The opportunities and risks in copy trading result directly from the nature of this form of investment. Because with social trading or the special form in which you automatically copy the behavior of another trader, you temporarily give control of this part of your capital.
You can basically cancel copying a trader, but in our experience with copy trading you will not be able to suspend individual trades. Accordingly, a poor or unsuccessful trader that you follow and whose trades you copy is a real risk to your capital.
In contrast, there are the opportunities that arise from the fact that you can benefit from third-party know-how, strategies and asset classes that are unknown to you, without you actually having to take action yourself. Although you may still be wondering “ What exactly are stocks?”, You can already make money with stocks by copy trading on the platforms.
Social trading with the best day trading broker can be very lucrative. Above all, it expands your repertoire and enables you to participate in trading even when you are not currently active. This is how social trading works today: