The Passive Trading System
The way I created a an average ROI of 33%
5 Years of Testing
The Passive Trading System invests in traders like you would purchase a stock. The Passive Trading System Utilises the eToro platform and the copy trader function to take advantage of the best traders on eToro and generate a consistent and safer return through a diversified risk portfolio which adapts to the individuals personal risk tolerances.
eToro is a FCA regulated company with over 15 million users and has been around for over a decade, So I know its safe company with a track record!
In this short guide I will go through the very basics of the Passive Trading system. so you can:
- Understand why wealth building is an important goal
- Understand Passive Income
- Understand How the Passive Trading System Works
- Know how you can get started even with a small budget
- Make a decision whether the Passive Trading system is right for you!
I created this system from 4 years of hard work experimenting with 100 of strategies. Only to find out the best strategy is often the simplest. I will provide an explanation of how the Passive Trading System works so you can decide whether it is right for you or not!
Increasing your wealth is important!
The saying money wont make you happy is absolutely true! Money alone wont make you happy however it can help with your life and alleviate untold amounts of financial stress which at the very least wont make you unhappy!
Françoise Sagan said it best:
“Money may not buy happiness, but I’d rather cry in a Jaguar than on a bus.”
The ultimate goal of this system is to create financial independence. This is because financial independence bring on untold benefits.
- Increased wealth (obviously)
- Reduced stressed as you don’t need to worry about making rent or paying bills
- More and better holidays
- More and better food
- More and better nights out
- Newer cars
- you are in a position to help your family and others
- But ultimately financial independence buys you absolute Freedom
For me, It is the last two on the list above that drives me.
Having wealth gives me the ability to help my family and to help my friends and to help others if they ever get in trouble.
Having wealth means freedom. If you have wealth you can quit your job at any point knowing you will be fine. It also allows you to take new opportunists like starting a business knowing you will be fine and to essentially do whatever you want whenever you want!
Passive Income is the key
Before I look into the main reasons why creating sources of passive income is so important, let’s first look at what it is.
“Passive income is money that comes to you. It’s money that works for you.”
Passive income might be investing in dividends stocks, renting a house out or setting up a business and having a manger run it while you collect the money. Or as you will see later Passive income might be copy trading on eToro. Whereas, active income is exchanging your limited time for money.
While initially passive income takes time to develop compared to active income the benefits are MASSIVE.
- Passive income gives you the freedom of time
- It reduces your financial stress, anxiety and fear of the future
- It allows you to pursue the things you love rather than what pays the bills
- It gives you the ability to live and work from anywhere
- It provides a platform for financial stability and growth
You see you have to be investing in some sort of passive income if you ever want to be truly financially free and ideally you will invest in several different types of passive income to reduce your risk.
The Passive Trading System provides one source of passive income for you. But I will be here to help you develop other sources. But as with any great adventure. You must take that first step.
What does it take?
You may have heard by 100s of gurus that making money while you sleep is the key to success. While its a cliche, it is a true statement.
Everyone has 24 hours in a day. After those hours are up you do not get them back. Yet some people make obscene amounts of money.
My favourite example
“Jeff Bezos makes more than £3 million an hour!”
How much do you make an hour?
But the questions remains, how does he make so much money in the same hour as you?
guts, vision and sustained effort.
The bit the media doesn’t publicise is that amazon for the first 6 years of its existence barely made a profit!
So what did it take?
It took guts, vision and sustained effort and in return, Jeff Bezos manged to become one of the richest people on the entire planet.
Multiple Streams of Income
The average millionaire has 7 sources of income. Now that may sound like a lot but you can very quickly build up these sources and start to see a massive difference.
So here are a 7 examples of different income streams you could use as a base!
- Your Day job – this is a source of active income, ie you are putting in time in return for money, this is often the most stable, but the earnings are often limited by the market. (primary Source for Most)
- Employer pension scheme – this is a long term income stream that you add into while at work so you continue to have an income when you retire! (Should be maxing this out)
- Government Schemes – an example is the Lifetime ISA, this is another pensions scheme which the UK government provides a hefty 25% bonus on investments up to £4k a year. (should be maxing this out)
- Investing- this is buying various financial assets such as stock and holding for a long time to grow alongside investments (average return of 10%)
- Rental Income – Another income stream is purchasing a property and renting it out. (Average return of 3.5%)
- Starting a side hustle – this could be a blog or ebay selling and buying, or using your day job and doing a little freelancing on the side. (can supplement income but limited to hours in the day)
- The Passive Trading System – This is high return form of generating passive income. Which generates an average ROI of 33.18% over the last 5 years. (much higher returns than other sources)
Before you invest in the Passive Trading system
So we all know building passive income streams in imperative to building wealth. This system is a high growth strategy to help build an alternative income stream but comes at increased risk!
So before you think of investing in alternative investments max out the two which in my opinion are the best for long term wealth building.
- Max out your employers pension scheme
- Invest in the Lifetime ISA
- Then look for additional streams of income, such as the Passive Trading System and Investing!
So you have a job, your contributing the maximum into your employer pension scheme and are maxing out the LISA. Now is when you should be looking for a better rate of return and to further diversify your income.
This is where the Passive Trading System really comes into its own league and through this section I will show you how just investing £200 a month could see you:
- Build an additional stream of income
- Generate £30k a year in passive income
- Achieve your financial freedom.
But first you need understand what the Passive Trading System is all about!
The Origins of the Passive Trading System
I started the idea of the Passive Trading System in 2016. At this point I just started trading online. I was copying a top trader on eToro and was getting a steady 4% profit per month. A great return.
However, I got greedy.
I thought I could trade better and make more money. However, the reality quickly set in. I over leveraged positions and closed at a loss. I burnt through my money and joined that famous 80% of investors who lose money club.
All because I couldn’t stick with what worked! But I was determined to create a success of trading. Fast forward to 2019 I made over 70.70% profit.
It cost me a lot of time to learn and cost me a lot of money.
The more I looked the more I noticed it. People were joining eToro copying for one month and then trying to trade by themselves doing exactly what I did years earlier.
Its a strange feeling knowing I can help people but powerless to do so. So I created the Passive Trading System to encourage people to reach financial goals quicker and in a safer way!
The average return with the passive trading system is 29.1% But my selection of top traders have averaged 33.18% for the last 5 YEARS.
The Philosophy of Passive Trading
New passive traders are unaware of the risks, just like an investments portfolio you can not go all high risk and expect to make a fortune!
Now where most people fail is they choose only the high risk traders trying to achieve massive profits.
Instead of chasing the Golden egg, the Passive Trading System utilise the famous 80/20 rule.
For those who are not familiar the 80/20 rule, it is the phenomenon that 80% of the results come from 20% of the work. And you will see this pattern everywhere and the idea was first bought to light in 1896.
It is a proven fact.
So how do we benefit from this? Well we Invest 80% of the funds into lower risk traders and 20% into higher risk.
We then adjust our portfolio every 12 months if needed and cut those who are not performing.
But we always maintain a 80/20 split in our eToro portfolio.
It is that simple. But it works.
Setting your Financial Goal
So you know how the Passive Trading systems works and what you need to achieve! Before you start any journey you need a goal. To see what you need to become financially free you need to work out your minimum:
- Living allowance, ( Rent/mortgage bills,fuel, food)
- holiday allowance, ( how much you want to travel a year)
- car allowance, ( what kind of car you would like)
- Clothes allowance
- Phone allowance
- Hobby allowance
- LISA (£4,000 a year)
Here’s an example list
- Living Allowance -£1200 a month or £15,000 a year
- Holiday Allowance – £2000 a year
- Car Allowance – £400 a month or £4800 a year
- Clothes Allowance £100 a month or £1200 a year
- Phone Allowance (£30 a month or £360)
- Hobby Allowance £200 a month or £2400 a year)
- LISA -£4000 a year
This amounts to £29,760. A good goal that I think the majority of people wold be very happy with!
Using the Passive Trading System
The key to success with the Passive Trading System is sustained effort (which I willhelp you with) exactly what Jeff Bezos did to become the richest person in the world!
If you deposit an initial £1000 and kept on putting in £200 a month then in 8 years you could retire. If you have a larger initial deposit or can afford larger monthly payments then you can hit your goal even quicker!!
However, I think £200 a month is a completely sustainable target,
That’s £50 a week.
or £10 a working day!
Check out some example results below.
(what you put in)
(what you will earn in the year!)
(the total amount invested)
|Balance ( Total amount of money at the end of the year)|
The chart above assume an initial £1000 deposit and just £200 per month! You can speed the process up by depositing more initially and making greater monthly deposits.
For example If you have £50,000 already you could hit the £30,000 a year in just two years!
Thanks to the role of compounding interest the more you can invest now the more you will make later!
What exactly do you need to do now?
You should now understand the philosophy of the Passive trading system, have a goal you want to hit, and you now have an idea of how much you need to deposit and how long to invest to hit your goal!
I suggest using eToro because it has been round since 2007, has over 15 million users, Is FCA regulated and the user face is incredibly intuitive, it is also what I use for all of my guides.
I explain exactly how to do this in my guide HERE
You don't need me to get started...
My website has all the information you need to get started developing your Passive Trading System, so if you want to do it alone you can.
All you have to do is stay consistent and be smart!
Unfortunately, humans are not the best at being consistent! So instead lets work together to hit your goals!
If you do want additional support then then sign up below receive a free eBook and get put onto the email list so you don’t miss out anything!