What does it mean when we say copy trading?
From the word itself, we can already know if what is it all about, to copy the trade of an expert trader.
Is this legit?
Yes, there are exchanges wherein copy trading is available. I am not promoting any kind of exchange here, so I won't drop any.
Why do people do copy trading?
Usually people who copy trade are those who do not have any trading experiences since this will also help them in learning how to trade.
Copy trading is really a pure passive income. The only thing that you need to do is to make an account, deposit your money you want to invest then set up your account.
Who to choose when you want to copy trade?
Of course, your main reason if why you engage in copy trading is to gain. So choose the person whom you know, will give you high profits.
Usually, the exchanges who allows copy trading let us see the trading performances of the traders who allowed themselves to be copied.
Are their profits consistent or their are more losing trades rather than winning trades. Choose a trader who makes sure that their are more winning trades rather than losing trades.
Consider also on how long does it take for them to close their trades.
It is better to copy a trader whom you really know personally. Lucky are those people who knows someone who is an expert trader. When you know them personally, and you know what kind of person are they, you will already weigh if is it okay to copy them. You may feel safe once the one you are copying is you know personally.
Pro's and cons
In every thing that we do, risk is always present. It is only the person on how he / she will take responsibilities.
Pros in Copy Trading
You do not need extra effort on how to earn because you will already earn just by copying someone who is skilled in trading.
Their profits, will also be their profits, well it will now only depend in your capital. Because some copy trading will make you choose if you will copy them if it will be "in proportionate in your account"
Passive Income. You will no longer be stressed when it comes to gaining money.
Cons in Copy Trading
Trading is not always about winning. Either you will lose, you will earn. So better check the profitability chart of that someone who want to copy. No one can really predict the market. Even experts trader has failures sometimes in making video.
Paying commission fees. Of course, in everything that we do, there will always be an exchange. It is a give and take process. The expert trader gives you passive income but in return, the copy trader asks for fees. There are traders who only charges copiers with low percentage but others ranges from 20% to 35% of the profit earned.
Is it advisable to do copy trading?
Copy trading is legit, however just be very careful in looking for someone whom you want to copy. The more people who copy a trader, the more we know that the trader is a good / excellent trader.
It will always depend on the person in which does he / she wants to do. Your money, your rule.
If in trading, there is always something like TAYOR and DYOR, which means Trade at Your Own Risk and Do Your Own Research.
In copy trading, there is also "COPY AT YOUR OWN RISK"
If you lose money just by copying a trader, do not blame him / her because in the first place, you let him / her copy every trades that he / she makes.
If you still have no idea about trading, and you want to earn, why not choose copy trading first and when you already learn about it, you will now trade on yourself.
I, myself is a copy trader. I made an article about it already. You may read this one if you just want to.