What is copy trading?
There are many ways and means of trading successfully. Regardless of whether you are trading stocks or other assets, there are several approaches you can take to succeed, such as copying trades
. And so you can benefit from the experience of others.
You can rely on your own strategies and expertise, but there is also the opportunity to use the experience and the skills of other traders! This is possible, because here you automatically copy the trades of other traders and use their experience. In the following we show how to successfully copy trades, identify suitable copy trading
platforms and what to look out for.
How does copy trading work?
Soberly, it is nothing more than external money management. After trading, you take a certain part of your capital and invest it in another trader's trading. However, the latter does not trade directly with your money, but with its own money, while your capital automatically “follows” this money. This approach is known as copy trading, a special form of social trading.
The availability of this trade depends on the social trading platform
, but can basically be used in both forex trading and CFD strategies - or while you are learning day trading. From a technical point of view, it is quite easy, because the orders that the trader you follow are also transferred directly to your order book in the platforms. You buy and sell the same securities. Depending on the platform, you can follow professional traders as well as other private traders and copy their trades and thus participate in their trades.
What is important in a copy trading test?
If you are looking for a new strategy or investment opportunity, you must, of course, know and consider key figures and important factors in the assessment. There are special parameters that are particularly important in order to have a good experience.
First of all, the entry barrier must be observed. If you still have unanswered questions, for example“ What is Forex?” Or “ What is day trading ?” You can already invest money via copy trading because you use the expertise of other traders. However, you should start with smaller sums and copy trades.
In addition, transparency is a major issue with this system. It must be clear on the copy trading platforms
how much the traders earn whose trade is copied. Their trading history and order book should be just as transparent. Since you have to rely on the expertise of another trader, you have the right to certain information. These should be disclosed openly by the platform.
More info here acorn2oak-fx.com/forex-copy-trading.html