3 Days To A Better COPY TRADING

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3 Days To A Better COPY TRADING

In this post, we’ll go over how to get started with copy trading, how to choose who to copy, and other important considerations like cost and the minimum amount required to begin copying other traders. But, before you begin copy trading, you must first determine which markets you want to copy your trades from.

What you will learn

Day 1: Selecting which markets that you should trade from

Crypto

Cryptocurrency, sometimes known as crypto-currency or crypto, is any type of digital or virtual currency that uses encryption to safeguard transactions. Cryptocurrencies operate without a central issuing or regulating authority, instead of relying on a decentralized system to track transactions and create new units.
Risks: They are volatile: unanticipated swings in market sentiment can result in price swings that are abrupt and unexpected. It is not unusual for the value of cryptocurrencies to collapse by hundreds, if not thousands, of dollars in a matter of seconds.

Risks:

  1. Cryptocurrencies are currently unregulated by both governments and central banks since they are decentralized currencies. They were created without government monitoring or influence in mind, and are instead monitored through peer-to-peer internet protocols.
  2. They are vulnerable to human mistakes and hacking: cryptocurrencies are vulnerable to technological flaws, human error, and hacking because they are digital currencies.
  3. Forks or discontinuation can affect them: cryptocurrency trading entails additional dangers, such as hard forks or discontinuation. When a hard fork happens, there may be significant price fluctuation in the days leading up to the event, and we may cease trading if we don’t obtain trustworthy pricing from the underlying market.

Stock Market

The stock market refers to a variety of exchanges and other venues where publicly traded companies’ shares can be bought and sold. These financial transactions take occur on institutionalized official exchanges (physical or electronic) and over-the-counter (OTC) markets that are governed by a set of rules.

Risks: 

  1. Returns aren’t guaranteed — While equities have traditionally outperformed the market over time, there’s no assurance you’ll make money on a stock at any given time. Although a variety of factors can help evaluate a stock, no one can anticipate how a stock will perform in the future. There’s no certainty that the company will pay dividends or that prices will rise. Or that a company will even continue to exist.
  2. You could lose money – Stock values fluctuate frequently and for a variety of reasons. When you purchase and sell stocks, you must be willing to take the risk of losing all of your money, especially if you are not going to invest for the long term. You risk losing more money than you invest if you utilize leverage to invest in stocks, such as buying on margin or short selling.
  3. You may have heard about a stock that is steadily increasing in value. When more investors choose to invest in the stock, prices rise even higher. However, as investors sell to cash in on the big gains, the price might collapse just as quickly.

Forex Market

Foreign exchange, or forex, refers to the process of converting one currency into another. This procedure can be carried out for a number of reasons, including commercial, tourism, and international trade.

Forex is exchanged on the forex market, which is available 24 hours a day, five days a week for banks, corporations, investment firms, hedge funds, and retail traders to buy and sell currencies.

Risks: 

  1. Small changes in the market can have a large influence. The majority of Forex trading instruments are extremely leveraged. You just pay a percentage of the trade’s price upfront, but you’re still accountable for the entire amount.
  2. Exchange rates fluctuate a much. They have a tendency for moving around a lot, even for short periods of time. Currency changes can go against you and cause you to lose money, thus there are major investment risks.
  3. Markets in foreign exchange are notoriously difficult to anticipate. Exchange rates are influenced by a variety of things.
  4. Risks associated with forex brokers. You might not be able to get your money back if your Forex broker goes bankrupt. That’s why only choose brokers that are highly regulated.
  5. Trading delays can have a significant impact on outcomes. Because of a lack of liquidity in the market, execution risk, or computer system issues, you may not be able to make transactions when you want. 

Day 2: Pick Platforms and Traders

Picking Platforms

As soon as you selected a particular market that you want to trade in, select a platform that is reputable and has a proven track record of providing its users zero to minimal server downtime — which is very important because the core of copying from trade provider into your broker heavily relies on the system uptime of the platform that mediates these trades. 

There are some platforms that we’re currently using such as Zulutrade, AutoTrade, and Signal Start. These platforms are essentially our best pick for our Forex copy trading services. 

However, if you wish to choose other markets such as Crypto and Stocks, you may begin exploring Etoro. They do have all kinds of instruments to trade from, and they’ve been in the market for years already.

Picking Traders

We have already discussed many things about copy trading on this blog. One article of ours mainly focuses on the mistakes of beginner copiers who follows underperforming traders from several platforms, even on the platforms that we featured above. 

Make sure that you read this article before moving on if you want to know how to pick a trader, learn which parameter you should look at first, and more importantly, how to master spotting a risky, conservative, and low-risk investment. 

Day 3: Setting things up and going live

Picking Brokers

If you’re into Forex, here are some shortcuts that we provided for you:

  1. Our Broker recommendation (brokers that we currently use and trust fully)
  2. 5 Best ECN Forex Brokers in 2022
For Crypto and Stock market, our easy vote is Etoro and Binance.
 
Setting up accounts 
It highly depends on the requirements of the trader that you’re about to copy. The parameters that you need to set up are usually posted on the description or bio of the trader. You may need to look for these types of information before you create an account on the broker: 
  1. Leverage
  2. Minimum account balance

Please note that qualifying on these two parameters are crucial to become successful in copying the same profitability and level of risk. If the requirements are too high for you, you could always skip to a new trader. 

For Forex

On a platform like Signal Start, we have a step-by-step guide on how you can set-up an account from both platform and broker. 

 

Conclusion

Copying Trading is a way for you to jump start your trading career. We can say that it is the easiest way for you to break  the ice, but always proceed with caution. Research is the most crucial part in doing this business. That’s you need to do your due diligence before you start going live. If you want to keep updated, make sure to revisit our blog from time to time as we are repeatedly producing articles that could help stay updated or reminded. Subscribing to our newsletter is another way to go. 

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