Copy Trade is a commonly found term when starting trading in the Forex market. That's an ideal tool for less experienced beginner traders or traders who are just starting out but have less time. They are interested in copying the trades of experienced traders with a good trading history.
This article will introduce you to Copy Trade in more detail.
What is Copy Trade?
Copy Trade, or copying a trade, is the act of imitating a trader's buy signal. This is a trading method that allows novice traders to follow the trades of professional traders.
Even if you have little financial knowledge or limited time, you can trade like a professional and manage orders, setting the level of risk. Some platforms may charge an average fee of $5-10 per trade for a volume of 100,000 units.
Who is suitable for Copy Trade investment?
- Traders who have no trading experience.
- Traders who do not have time to monitor the market throughout the day and do not want to constantly observe prices.
- Investors who have experience but lack discipline in managing their own portfolios.
Why is Copy Trade popular?
Because, there are many profitable traders from Copy Trade in the Forex market, and allowing new traders who have just entered the Forex industry may not be interested in creating a system or learning a trading strategy on their own.
Thus, this tool helps beginner traders can speculate by simply following the trades of a major trader, they can earn a profit.
Advantage
- Save time: Just follow professional traders to automatically enter and exit trades.
- Learning opportunities: It allows you to learn from other people's strategies while making money at the same time.
- A good starting point for novice traders, reducing the learning curve and risk of loss.
Steps
- Basic knowledge is important for choosing a leader for Copy Trading.
- Efficient risk management is important.
- If choosing a broker with Copy Trading services, it is recommended to choose a broker registered with an accredited agency to increase credibility.
- Evaluate the leader's long trading history and statistics, emphasizing the profit-loss ratio and the Maximum Withdrawal rate.
- The trade leader for Copy Trading should have a minimum track record of 1 year.
Conclusion
Copy Trade offers an advantage in terms of time saving and risk reduction by using a trading system of traders with high win rates.
However, it is important to learn the trading history and risk management of the trader you plan to copy. While the high growth rate of a portfolio is attractive, it can also come with higher risks for your investment portfolio.
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