Copy Trading is fast gaining momentum with investors – it is a fantastic amalgamation of Forex trading, portfolio management and social networking – and obviously if the trader you handpick does nicely, so will you – simple as that! And if your trader is not doing so well – you switch.
#1. It is imperative that you know how to trade as Forex and currency has a propensity of being complicated. Furthermore the markets are driven by numerous factors. The markets can also experience sudden fluctuations and moves which are measured by many technical indicators to forecast future moves. Moves are netted by trading with real currency on projected points such as currency futures, spot Forex as well as CFD’s. Be warned that these fiscal products are extremely leveraged and can clean out the largest account or else offer unlimited returns.
#2. Not all platforms are born equal. Usually the features differ – additionally they don’t back the same brokers and don’t all have the capabilities to implement auto-trades. Do your homework well before diving in.
#3. Top websites usually have a setting where traders are able to associate with each other. They also have leader boards; alternatively they will have a couple of ways of checking out a couple of possibilities to follow.
#4. So the big question here is – how exactly do Social Trading platforms make any money? After all, it is usually free to sign up! The answer is quite straightforward, really. Social trading platforms have partnerships with brokers and every time the website generates a trade with one of its supported brokers, they get paid! High-quality traders are attracted to these Copy Trading platforms by sharing in their profits. Always be on the lookout for scam artists, though.
#5. Being in the loop and keeping your finger on the pulse is all-important. Know the trader you are following so do your homework really, really carefully at all times.
#6. Copy trading is as vibrant as other trading that is why it is important to check on your accounts every day; keep your eye on the ball at all times – after all it’s your money others are investing in.
It is imperative that investors are disciplined about Copy Trading and must critically review their investments to keep them up to date and the proverbial finger on the pulse at all times.