult with a financial advisor or professional before making any investment decisions. All investments come with risks and may lose value. Past performance is not indicative of future results. Any views expressed on this platform are those of the individual author and may not necessarily represent the views of the platform as a whole. The content provided is not intended to be a solicitation or offer to buy or sell any securities or financial instruments.

What 6 Years on eToro Taught Me About Winning (and Losing) Money was originally published in Master eToro Copy Trading on Medium, where people are continuing the conversation by highlighting and responding to this story.

For decades, investing has been framed as a male-dominated industry. But as more data emerges, one thing is becoming clear: Women are quietly outperforming men in the stock market.

Despite being underrepresented in finance, women investors and fund managers consistently deliver higher returns, lower risk, and better long-term performance. So, what’s driving this advantage? And what can all investors — regardless of gender — learn from it?

In honor of International Women’s Day 2025, let’s break down the data behind women’s success in investing and why their approach works so well.

📊 What the Research Shows: The Data Behind Women’s Investing Success

🔹 Women-managed portfolios outperform men’s by 0.4% annually.
According to Fidelity’s 2024 study, women investors tend to take a more disciplined, long-term approach, which results in higher average returns over time.

🔹 Women hold their investments 27% longer than men.
A Warwick Business School study (2024) found that women trade less frequently, allowing their investments to benefit more from compounding growth.

🔹 Female investors are 40% less likely to panic-sell.
Vanguard Research (2024) reports that during market downturns, women are far more likely to stay the course rather than make emotional, short-term decisions that hurt returns.

🔹 Only 10% of global fund managers are women — yet they outperform.
Morningstar (2024) highlights that, despite their underrepresentation, female fund managers deliver stronger, more consistent long-term returns compared to male-led funds.

🔹 Companies with diverse leadership teams are 25% more profitable.
McKinsey & Company’s latest research (2024) shows that businesses with higher female representation in leadership achieve superior financial performance.

🔥 Why Women Excel in Investing

The data is compelling, but what exactly makes women more effective investors?

1. Lower Trading Frequency = Higher Returns

Men tend to trade 45% more frequently than women, according to a study by the University of California. The problem? Frequent trading often leads to overconfidence, higher fees, and mistimed exits — which eat into returns.

Women, on the other hand, are more patient and selective, allowing their investments to grow uninterrupted.

2. Emotional Discipline in Market Downturns

Market corrections and bear markets test every investor’s patience. Research shows men are more likely to react impulsively, selling assets in fear.

Women, however, are significantly less likely to panic-sell, choosing instead to ride out market fluctuations — a strategy that historically leads to better long-term returns.

3. Risk Awareness & Thoughtful Decision-Making

Women tend to take calculated, measured risks rather than chasing speculative gains. While men often exhibit higher risk tolerance, this sometimes leads to aggressive, high-volatility strategies that underperform over time.

This balanced approach helps women investors preserve capital while still achieving strong returns.

🔮 The Future of Women in Finance

As more women take control of their finances and enter leadership positions in investment firms, we can expect:

✅ Greater market stability due to smarter, long-term decision-making.
✅ Reduced volatility, as patient capital flows dominate short-term speculation.
✅ More sustainable growth driven by disciplined investing strategies.

Despite their proven success, women remain underrepresented in finance. Closing this gap isn’t just about equality — it’s about better financial outcomes for everyone.

💡 What We Can All Learn from Women Investors

Regardless of gender, investors can apply these key lessons from successful female investors:

1️⃣ Think long-term — Don’t get caught up in short-term market noise.
2️⃣ Avoid unnecessary trading — Frequent moves hurt returns.
3️⃣ Stay disciplined in downturns — Resist emotional decisions.
4️⃣ Take calculated risks — Not all risk is bad, but reckless risk is.
5️⃣ Diversify strategically — Balance growth opportunities with stability.

By adopting these principles, every investor can improve their performance and build wealth more effectively.

🌷 Celebrating Women’s Success in Investing

This International Women’s Day, let’s not just celebrate the achievements of women in finance — let’s learn from them. Their patient, disciplined, and strategic approach to investing has been proven to work.

It’s time we start recognizing — and applying — their winning strategies.

📢 What’s Your Take?

Have you noticed these investing patterns in your own experience? Let’s discuss this in the comments!

The Surprising Advantage Women Have in Investing was originally published in ILLUMINATION on Medium, where people are continuing the conversation by highlighting and responding to this story.

Every year, people celebrate Women’s Day with flowers, chocolates, and thoughtful gestures. But what if this year, you gave something that grows in value instead?

Women drive trillions in global spending, shaping industries from luxury fashion to athleisure, beauty, and wellness. And investors who understood this trend early have been rewarded with massive gains.

Some of the most successful brands have built their dominance by serving women’s needs — and their stocks have soared as a result. Instead of another short-lived gift, why not celebrate Women’s Day by owning a piece of these companies? Here are five powerhouse stocks that have delivered outstanding returns over the past decade.

💄 Ulta Beauty ($ULTA) — +500% Total Return

The beauty empire that keeps growing.

Ulta has transformed the beauty industry by offering a one-stop shop for high-end, drugstore, and exclusive cosmetic brands — all under one roof. Beyond products, Ulta has built an industry-leading loyalty program with over 30 million members who consistently drive repeat purchases.

🔥 Why it’s winning:

✔️ Exclusive beauty partnerships & premium brands
✔️ Massive e-commerce expansion
✔️ Loyal customer base driving repeat purchases

🏋️‍♀️ Lululemon ($LULU) — +400% Total Return

The brand that turned leggings into an empire.

Lululemon didn’t just sell activewear — it created a lifestyle movement. Women love Lululemon’s quality, fit, and status appeal, turning it into one of the strongest premium brands in retail. The company has expanded beyond apparel into shoes, accessories, and even wellness products.

🔥 Why it’s winning:

✔️ High-margin, premium pricing power
✔️ Expansion beyond apparel (shoes, accessories, wellness)
✔️ Global growth, especially in Asia

👟 Nike ($NKE) — +300% Total Return

More than just sneakers — Nike dominates women’s sportswear.

Nike has doubled down on its women’s segment, creating stylish performance gear, exclusive collaborations, and empowering ad campaigns. Whether it’s for running, gym workouts, or streetwear, Nike is everywhere. The company’s direct-to-consumer model has also driven higher margins and stronger brand loyalty.

🔥 Why it’s winning:

✔️ Direct-to-consumer shift = bigger profits
✔️ Expanding women’s product lines
✔️ Strong brand loyalty & global dominance

👜 Hermès ($HESAY) — +600% Total Return

The luxury powerhouse that never goes out of style.

Hermès doesn’t just sell handbags — it sells exclusivity. The legendary Birkin bag is more than a fashion statement; it’s a status symbol and an investment. Hermès’ ultra-limited supply model keeps demand sky-high, leading to decades of unstoppable growth.

🔥 Why it’s winning:

✔️ Timeless luxury with insane resale value
✔️ Loyal high-net-worth customers
✔️ Scarcity model fuels demand

👗 Revolve ($RVLV) — +50% Since 2019

The Instagram-fueled fashion disruptor.

Revolve has mastered influencer marketing, making it the go-to platform for trendsetting millennial and Gen Z women. It’s fast, data-driven, and perfectly in sync with what social media shoppers want. While a newer stock, Revolve has already proven it can compete with established retailers.

🔥 Why it’s winning:

✔️ Influencer-powered marketing = viral trends
✔️ Data-driven inventory = fewer markdowns
✔️ Expansion into beauty & lifestyle

💡 Final Thoughts

Women’s spending power is shaping the future of retail, beauty, and fashion. These brands have capitalized on trends, built insane customer loyalty, and rewarded investors with huge returns.

Instead of buying another traditional gift this Women’s Day, consider investing in companies that women love and trust. Because some gifts appreciate in value — literally.

What do you think? Would you ever consider investing as a Women’s Day gift? Drop your thoughts in the comments! 💬

Disclaimer: The information provided is for general educational and informational purposes only and should not be construed as financial advice. Any investment or financial decisions you make based on information provided on this platform are made solely at your own risk. We do not provide personalized investment advice, nor do we recommend or endorse any specific investments, products, services, or strategies. You should consult with a financial advisor or professional before making any investment decisions. All investments come with risks and may lose value. Past performance is not indicative of future results. Any views expressed on this platform are those of the individual author and may not necessarily represent the views of the platform as a whole. The content provided is not intended to be a solicitation or offer to buy or sell any securities or financial instruments.

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🎁 Forget Flowers — The Best Women’s Day Gift? These 5 Powerhouse Stocks! was originally published in InsiderFinance Wire on Medium, where people are continuing the conversation by highlighting and responding to this story.

We all read about financial freedom and dream of achieving it. But life goes on today, also. You won’t start living at, say, 50 when you will achieve financial independence, hopefully. You also live today.

So, how do you find the best balance between enjoying life every day and building your financial future?

A good approach that I find a brilliant idea can be found in Robert Kyozaki’s book Rich Dad, Poor Dad (affiliate link).

The idea is like this:

Use the money you worked for to buy assets. Let the owned assets finance your lifestyle.

Quite wise.

I have been investing for a couple of years, and in 2023, I started focusing more on income investing. Every month, I use my salary to add new income-generating assets to my portfolio. That way I want to create a “passive salary” that will allow me escape the 9–5.

I am excited to say that the income portfolio grew, and the passive income I received in 2024 reached the point when it financed the trip with my family to Egypt.

In this article, I will describe the trip and show a breakdown of my passive income streams.

Before we get started, I recommend you check out my book, Live Off Dividends, where I dive into more details and prepare the reader for the investment journey.

So let’s get started.

The Trip to Egypt

Well, the first thing you must know is that I live in Romania, which means I didn’t have to cross oceans to reach Egypt. That, of course, reduces the cost of the trip.

I traveled with a company called DERTOUR, which arranged almost everything for me: the flight, the airport transfer, and the all-inclusive hotel.

Why an all-inclusive Egypt? I think it is pretty obvious, considering I did it in January. That is a destination where you can enjoy warm weather and bathe in the sea during winter. The all-inclusive option comes almost automatically because this is how most hotels work there.

Besides the money I paid to DERTOUR, I could have avoided any extra expenses, but that was not the case since I purchased some very nice excursions.

Oh, and I had to also leave some tips almost everywhere. This is how it works in Egypt. If you ever want to go there, take some change to give as tips.

I won’t delve into more details regarding traveling experiences since this is not a traveling blog.

This is an investing blog, so let’s talk about money!

Vacation Expenses

Below are the two main categories of expenses:

• Flight and accommodation: $1,396
• Excursions: $295

That sums up to $1,691.

Please be aware that I did not include any shopping here as that is not part of the trip itself.

Now, you can expect that my passive income throughout 2024 exceeded $1,691.

Let’s see.

My Passive Income Streams

I currently own 4 passive income streams. By “passive,” I mean income that comes with minimal intervention. I do not account for royalties as passive income. In other words, the money has to work on its own.

Let’s analyze each of them one by one.

Income from Bank Deposits

Before you jump to criticize that bank deposits are bad investments, you should know that the primary scope of my deposits was to build a kind of short-term real estate investing fund.

Each deposit was for 4 months only, and I had 4 of them, i.e., I was receiving an interest payment each month and putting the money in a new 4-month deposit. This would allow me to have a secure method of having money in the short term for investing in a small apartment while also benefiting from an interest. Much better compared to if I held them in a savings account.

By the end of 2024, I had not invested in any apartment yet, so I re-adjusted the strategy. I will use solely debt when the time comes to real estate investing, and I moved the money to a more profitable vehicle than deposits — government bonds.

So, the total passive income in 2024 from bank deposits reached $386. Below is the monthly distribution:

Looks like the bank deposits paid well over the excursion expenses :)

Let’s move next.

Income from Government Bonds

As described above, I reallocated the deposits to bond in late 2024. Also, the bonds I bought mostly pay their coupons in December.

For this reason, the income from bonds sums up to only $127.

I can only add a little explanation for why I considered the bond instead of the deposit. It is straightforward: higher interest rate and no taxes.

Find more about investing in bonds in my related article on Medium:

Is it the right time for Bonds?

Income from Crowdfunding

I have quite a small crowdfunding portfolio at Crowdestate. I created it because of the very attractive yields, but I limited the money amount, i.e., I reached my target portfolio value and will collect the rewards.

The income from Crowdestate reached $348 and was distributed as follows:

I left the best for the end. Let’s see the dividends.

Passive Income from Dividend Investing

I started my dividend-oriented portfolio on Interactive Brokers (affiliate link) in late 2022. I regularly contributed to it and re-invested all the dividends.

Doing that continuously allowed me to receive dividends during 2024, which amounted to $1,101.

So, the most significant part of the vacation was paid out of dividends, as you can see.

Here are the monthly dividends:

The majority comes from the dividend-oriented portfolio on Interactive Brokers. Still, a significant part comes from eToro (affiliate link) accounts, although the portfolios there are not necessarily built for dividends.

By the way, my portfolios on Etoro are public, and you can see my performance. One of them is a popular investor, and I invite you to copy my trading activity if you are interested:

• Artenie — low-risk, popular investor, can be copied
• Alex_Invest1992 — medium risk, cannot be copied

Since you are not able to see my Dividend Portfolio on Interactive Brokers, I will post below a screenshot for your reference:

If you want to learn more about dividend investing, you can follow my writing, as I have many dividend-related articles. A good start can be this one:

Discover Why Dividend Income Can Be The Best Way To Your Prosperity

That’s basically all. Let’s draw some final conclusions:

In Short about Financing my Vacation from Passive Income

Here are the fast figures.

Income vs Expenses

• Total Passive Income: $1,962
• Total Expenses: $1,691

As you can see, I still have some money left in my pocket :)

Passive Income by Asset Class

• Bank Deposits: $386
• Coupons (Bonds): $127
• Crowdfunding: $348
• Dividends: $1,101

Conclusions and What Comes Next

I hope my story inspired you to get started with your financial journey.

If so, consider buying my book, Live Off Dividends. I describe there the strategies and tools that I use. I am sure you will find many interesting ideas there.

Next year I will continue my contributions to the different portfolios of course, but the primary target will be to purchase a small apartment and give it out for rent.

Maybe beginning of 2026, I will write a story about that :)

Until then, I wish you successful investing and see you in the following article. Don’t forget that you are living every day and are not starting at retirement. Find your best balance between lifestyle and financial security.

All the best,

Alex

Disclaimer: The information provided is for general educational and informational purposes only and should not be construed as financial advice. Any investment or financial decisions you make based on information provided on this platform are made solely at your own risk. We do not provide personalized investment advice, nor do we recommend or endorse any specific investments, products, services, or strategies. You should consult with a financial advisor or professional before making any investment decisions. All investments come with risks and may lose value. Past performance is not indicative of future results. Any views expressed on this platform are those of the individual author and may not necessarily represent the views of the platform as a whole. The content provided is not intended to be a solicitation or offer to buy or sell any securities or financial instruments.

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Thanks for being a part of our community! Before you go:

• 👏 Clap for the story and follow the author 👉
• 📰 View more content in the InsiderFinance Wire
• 📚 Take our FREE Masterclass
• 📈 Discover Powerful Trading Tools

My Dividend-Paid Vacation and How I Achieved That was originally published in InsiderFinance Wire on Medium, where people are continuing the conversation by highlighting and responding to this story.

Investing isn’t just about picking the right stocks or chasing the highest returns. It’s about aligning your financial strategy with your evolving life goals, risk tolerance, and priorities. As you progress through different stages of life, your focus shifts — from building wealth in your younger years to preserving it and generating steady income as you approach retirement.

The good news? With the right plan, you can make your investments work harder for you at every stage of life. Here’s how to refine your investment approach based on your age and financial priorities.

Before we get started, I recommend you check out my book, Live Off Dividends, where I dive into more details and prepare the reader for the investment journey.

In Your 20s and 30s: Focus on Growth and Accumulation

At this stage, time is your greatest advantage. With many years ahead, you can afford to take on more risk for the potential of higher returns. The primary focus here is on capital appreciation and wealth accumulation.

Key Characteristics:

• High growth potential: Seek stocks with long-term growth potential rather than immediate income.
• Dividend reinvestment: Reinvesting dividends helps accelerate wealth accumulation through compounding.

Goal:

• Capital appreciation and wealth accumulation.

Portfolio Split:

• 80% aggressive investments, 20% defensive.

In Your 40s and 50s: Balancing Growth and Stability

As you enter this stage, major life milestones like homeownership, funding education, or planning for retirement come into focus. The emphasis shifts towards balancing risk and reward while generating stable income.

Key Characteristics:

• Moderate growth: Focus on assets that offer both capital appreciation and growing dividends.
• Steady income: Incorporate investments that provide consistent payouts to support your evolving financial needs.

Goal:

• Balance risk and reward while building a steady income stream.

Portfolio Split:

• 60% aggressive investments, 40% defensive.

In Your 60s and Beyond: Capital Preservation and Income

With retirement nearing, the focus shifts to capital preservation and generating a stable income stream. Fewer years remain to recover from losses, so a more defensive approach becomes important.

Key Characteristics:

• Low-risk investments: Prioritize assets with minimal volatility.
• Reliable income: Focus on high-yield stocks, bonds, and fixed-income options to maintain cash flow.

Goal:

• Preserve capital and generate a steady income stream to sustain your lifestyle.

Portfolio Split:

• 30% aggressive investments, 70% defensive.

The Importance of Regular Portfolio Reviews

As life progresses, your financial needs evolve — major life events like buying a home, having children, or retiring can shift your goals. It’s essential to periodically review your portfolio to ensure it remains aligned with your changing circumstances.

Questions to Ask:

• Does my allocation still align with my financial goals?
• Am I taking on too much — or too little — risk?
• Are my investments generating the income I need?

Striking the Right Balance

Younger investors may prioritize the growth of dividends over high yields, as focusing on stocks that steadily increase dividends can lead to substantial gains over time.

On the other hand, as you approach retirement or other financial milestones, your focus may shift toward higher dividend-yield stocks to generate more immediate income. In this phase, stability and consistent payouts become more critical than growth. While high-yield stocks provide a reliable income stream, they can also come with risk or lower future growth potential, so it’s crucial to strike a balance.

It's Never Late To Start Investing!

Your investment strategy should evolve with your life stage. By staying proactive and tailoring your portfolio, you can ensure it supports your financial goals — whether it’s buying a home, funding retirement, or planning for your future.

Review and adjust your portfolio regularly, such as annually or semi-annually. For instance, you can review your investments before the tax season, using tax loss harvesting to sell off investments at a loss, which can be offset against gains made in other investments for the year.

💬 What’s your current investment strategy? Help me understand — how do you adjust your portfolio to meet your evolving goals?