It’s time to see what copy-trading is about and how to apply it within the current markets.
Social trading is an innovative and excellent way to profit with and from the most experienced traders! Copy-trading is related to the automatic copying or duplication of the traders of other winning traders. This is what is known as copy-trading or mirror trading. Once the signal provider, who is an experienced trader has entered the market, it will automatically open and manage the same position in your account. You will have to choose the signal provider from whom you want to buy your movements. As simple as that, awesome right?
Rules for choosing a signal provider in copy-trading
Choosing a signal provider for copy-trading should take some time. For this you can follow these basic rules:
-Look for a signal provider with a low rate of losses, and the percentage that you are willing to lose in your account.
-Monitor the performance of each signal provider over time and pick the ones with a successful track record. If the signal provider has bad ratings, don’t give it a chance.
-Avoid non-risk averse traders who abuse leverage. So, manage your account, diversify your portfolio, choosing different signal providers following your trading styles, your traded assets, strategies, etc.
-Regardless of how carefully you select your traders, stop following them if their performance declines. And, if you notice any changes in your signal provider’s behavior, such as risk management or trading frequency.
-Take precautions because an undisciplined signal provider will not be cautious when managing your traders. For example, a signal provider driven by fear or greed will abuse stops loss and other mechanisms.
-Remember to act on time and copy trading guidelines. So, start following your signal provider’s strategy in a demo account.
-Follow signal providers that trade in more than 2.3 pairs or instruments. And turn your back on signal providers that use marginal system, double positions after a loss in the hope of recovering said losses.
Conclusion
Copy-trading has become very practical in the markets, but you have to keep many things in mind to be able to do this. We hope that the information that we shared in this article can be of great help to you! Remember to share this article with your friends so they can make money too!