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Set Your Own Direction or Copy the Transactions of Successful Forex Traders?

November 20, 2019 by

The following post is a paid advertisement. The content was provided by the advertiser.

If you expect trading in the foreign exchange market to be easy, you are setting yourself up for disappointment. It is not because you must have a winning strategy or you need $1 million to make a passive income for life. It is not that. The difficulty of the Forex market lies in price behavior. You must invest time to understand the market structure and why the prices move in one way or the other. Sometimes, it is impossible to predict currency price movements.

Given that the smallest trading mistake can kill your profits. Is it better to make your own mistakes or copy the financial transactions of successful traders and benefit from their skill and expertise? If you want to take part in the financial markets and limit your potential losses, you should give copy trading a go. your trades will be executed experienced and seasoned Forex traders. You cannot lose.

How does copy trading work?

The trading mechanism is relatively simple. You copy real-time Forex trades of a live investor. What is more, you set aside a certain amount of money and the trades are realized using that allocation in the same proportion as the Forex trader. If the investor utilizes only 5% of their balance to make a stock trade, your account will imitate this action. everything takes place in the context of a social trading network.

Basically, you do not rely on the information offered by other traders but on their actions. All of their actions are copied into your account. You do not need a lot of money to get started, which is great news. You can start making a profit with small capital. If you have $200, it is more than enough. You may want to take a close look at this list of the best copy trading platforms according to InvestinGoal:

  • ZuluTrade
  • eToro
  • Darwinex

Make sure the online platform you choose provides powerful copy trading tools and has a user-friendly interface. eToro is generally seen as the best place to find Forex brokers to copy.

The possible downsides of copying a Forex trader

Johan Cruyff once said that “it is better to go down with your own vision than with someone else’s”. The legendary football players wanted to say that you should not be fearful of making mistakes. Copying a Forex trader, even if they are extraordinary, can have negative consequences. FX traders are humans, so they are prone to making mistakes. Even the best of the best misinterpret price actions and lose a trade. Do not have unrealistic expectations.

If you begin copying trades, you risk becoming lazy. More precisely, you do not do things in the proper manner. Being lazy could get you broke. The point is that there is nothing wrong with copy trading. It is just that you should not transform this strategy into a permanent one. This strategy works for now because you are new to the game. Nevertheless, make changes in the future. Switch up your trading strategies.

Find the best Forex broker to copy

There has never been a better time to be an investor Competition is fierce, besides the fact that costs are coming down. But how are you supposed to know how to distinguish between the traders who know what they are doing from those who enjoy short-term luck. Well, you can start by checking out popular profiles and stats. Take a close look at the number of copiers, the news feed activity, not to mention the personal portfolio.

Equally important is to be cautious. If the numbers look perfect, they are most likely the opposite. The reason for this is that there is no perfection as far as buying and selling currency is concerned. What you are interested in is long-term profitability, so do not be deceived into thinking that it is possible to trade consistently and do things perfectly. Be alarmed if you see impressive numbers.

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