In almost every aspect of life, there will be people that perform above the average. This is due to some factors like focus, dedication, and many others. And something common to do is copy their performance in order to copy their success too. Often this works like a charm and will help you in many different ways. That’s why today I’m talking about what is copy trading and the benefits it can have for you.
By now, you must have a list of traders or investors you consider as “good”. Mostly in social media people tend to share their trades, profits, and losses a lot. I bet you have asked yourself, “how do they do it?”. This is when copy trading comes to play, imagine copying trades of your favorite traders and being able to dissect and check everything. To reverse engineer trade and see exactly what did he do and how.
But, before getting started all you need to do is a broker that allows copy trading, there are a bunch out there. If you are in Australia, I recommend you to take a look at etoro review Australia. After that, all you need is to know the basics, let’s start.
Copy trading is a method that let retail traders in the financial market copy positions opened by other traders. You just need to decide the amount of money to invest and copy the trade automatically in real-time. When the trader you choose makes a trade, you will open the same position as well. This should not be mistaken with mirror trading, which is a procedure that the main goal is to let you copy an exact strategy. Both terms can resemble each other, but they are quite different.
The biggest difference between copy trading and mirror trading is that copy trading’s goal is to automatically copy a position and mirror trading focus on copying an exact strategy.
It’s pretty simple, all you need to do now is read a how to copy trade on etoro (or any other broker) guide to get started.
You can start doing copy trading on your own or using a copy platform. Most of them allow you to select an activity to copy and make trades for you. Positions are opened automatically. As you can see, there are very few things you can do here besides checking if there’s enough money to cover the activities
The key here is to choose a pro-trader that matches your trading style and goals and follow him. For example, if you trade futures, and you are a conservative trader, then you’d copy a trader that trades futures and is conservative. This way you can get a lot of valuable insight to apply on your own.