What is Copy Trading ? Advantages of Copy Trading
Copy Trading is a kind of portfolio management that allows you to directly copy the positions taken by other traders and connect a part of your portfolio with others. By linking profile to other professional traders, you copy all of their current positions on the market, and any action they make.
Advantages of Copy Trading
Copy Trading allows a trader to copy the top professional traders on the marker. They still can maintain complete control over the trades they make, including when it comes to deciding which investors they want to copy and how each trade is adjusted to their portfolio.
The level of control makes Copy Trading perfect for new traders to learn about the financial markets they are entering. Instead of reading articles and relying on other resources, they can learn directly from top professional traders while still benefiting from their trades at the same time.
Copy Trading also lets traders be a part of the market in real-time. They can apply the same technical indicators like what used by the top professional traders, follow strategy from the same sources, learn about the trades being made based on analysis as well as the decision-making process.
What you should consider when use Copy Trading
A lot of new traders think that trading is just about merely putting buy and sell orders, then "boom," they’ll become an instant millionaire. Unfortunately, life does not always as our wish. Many people with that kind of thinking are burning an awful lot of money in the market. To start Copy Trading, first, you need to understand and consider the following:
1. Copy trading is a very high-risk type of investment
The profit in Copy Trading is probably one of the highest out of all other passive income investments. Therefore, the risk is also high. You should make sure that the risk Copy Trading is something within your risk appetite.
2. Only invest what you can afford to lose.
You can lose all your account if you’re not careful enough. So, make sure only to invest the money that you consider “disposable.”
3. Expect in a long-term investment.
You can not expect to earn a significant amount by copy trading for days. Just like any investment, it will take time for your copy trading portfolio to grow.
4. Learn at least the basics of trading.
If you’re going to try with this type of investment, you should at least know and understand the basics of trading. It will help to pick good professional traders to copy.
How to start Copy Trading
1. Choose a copy trading platform
Feel free to choose what you think is good for you. There are some of the Platforms I am currently using, such as BingBon, Let Me Trade or eToro. You can click to the text to see the review about those platforms.
If you haven't yet had an account on those platforms, you can register through my link to receive exclusive bonuses
BingBon: Receive $100 after you verify your phone number a. SIGNUP HERE
eToro: Receive $50 gift once you signup on my link and make your first deposit. SIGNUP HERE
2. Deposit to your account
You can start with a small amount first, $100 or $200 per trader. But then again, make sure to only invest your disposable money.
3. Choose professional traders to copy based on your risk appetite
Make sure to examine the professional traders who you want to copy. Look at their historical performances (at least 1 -2 months) as well as their volume per order, risk management, etc. Take all the time you need in this process until you found the traders who meet with your risk appetite.
As a beginner in Copy Trading, you may fail many times on choosing professional traders to copy. Well, you know !! In trading, everything is possible. Even the best traders fail some times and so can you. You may not trade the actual thing; you are "trading people." They may bring fortunes or disappointments to you.
Don’t expect much. Trading is always one of the riskiest types of investment. You can't avoid losses. What you can do is learn how to minimize it by assessing your risk profile and copying the traders within your risk appetite.
Crypto Moon is not a financial advisor, All contents on this site are not financial advice. All information on the Crypto Moon website is informative and not recommendations to buy or sell anything. You are responsible for your investments, only should invest money you can afford.