When you first come to the forex market, you will clearly be overwhelmed by the huge amount of knowledge that you have to take in in order to trade efficiently and profitably. One of the best ways to learn forex trading is follow the footsteps of the best forex traders out there. Yeah, why the hell not? They are people who have tons of experience and secrets. They have proven that their strategies work and they have what it takes to succeed in this market.
Now the question for us is: How to learn from them the most effectively? I will show you the answer in this article.
Definition of the best forex traders
How do you know a trader is among the best forex traders? What standards would you choose to evaluate them? Some people will say it depends on how much they make from forex trading. Others think that it’s how little they lose when they trade. Some even claim the decisive factor is how risky their trading strategies are.
In my opinion, there is no absolute best trader. They are all right. Everyone has their own ways to define success. We can’t decide that for them. To some, the richest forex traders are the best. To others, the ones who help their followers earn are the best. It can either be making a lot of money in a single event, or making a stable income in the long run. You can only decide by yourself.
How can you find the best forex traders?
Have you ever thought of this? It’s not like people post their trading income on Facebook. How can you know who are doing well in the forex market?
I’m not talking about those people who advertise their forex courses on the internet. My advice is don’t trust them. Most of them were forex traders. They came up with a trading strategy that made them a lot of money in a short time. Then it didn’t work anymore, so they went teaching it as an attempt to make some more from that strategy. Now you can see that those strategies did work in the past, but not anymore, so don’t waste your time and money on that.
The best way to follow the best forex traders (who are still actively trading) is Copy Trading.
Do what the best forex traders do
Copy trading is a relatively new innovation in the forex market. It is a service offered by forex brokers that let you copy the trades of other traders. There are traders who let people copy their trades – the providers – and the us, the copiers. The procedure is very simple. You go to the platform, and there will be a list of traders who allow copy trading.Then you choose one or many traders based on various aspects such as profit rate, risk score, commission… And that’s it. When you choose a provider, every execution made in their account will be conducted exactly the same in your account. You will make as much as they make based on a ratio between how much you and provider put in trading. For example, if the provider put $1000 into a trade and you only have $200, you will have the ratio of 5:1. So if the provider earn $500, your take will be $100. Very simple.
How to do it effectively?
Now you know about copy trading, I will show you how you can copy trades efficiently and safely. I will take an example on Exness social trading platform, which I’m using right now.
Check out Exness social trading.
When you log in, you will see a list of providers. You can see that they are ranked based on different criteria such as low risk score, medium risk score, new strategies…
For each provider, you can see 4 most information about them: risk score (ranging from 1 to 10), profit rate (percentage), commission, and leverage.
When you choose one, you can see more details about him/her, such as: profit rate through time, how many people have copied him/her, what currency pair was chosen.
Moreover, you can even find their trading history. How much did they make over time? What is their lot sizes? Which currency pair did they use? It’s all there. Very easy to do.
After considering all those factors, you can choose yourself a provider to start copying.
Advices for beginners
- Don’t put all your money on one provider. That’s not smart in terms of investing. You have to place your investment equally on multiple providers so that when one loses, others can make it up.
- You can either follow high risk or low risk strategies. It doesn’t matter. Just remember to spread your fund properly.
- The acceptable commission rate is 30% and less.
Get more information about copy trading here.