Most people who want to go into trading don't know how to do it. Let's say you're one of those people. As a result, you will decide to take the "easy solution" and opt for copy trading. The big advantage is that you only need to feed your account. You don't have to do any analysis, you just have to copy the trader you choose to follow. Thus, you will make the same profitability as the chosen trader, doing almost nothing.
What is copy trading?
Copy trading has pros and cons. Of course, I'm going to list them for you. So, at the end of the article, you will be able to know if copy trading is for you or not.
What is copy trading? Is it a form of social trading? Can we combine it with your personal trading? Is it a good thing to use it? I will answer you in the best possible way in this article.
So copy trading is actually tracking all the positions (trades) of a trader in his Forex broker without changing anything. You will only copy the strategy, the buying and selling positions, without putting your personal touch to get as close as possible to the monthly profitability that your trader makes.
What is social trading?
To answer the question "Is this a form of social trading?" we will define social trading together.
Social trading is a method of posting analyses, observations, opinions, graphs, methods and strategies to other traders via a dedicated forum-type platform. If you use social trading to place your positions without involving your own opinion, copy trading is a form of social trading.
Social trading requires research and analysis on your part. Indeed, you are going to have to be able to find the right observations and the right traders who are really experienced. Indeed, I do not like social trading too much because everyone can say professional trader and everyone can post anything and everything, free from anonymity.
Copy trading: Here are the pros and cons
Benefits of copy trading
Copy trading has many advantages, I decided to select 3 which are for me the most important.
The first advantage of copy trading is that you don't need any knowledge in trading. Indeed, it is the trader you are going to follow who does all the work by analyzing and placing all the positions. You just have to trust him.
The second advantage that is also very interesting is that it will save you time. Of course, manual trading may not take you much time, but copy trading allows you not to devote yourself to trading at all.
The third advantage I have selected is that it is quite possible to combine copy trading with manual trading or other trading method. Which is very interesting if you want not to put your eggs in the same basket.
Cons of copy trading
Unfortunately, if it was too beautiful, it wouldn't be fun. There are obviously drawbacks in copy trading and I have selected 3 so that you have a perfect balance between the pros and cons. I'll give you three of each and I'll let you decide for yourself.
The problem with copy trading is that you depend solely on the trader's shares. If the person you are following falls, you also fall. I therefore advise you to discuss beforehand with the trader you want to follow in order to have testimonials and a history of his personal performance. Without this information, I would tell you to run away and find someone else.
The second drawback connects a little with the first: you will stagnate. Since you're just going to follow his positions, you're not going to learn anything. In case of gain, it is not thanks to you, but to the trader you follow. In case of loss, it is not because of you, but because of the trader you follow. Regardless of the results, you are not involved at all. So it's hard to learn from your mistakes if you don't.
The last problem that is still to be raised is that you also depend on technology.
Conclusion: Is copy trading for you?
So I'm going to answer this question in summary form so that I can understand what you need to know before you venture into copy trading.
Copy trading is right for you if:
If you do not want to go into manual trading and you have no intention of becoming an independent trader but you are still interested in the world of the stock market, then I recommend copy trading. You'll be able to make money and see how it works without getting started or having any knowledge.
Of course, I recommend copy trading if you fit this profile but I assume that you accept the other constraints. You have to accept the fact that you will depend on a trader who will take care of your monthly profitability. You should also be aware that you should not expect to understand trading only through copy trading.
For this, you need training that will be much more suitable and educational oriented. If you're curious to see how a training works, you can download my offered training that will show you some basics in video format.
Here's my link to join my channel on telegram and start now.
For now, my channel offers copy paste. Copy trading is coming soon. Take the opportunity to register!
Copy trading doesn't suit you if
If you refuse to depend on a trader, copy trading is not for you. You have to dare to get started and trust someone who will take care of your profitability, and I know how difficult it can be for people who are septic in nature. Copy trading is not for you if you have the attention to create your own trading system.
Indeed, if you want a career in trading and you aim to become an independent trader, copy trading is not suitable. It is better that you make your own mistakes, you will learn much faster. In this case, my training is much more suitable for you.
Train, train on a fictitious account and get started!