TABLE OF CONTENTS:
What is the Copy Trade and how it works?
Copy trade is a trading feature in which traders can copy and follow other traders. Investors can generate profits and earn extra income through copy trading.
It is widely accepted today that extra income by investing is becoming increasingly higher. Aside from generating more revenue other than the primary income, it is building the empowerment of an individual to understand economic movements as well as financial management.
However, investors need time to study to make lesser mistakes or take lesser risks. With more advanced technology, Copy Trade can help traders to trade like other successful traders from all over the world, even in Asia and Africa. Besides, if that trader has chosen any order or has bought in an asset, you can copy and follow that trader in every order.
Following this method is advantageous if you have limited time to study and analyze any market. All you need to do is trading via the program provided by your designated broker. You may also not just follow a single trader but follow many other traders as well.
Although this type of trading is trading like other traders, it’s not that you can copy trading of any trader without gathering information about them. It is very important that you first invest your time to study and understand a mistake. Also, you need to know the trader you want to follow and their risks by checking their historical trading profile over the last two years. Once you are confident, then you can choose the trader you want to copy and follow.
Once you have copied a trader, all opened trades, as well as all future actions, will be automatically copied to your account. The most important thing before copying, if this is your first trade, is not to invest too high. You should check the results of your trades to avoid taking too high risks.
Currently, there are different studies cases showing the success of this trading type. Most studies suggest that up to 10% of traders who choose Copy Traders wisely tend to become successful. The percentage is higher than those traders who choose Copy Traders without checking the trader’s profile.
Which group do you think is the most suitable for this type of trading? There is probably no fixed answer. If you are a new amateur trader who is not used to trading by yourself, this method may be another alternative if you want to invest. However, Copy Trade is more like investing with people even if you don’t have to spend most of your time studying the market to trade. However, you should certainly check out and study the profile of the trader you want to copy. This is to minimize the risk of loss. Initially, you may take some time to check out the trader’s profile but it is definitely worth doing that before investment.