Copy Trading: Trade like a Pro Trader
Today, with a plethora of online brokers, trading platforms, and moneymaking opportunities, it has become much easier to enter the market and get your feet wet in the trading world. You just need to know the right way to begin. For a newbie who is looking to expand their portfolio, forex trading is the best bet. Want to know more? Keep reading.
Copy Trading: The Basics
Copy trading is a convenient and popular method of forex trading that is especially great for new traders. Just as the name suggests, it allows you to directly copy the trade activities of other expert traders with seamless precision and timing. Therefore, it is the easiest way to get on with your journey of forex trading as you learn from the best industry specialists while making good money.
All you need to do is decide the investment amount, and everything else is copied in real-time. You are potentially earning money based on other people’s skills! However, this doesn’t mean you’ll be losing all control.
With copy trading, you can make informed decisions on who to copy trades from by analyzing traders’ statistics, performance, and strategies. Moreover, you can re-distribute your allocation to various traders based on the principle of diversification and open and close trades whenever you want.
How to Copy Trade?
Here’s a step-to-step guide to copy trading.
- Partner up with a reputed broker that offers you security, customer support, and a wide variety of assets to choose from.
- Get yourself registered and create a live trading account on an automated platform. At VFM Brokers, we offer trading platforms like MetaTrader4 and VFM Copy Trader.
- Once your account is active, you will get to choose from a list of traders. You can see their trade stats and choose the person/people best suited for your goals according to your risk profile.
- Now it’s time to decide on an investment amount and how will you allocate it among different managers. It’s best to keep your portfolio diversified and not invest the whole amount in a single trader.
- The copy trading platform will automatically replicate the activities of the selected traders in your trading account.
- If you like how a particular trader is handling your money, you can add more funds. Here, you will invest while the trade is being copied so that your profits increase in case it is successful. However, if it is a losing trade, the losses will also be bigger.
- Lastly, share a percentage of the profit with the strategy manager.