Everyone wants to be wealthy, and they use various methods to achieve their goals. The ability to profit directly from changes in a single market is made possible by having a wide range of opportunities to make money through various sources. However, this also presents a pretty useful opportunity for diversification.
For instance, if you primarily trade FX, you might benefit from copy traders that specializes in crypto CFDs or stocks. It is impossible to monitor all relevant markets at all times, but copy trading can help fill that gap.
Whatever market is being traded, keep in mind that you retain complete control over your account and can place manual trades alongside any trades generated by the master trader. You can also change your risk preferences at any time, as well as modify or close existing positions placed by the master trader. Keep in mind, though, that too much manual work can defeat the purpose of copy trading and make it hard to track how the master trade is doing.
The Minimum Amount Required For A Copy Trader:
There is no minimum investment required to begin copy trading. You can begin with as little as $100, though you may find that your options are limited with that amount of money.
If you start with a small amount, you may want to limit your choice of signal providers to one, as you will quickly exhaust your margin. It should be noted that some signal providers require a minimum investment amount to ensure that the trades are completed for the copier.
Is Prior Trading Experience Required To Start Copy Trading?
One of the most significant advantages of copy trading is that no prior trading experience is required. However, it is recommended that you first learn the fundamentals of trading.
After opening an account and linking it to the copy trading platform, you’ll understand why copy trading is so appealing to beginners.
To increase your chances of long-term success, make an effort to stay educated in the markets and understand the risks involved, as well as the various risk parameters that can be adjusted before following someone else’s trades.
How To Find Successful Traders To Copy?
eToro will give you some basic performance stats to help you choose the best traders to copy. However, keep in mind that past performance is no guarantee of future results, and even the best strategy can fail due to changing market conditions.
Trust is an important factor to consider when selecting a signal provider. Examining their bio page before agreeing to copy their trades is a wise decision, as it displays information such as their trading background, strategy, and key metrics such as returns and realized P/L, as well as how many people are copying their trades and their most recent performance.
Remember that you have complete control over your finances. You will only agree to copy their trades with YOUR CHOICE of trade size, not to send funds to the signal provider to trade with.
Another useful approach is to narrow the list of traders you are interested in and track their progress over time to fully understand their results concerning their approach.
For instance, their percentage return may not be the best metric to monitor because the trader may have suffered a significant loss. Finally, the decision about who to copy will come down to your risk tolerance and whether you prefer a rollercoaster ride or stability. Examine the performance of our signal providers and our top traders.
Another advantage is that you can copy multiple signal providers at the same time; putting all of your money into a single provider can be risky, so diversification is recommended.
etoro Copy Trading:
Several online platforms allow you to engage in copy trading. However, eToro dominates this market. There are over 13 million copy traders on eToro, though not all of them have signed up for the copy trading feature. However, there are tens of thousands of them, which means you have plenty of options.
You can get started with a $200 minimum investment. The platform accepts traditional payment methods such as debit/credit cards, e-wallets, and bank transfers. Forex, stocks, ETFs, cryptocurrencies, and CFDs via hard metals, energy, and interest rates are among the assets supported. Like any well-known international broker, eToro is heavily regulated by numerous regulators, such as CySec in Cyprus, the FCA in the United Kingdom, ASIC in Australia, and FinCEN (Financial Crimes Enforcement Network) in the United States. eToro is one of the few reputable brokers that has gained acceptance in the United States.