A beginner's guide to copy trading

[mitchalcling]

Copy trading is a process of copying the positions opened by another trader. Through automated copy trading, you link your account to a professional trader’s profile as a result of which all their current positions and actions they take are mimicked on your account.

It’s true that copy trading is ideal for beginners who have little to no experience about forex trading but it is beneficial to experienced traders also who are thinking of diversifying their portfolio but don't have requisite knowledge and time to trade on their own.

How to start copy trading?

There are a number of copy trading websites these days. If you want your copy trading account to flourish, you must make sure that you look into following things:

1. The best copy trade platform is the one that is fully regulated, transparent and reputable. Copy investors should be very careful at this stage and should start forex copytrading on only the best platform for copy trading.
2. There are not many brokers who offer forex copy trading service on their platform. Even if some do, they won’t be the best fit for you. Therefore besides choosing forex copy trade software, put some effort to find the best copy trade broker also.
3. Once you have created your forex copytrading account, your next step should be to choose a trader whose goals and risks align with your goals. The best copy trading app would allow you to track past performance of a trader and even rank copy traders on the basis of their profits and maximum drawdown of the last few months.
4. Your responsibility doesn’t end with linking your account to a trader on one of the copy trader platform. Though someone might be doing all the effort for you, the set and forget approach still doesn't work in copy trading. Follow your progress and if at any point you think that you are not getting benefitted by following a particular trader, you should unfollow them before you lose most of your money.

Is copy trading reliable?

The forex copy trading service offers a great opportunity for new traders to venture the risky world of trading. When you copy from a seasoned trader from one of the best forex copy trading platform your odds of making profits substantially increase. However, you must understand that there are no guarantees. No matter how good a trader has performed in the past, they may still hit a losing streak. This is one reason that you should never invest all your amount with one copy trader that you find on any auto copy trading platform but diversify your investment among two or three traders.

 

[Pontoon]

Automated copy trading is really useful for new traders. Usually when beginners start trading they often look for an effective and viable trading strategy but it’s not really that easy. It takes professional traders’ a lot of market research, hardwork and time to build a workable strategy but with the help of copy trading websites, copy investors can benefit from the expert knowledge of a copy trader. There are many copy trading brokers who are offering forex copy trading service these days and lets you open a copy trading account where you can automatically copy the strategies of a skilled copytrader. Just find the best copy trade platform or best copy trading app and start auto copy trading stocks, cryptocurrencies, commodities or forex. Remember one thing that the more successful traders you follow, the better chances you have of being a successful copy investor.

 

[Pediment]

1. The best copy trade platform is the one that is fully regulated, transparent and reputable. Copy investors should be very careful at this stage and should start forex copytrading on only the best platform for copy trading.

I've been trading forex but want to get into crypto trading also. As for now, I don't think I should take the plunge as crypto market is extremely volatile and I don't have any experience. Can you suggest me the best platform for copy trading where I can find copy crypto traders?

 

[Patrizia Bruno]

I've been trading forex but want to get into crypto trading also. As for now, I don't think I should take the plunge as crypto market is extremely volatile and I don't have any experience. Can you suggest me the best platform for copy trading where I can find copy crypto traders?

You can try zulutrade or etoro, both offer crypto copy trading

 

[Pediment]

You can try zulutrade or etoro, both offer crypto copy trading

Thanks, Can I try it on a practice account first? I don’t know if these platforms offer demo accounts or not.

 

[Patrizia Bruno]

Thanks, Can I try it on a practice account first? I don’t know if these platforms offer demo accounts or not.

They do! You can first practice on a demo account and should only move to a real account when you think you are ready.