What is Copy Trading?
Investing in various financial markets for new traders is no longer a problem, with new portfolio management techniques like copy trading that allow them to replicate successful trades and copy trader’s strategies without following the markets.?
Copy trading was born out of mirror trading in 2005, where traders used to copy algorithms that were developed through automated trading, and experienced traders could use copy trading as they may not have the time to spend hours analysing charts but are looking for ways to stay active in the market.?
Other than being a time-efficient alternative, copy trading offers many benefits, especially for beginner traders.?
Benefits of Copy Trading
How Did It Gain Popularity??
Due to the tremendous success of many early adopters who were able to increase their trading proficiency and profitability with little to no work, copy trading has gained a lot of traction among investors worldwide.??
By leveraging the expertise of other investors, copy traders can improve their success rate without the need to understand trading signals or indicators. Simultaneously, copy trading can be used by inexperienced traders as a way to learn and develop their own trading skills.?
领英推荐
How to Successfully Copy Trade??
Successful copy trading involves three key steps:??
Social Trading vs. Copy Trading?
Copy trading is a form of social trading, however there are still a few differences between both concepts.??
To start off, copy trading will link your account with another trading account so that all their positions will be automatically replicated into yours. If they make a profit, you win. If they lose capital, you lose. The key is that the entire process is automated, which is perfect for beginners who are not sure how to start.?
On the other hand, social trading is more communal and incorporates social media with investing.?These communities consist of traders who exchange and discuss strategies, all sharing a common goal: improving through interaction with like-minded individuals.?Some of the features of social trading would be message boards and chat rooms where you can share trades and discuss market analysis.?
*Disclaimer
This communication is for informational and educational purposes only and should not be construed as financial, investment, or legal advice. BitDelta does not guarantee the accuracy, completeness, or timeliness of the information provided. Users are advised to conduct their own research, exercise caution, and seek independent financial advice before making any trading decisions. BitDelta is not liable for any losses or damages arising from actions taken based on this communication.