If you haven’t been through some serious trading activities with either Cryptocurrency or Forex yet, you might have this notion that “online trading has a lot of deep analysis requirements that you need to get by.” Hate the idea for what it truly is, but that’s just a reality for a market trader. You can’t get rich with the art of trading or investing without getting through the mental processing needed to be successful at it.
But is the act of investing in digital cash really that difficult? Must a novice trading enthusiast really have to go through all the seemingly unbearable difficulties? With all seriousness, all expert traders will really say yes. That’s just the best way to answer it.
But what if you want to take the easy way? Isn’t there a much more convenient set of methods that can give you profit with online trading without experiencing extreme hardships? Thankfully for you, and for all those aspirants who want to take the easy path, here’s a solution that might just revolutionize the way you deal with trading forever.
How copy-trading really works
Because currency trading has been around for nearly 50 years already, many successful individuals are already very well-versed in it. As such, many of them are so good at what they do that failure is almost an impossibility whenever they conduct trading acts on any given day of their profitable lives. In that case, wouldn’t it be best for the enthusiasts to mimic what they’re exactly doing?
The best approach for that would be to study what they’re doing: read writings about them, or watch videos of them as they perform such actions. After having some comprehension, we would then take some actions based on what we’ve learned. Amazingly though, that’s not what copy-trading is all about – it’s actually employing an automated system that imitates exactly what those expert traders are actually doing.
To simplify it further, we’re talking about a computerized procedure that will facilitate the linking of your account with that of the trader whose actions you want to copy. Whatever are the outcomes of that person’s choices and decisions, so will be the outcome of your account.
But there is actually a catch with that technique. By doing copy-trading, a small portion of our profit will be directed to that trader you’re linked with. You are benefiting from his actions, it would be unfair for you to just take profits without paying anything to the one who does all the action. It just seems justifiable for the system to work that way.
Copy-trading is closely related to mirror-trading. It works basically as something that would pop into your mind if you’d think about mirroring. It means that that the actions that will happen within your account is a duplicate of someone else’s. Both copy trading and mirror trading are components of a system called “social trading” – a system that takes advantage of the network of traders that are actively participating in the realm of currency exchange.
With the accumulated knowledge gathered from the network, any trading aspirant can greatly benefit from tapping into an array of benefits. It started as a trend in 2005 and since then, it has been a favorite thing for aspiring traders. The fact that people are attaining some success with it should make us think that it must have some reasons that make it so attractive:
Advantages of copy-trading
There is very little effort that you need to pour into it.
You just set the amount you want to trade, and wait for the expert trader you’re copying to make a profit for both of you.
You are gaining earnings with trading, but are also able to do your daily chores in life
But you have to take heed to the following too.
Disadvantages of copy-trading
It has lesser returns on investment
An expert trader’s failure will be your failure too (Yes, they fail at times too, though such failures are dependent on their reputation so you can just look them up and make your decision of copying them.)
You will learn very little compared to the actual trading, which means becoming an expert is something you’ll never be.
If you want to hop into the ease and comfort that copy-trading can offer, here are 2 good platforms you should check out:
Etoro – A trading company established in Israel. Founded in 2007, it has been one of the most profitable firms in the field of trading having accumulated an estimated total value of $800 within its 2-decade operation. Israel is a country known for its successful startups and sophisticated technological breakthroughs, which makes it easier for us to put our trust in Etoro.
Zulutrade – Also founded in the same year as Etoro, it is a Greek-managed company that’s declared by Daily Telegraph as one of “The Best 100 Startups” in the category of Finance and E-commerce. One of its most notable features is ZuluGuard, a system that automatically you to unfollow a certain trading act if something changes with the acts of the trader you’re copying.
So mirror-trading and copy-trading work basically the same. What is the notable difference between the 2? The simplest answer to the question would be this: That the former is better suited for those who want to have bigger volumes of profit, while the latter is more applicable for those who want to have smaller incomes.
Mirroring works best with higher capitals because it is often related to major trading entities. Copy-trading works within the framework of one individual trader to another. This can give us the understanding that it is most suited for small trading investments. So as a beginner and as someone who has only a small amount at your disposal, copy-trading might just be the best option for you.
Does copy-trading really work? Yes, it really does. In fact, most experts have the estimate of a 10% profit that one can attain yearly, which shouldn’t be so bad for someone who doesn’t want to invest in a huge amount of time with trading on a daily basis.
