Social trading platforms are the new buzzwords in trading and investing, but does copy trading really work, or is it too good to be true?
Can you make money with copy trading?
Can you get rich through copy trading?
Lets investigate that.
With a 95 percent failure rate, it’s easy to see why copy trading is becoming more and more popular. It seems like a simple way to make money through trading. But are copy trading platforms safe and legal to use? Is copy trading a real way to make money, or is it a scam?
Beginner traders think that people who are good at trading are better than them. Most traders find it hard to make money trading, so learning how to make money through copy trading is a great way to solve an old problem.
But how reliable is copy trading? What are the risks of copy trading, and can you lose money if you do it?
Think about not having to do technical or fundamental analysis or look for profitable opportunities every day.
Once you’ve set up your copy trading account, you can go about your business and earn a passive income without having to trade for yourself.
Copy trading is a way for many traders to improve their trading skills.
Instead of making money by doing nothing, they learn from experienced copy traders and try to trade like them. It costs a lot to pay for a trading mentor or a high-priced trading course. So, copy trading could be a very cheap way to start building your trading career.
Mirror Copy trading is an option for clients of the best social trading platforms. The idea is easy to understand. You choose a professional trader who has been approved by the Copy trading platform, put money into your account, and make a copy of the trader’s account.
The trades are made by the copy trader, and the same trades are made in your copy trading account.
All you have to do now is keep track of your daily gains. Yes, that does sound great, but is copy trading really that easy, and can you really make money from it?
All trading involves risk, so it’s important to learn as much as you can about a professional trader before you give them the job of making money for your copy trading account. So, you will know a lot about how they trade, and if you copy their trades, you can look forward to many profitable months.
The first and most important step in starting a copy trading business is to find the best trader to copy.
Can you trust a copy trader on a social trading platform?
Social trading platforms like Bitget have strict requirements for people who want to be professional copy traders.
Professional traders need to have a verified trading account and be able to explain how they trade. They must have money in their account and have been trading on the site for at least a few months. The professional trader must follow the risk profile standards of the social trading platform. If the trader goes over that limit, the platform will usually put restrictions on his account.
Try to find a trader who has been in the business for at least a year. Even traders with little experience can sometimes make money for a few months. This is why it is best to copy a trader with a lot of experience.
Look for a mix of a good monthly return and trading with low risk.
Be realistic about what you want and look for a trader who consistently makes at least 5% every month. Be wary of a professional trader who promises huge profits, such as more than 100% per month. This trader might be using trading strategies that are risky.
Make sure the trader is not exactly the same as another trader. By looking at their profile, you can be sure of this. Check their transactions carefully to see if there are any strange things going on. Remember that you don’t need a high win rate. Even if a trader loses 50% of their trades, if their approach rules include a 4:1 risk to reward ratio (RTR), both their account and yours will go up.
Take your time to find a trader to copy if you want to make money by copy trading. Think about the long term for steady gains, and look at the trader’s trading history to make sure he or she continues to trade with low risk and high return.
Most traders find it hard, annoying, and confusing to trade any kind of financial instrument. There are different ways to trade, a wide range of techniques and signs, and the choice of which financial instrument to trade.
Copy trading is appealing because it cuts out the time and work needed to start a trading business.
Copy trading, on the other hand, doesn’t have to be passive.
Trading is a skill that can be taught, and even though most people fail at it, it is not hard to learn.
Most traders fail because they let their emotions get in the way. When we are in danger, our brains switch to a mode that helps us stay alive. The fight-or-flight response is set off by the amygdala response, which makes your brain go all mushy. This leads to trading on a whim, too much trading, chasing losses, trading for revenge, and bigger lot sizes.
But what if you hired a copy trader to help you learn how to trade like a pro?
We can learn a lot by seeing how other people handle things. So, if you want to be a professional trader, you need to learn everything that a professional trader does. Open the charts and look at where the trader got in and where they got out. Draw trendlines, lines of resistance or support, or anything else that fits the position of the chart.
This practise will help you get better at reading charts.
After a while, looking at a chart makes it easy to spot likely setups quickly.
You can use copy trading to make money on autopilot or to get better at trading. In reality, the second choice is better than the first because things change. Copy traders can leave the platform or stop sending out signals.
You might think that copy trading is a low-risk activity in which the risk is taken on by the expert trader. But this is not the case. Even when someone else does the business, there is always some risk.
Think about the following before you join a copy trade service:
Incorrect settings: If you change the signal settings inadvertently to a value that is too high or too low, it can cause problems and losses.
Risks of user interference: You say you’ll never do it, but then a few transactions end in a loss or a big fat profit, and you realise you have. You have left deals before they were finished. Keeping an eye on open transactions could be like a drug. Make it a habit to set your signal settings and then leave the room.
Failure to do your homework: As we’ve already said, you should do a lot of research on the professional trader. Make sure they are trading by hand and not using a bot to do it for them. Even though most sites don’t let you use bots, it’s still worth looking into. Also, make sure the trading account is real and not just a practise account.
Diversification is important for trading or investing success, but it’s not enough. Make sure that the trader has a wide range of assets and trades in many of them. When trading Forex, make sure that the trader isn’t buying and selling multiple pairs that move in the same direction at the same time. This increases the risk on your account.
Sudden changes in the market, like news stories, market crashes, and announcements about interest rates or unemployment, can affect prices and set off stop-outs in the same way they would if you were trading. Market risk should always be taken into account.
Copy traders come with risks, since the copy trader can end the service at any time.
They might change how they trade and start being more aggressive and taking more risks. The worst thing that could happen is that the broker sends a margin call to the duplicate trader.
Technical risks: If you want to copy trade, you should use a virtual private server (VPS). If you use your home internet, you could lose money if your WiFi goes out during a crucial trading session. There’s a chance that the trading platform won’t work or that your trading account won’t be able to connect to the copy trader account.
We are not trying to make people afraid. The risks that come with using a copy trading service are the same as those that come with any other type of trading. Before joining a copy trade business, it is important to think about the pros and cons.
Copy trading is a very easy thing to get started with..
Choose a CopyTrading broker like Bitget who’s legit and regulated and go check the copy traders on the platform and how successful they are.
Put money down, and don’t trade with money you can’t afford to lose.
Don’t risk next month’s house payment or money for your kids’ college.
Choose a copy trader. It may be hard to choose a copy trader because the Bitget platform have as many as 500 copy traders.
Choose whether you want to act like a scalper, a day trader, or a swing trader.
Once you’ve found a few traders you like, look closely at their copy trader profiles. Look at what they’ve done. What kind of crypto do they deal in? In each trade, how much risk do they take? What is their risk-to-reward ratio (RTR).
Choose traders with at least a 2:1 RTR, because it’s hard to stay ahead of gains with a 1:1 RTR.
Set up your copy trading signals and check, check, and check again to make sure your settings are correct. Errors may be quite expensive.
You are not required to change your stop-loss levels; you can do it if you want to. If you don’t understand how a stop loss works, give it to the copy trader.
Make sure you are clear about what you want, and don’t be greedy. Let the copy trader do what he does best, and your money will grow week after week. This way, your trading account will keep growing on its own.
Take your losses with a grain of salt, because even good traders sometimes lose. Losses might not always mean that a trader did something wrong. If a trader keeps losing for a while, you might decide to stop trading signals for a while and see if the trader gets better. Don’t give up after just one or two setbacks.
You can change your mind at any time. If you start copy trading but feel uneasy, you can stop the signals until you figure out what’s making you nervous. Don’t put money in the bank that you might need in the future. Trading anxiety is common, but it gets worse when you look over your open trades too often.
If you don’t like how the copy trader trades, you can stop getting the signals and follow a different trader. Trust what your gut tells you.
Have fun, because if you chose the right copy trader, they’ll do a great job for you.
Copy trading is not likely to make you rich, as we have shown. But with the right copy trading site, like Bitget, which has more than 5 million users, and a copy trader who is consistently successful, you could make money every month.
Is copy trading a good way to make money? You are the only one who can answer that question.
If you don’t have much time to learn how to trade, copy trading could be a good choice. If you have tried trading before and found it too hard or annoying, a copy trading service may be the answer.
The problem is finding the right copy trader, which could take some work.
Hundreds of skilled traders can be copied on a number of social trading platforms.
You can use a copy trading service to make money without doing anything or you can use a professional trader’s skills to improve your own.
Last but not least, have fun while copy trading. Never trade with money you can’t afford to lose, and always choose copy trading, which is low-risk.
Click here to register your Bitget account and start copying other traders