Have you ever heard of copy trading (or called social trading)? It’s a perfect opportunity for people who don’t have knowledge, experience, or time for forex trading. That’s right. You don’t need to spend days learning the forex market. You don’t need to spend hours and hours trading to get some experience. You don’t even need to stick your eyes to the screen all day long checking your trades. With copy trading, you can easily copy the trades of the best forex traders out there and make money just as they do.
Now you may be wondering how this can be real. Let me explain to you how copy trading works and what are its secrets, then you can decide for yourself if you want to try.
WHY IS THE FOREX MARKET SO HOT?
Each market is a battleground and the forex market is said to be the toughest. Over 90% of investors fail and even lose all their money in this market. However, they keep investing in it. Although they lost money or they know that this market is very tough, more and more people take part in this market. Why?
That is because the remaining 10% of traders is very rich and their earnings from forex trading is huge.
Forex trading is a chance for you to earn a big amount of money in a short time. That’s clearly the dream of many people. Therefore, they are ready to lose a certain number to be in the 10%.
THE TRADERS WITH NOTHING
It’s a question asked by many: How can I be a successful investor when I don’t have time, knowledge, and most important, experience? If I join now, is that just like throwing my money on the street? It’s true. When you don’t have enough knowledge and experience, you will be the prey of countless predators in the forex market. To become the predator yourself, you must spend a lot of time, money, and effort. Yet, that’s not even enough to be successful in forex trading because there are other variables like luck, emotion, intelligence…
And for the professionals, they have something that most people don’t. They are wise. They have their rules. You may say that they are very strict. Another factor that they all have is discipline, very high discipline. They control their emotions very well. They know when to keep going and when to let go, a quality that not everybody has.
You think you can be like them? Come on. Don’t lose hope so soon. Because this is when copy trading comes in. Copy trading creates a chance for people who don’t have knowledge, time, or experience in the forex market to make money.
WHAT IS COPY TRADING/SOCIAL TRADING?
Copy trading is exactly what it sounds. You copy the trades of other traders. There will be many strategy providers and you can choose the one whose tactics suit you the most. The trades in the provider’s account will be copied to the copier’s account. If they make profit, you will make profit as well. If they lose, you’ll lose too.
Any actions conducted by the provider such as open a position, set stop loss, close a position… will be conducted similarly in your account according to your fund ratio. For example, they deposit 10,000 USD for a trade; however, you only have 100 dollars, so the ratio is 1 to 100. Therefore, if they make 100 dollars, you only make 1 dollar. Sounds fair, right?
Moreover, you still have control over account. If midway through the trade, you decide to do differently, you can easily disconnect from the provider and carry on.
THE ADVANTAGES OF COPY TRADING
To become a successful and profitable trader, you have to learn a lot of things: trades monitoring, orders management, emotion control, psychological management, fund management, and risk management to name a few. It takes a great deal of time to learn them all.
But with copy trading, you don’t have to learn all those things. Let me show you some great advantages of copy trade:
There are a huge number of traders who want to be providers in copy trading. Why so? Because if they make a profit and some on copy their traders, they will get an extra percentage of the profit based on the agreement between them and the copiers. You can go to any copy trading platform and you can see that there are a lot of traders showing their accounts and the percentage they want. The acceptable rate, in my opinion, is 30%. So on that platform, it’s like a little society, with providers and consumers working together to make sure everyone is benefited.
A variety of trading strategies
With social trading, you can easily find hundreds of different trading strategies. Each trader will come up with a tactic that they think will work best for them. Thanks to that, you can now check their profit rates, deposits, time frames, risk rates and choose the one that you’re most comfortable with. You can either be a scalper, a day trader, a swing trader, or even a gambler. The choice is yours.
On some copy trading platforms, you can even check the trader’s trading history. How much did they make? How much did they lose? What did they do in certain events? How did they react? You can see all those information when you check their trading history. With this feature, scammers can hardly operate here.
ADVICES FOR COPY TRADING
Only do this with the top 10 best forex brokers. Let me explain. At the largest brokers, traders are working for a sustainable income in the long time. Therefore, they are serious about forex trading and you can follow them for longer. On the other hand, at smaller brokers, there will be traders who show you really high profit rate but only works in a short time. After that, they will get rid of that account and create numerous new ones to attract other copiers. I don’t recommend you to follow them.
Moreover, the best traders only do business with prestigious and trusted forex brokers. If you want to follow the best, you should find the best forex brokers in the world. See the best copy trading platform here.