COPY TRADING

What is copy trading?

Copy Trading is a trading method in which you copy or overwrite the trades of another trader and copy all trades for you into your account. In this way, you can find successful traders and copy exactly their trades for yourself. Of course, this requires that by using a broker or platform that offers this service, find a professional trader who fits your attitude, tastes and goals, and has a good trading history and ultimately mimics his trades. In this process you are called an inverter or investor and the opposite trader or trader. The trader also makes a profit by receiving a fixed commission or a percentage of the profits of the trades. It is interesting to note that copy trading is very popular in the Forex market and has recently gained a lot of popularity in the crypto market.

Choosing the best trader to copy trades

In order to choose a trader to copy trading, it is necessary to consider your own circumstances and goals and to pay attention to the items we will mention below. One of the factors of trader is his time or his background. It is natural that the longer he has a history, the more likely he has experience and the so-called hot and cold he has tasted.

The next thing is the amount of copier it is the trader. The more people copy of him, the more credibility he is because more people have trusted him. Of course, we’ve seen a lot of cases where very famous traders have also done heavy losses to copyers. In these cases, we always observe the principles of capital management and never trust any trader fully, because in the whole nature of the forex market is based on probability and the market is not definitive and fully analysable; of course, this is one of the features that makes Forex trading attractive.

The next thing that you need to check about the trader is to also check the amount of profit or losses it has made. Be sure  to check the drawdown  level of the trader at different time intervals. High Dravedan indicates a high trader risk.

Finally, you need to pay attention to the trader’s own inventory, as it may have created high percentage of profits with low inventory. It is the high gain with balance and high inventory that shows the advantage of the trader. When the amount of capital increases, it naturally becomes harder to control emotions in trading, and here is the difference between professional and novice traders.

Advantages and disadvantages of copytrading

Advantages

If you choose the right trader, you will have a good profitability.

At the same time as the copying of trader trades you can also go through the learning process and learn a lot of training tips by analyzing the trades that are copied into your account.

For those who are at the beginning of the journey, the risk of losing capital is high, and the risk is reduced by using a copy trade (if you choose the correct copytrade method and its settings). It also helps these people to enter the market faster.

You can have control over your account and stop losses and … Determine.

By using the ability to copy from multiple traders you can increase the diversification of your investment and reduce the risk of your account.

This system has made it possible for professional traders to earn double money.

Enabling the use of the experiences and strategies of the market professionals

Due to the automatic approach of this method, the need to be part of the trading system is reduced and may be automatically copied while you sleep, saving you time and energy (if you choose the right one).

Disadvantages

No matter how carefully you choose a trader and choose a fully professional trader, there is still a possibility of error in deciding which trader to make. This error can lead to your loss, and the possibility of errors in the settings of the trading platform can also cause you losses.

Some traders demand a high commission, which means your profit margin will be reduced.

Some traders consider the minimum capital required to start copytrading as high amounts. This means that you will need more capital to get into this and your risk will increase.

If you are content with copytrading and do not learn to trade on your own, you may gradually become accustomed to imitation and lose confidence in analyzing and trading.

You are not aware of the analysis and decision making mechanism and strategy of the trader, and as a result, the educational aspect of this process is reduced for you.