Updated: Aug 2
What is Copy Trading?
Copy trading, also known as mirror trading, allows an investor to copy the trading activity of another trader directly. This copying trades technology is frequently used by less experienced traders who wish to copy experienced traders in their day-to-day trading cycle. This means that beginner traders (copy traders) will rely on more professional traders (strategy providers) to manage the opening and closing of trades of various financial instruments across different financial markets. This, of course, works oppositely as well, whereby expert traders, who are often referred to as Strategy Providers, can share their experience with other investors who benefit from it by copying their trading activity. One trader copying the trades of another trader can be achieved in a number of ways. The most common methods are by means of generating trading signals and copying trades using purpose-built copy trading platforms.
Benefits of Copy Trading
2. Great for new traders
3. Provides the ability for someone to trade with the limited market knowledge
4. You can learn how to trade from expert traders with years of experience
5. Variety of signal providers, and you can view their track record
6. You can manage risk more effectively
7. Removes emotion from the trading decision process
8. Diversification across different markets
9. A potential source of income for signal providers
10. Can help experienced traders, not just beginners
Disadvantages of Copy Trading
1. Signal providers will not always make winning trades .
2. If you rely on copy trading only you will not develop proper trading skills and knowledge
3. Some signal providers require a commission to copy their trades
TO GET STARTED
Follow this instruction here to REGISTER, VERIFY, FUND, and start COPY TRADING:
LiteFinance - https://tinyurl.com/3mk7tub3
NOTE: BEFORE YOU COPY OTHER TRADER'S STRATEGIES BE SURE TO CHECK THE FOLLOWING FIRST:
a. Their risk level
c. Trading History
Watch your account grow and withdraw your profits! Note that there is a Commission for the profit on your account that will be automatically deducted from your account by the system.
Forex Trading is a high-risk investment. Invest only what you are willing to lose. Past result does not guarantee future results.
Frequently Asked Questions (FAQs)
Should I use copy trading?
All trading involves a degree of risk, and so does copy trading. However, it is your account, you have full control of it, and you can adjust risk parameters to suit your own requirements. Even though you’re copying another trader, it’s always your responsibility to conduct due diligence and not just blindly follow someone because they have proven success in the past.
For example, the trader with the highest return might experience massive drawdowns or have a very short trading history. Other traders might have lower returns but demonstrate greater consistency. Unfortunately, there is no way to remove risk from trading, but you can use risk management strategies to reduce it.
Is copy trading profitable?
If you find a successful trader to copy, copying the trades of that person can be profitable. However, in general, trading is inherently risky, and copy trading is no exception.
No trader wins all the time, and even though you might have picked them because they have a solid track record, the provider you choose to copy might go through a period of drawdown – meaning that you would be facing losses. One way to try and mitigate this risk is to use multiple providers, preferably with different trading strategies and styles, to achieve diversification.