Forex Plugs master class

Copy Trading

Not Signed up for copy trading?, Register Here Now!

Copy trading, also known as social trading, is a way to automate your trading by copying the trades of other traders. It is often used by newbies that might not yet know how to trade, with the added benefit of helping to teach them on the way. For more experienced traders, it can enable them to step away from their screens if they need to, as all trades are automated.The goal of copy trading, like regular trading is to open positions on various financial markets including FX, CFDs on Stocks, Commodities, Indices and Cryptocurrencies, and then to close the position, hopefully once the value of the asset has moved higher. Although, much like trading for yourself, here you can also incur losses too.

This could be a good option for those who lack the time or experience to invest by themselves. For this reason many brokers offer the facility of copy trading. There are a variety of platforms offering copy trading services, and while some are manual, others are fully automated. This enables you to sit back and watch the action.

There are many advantages to copy trading, here we have covered just a few:

  • Allows first time traders to familiarise themselves with the financial markets and gain the confidence to trade
  • Helps new traders to learn how to trade, by watching the actions of other, sometimes more experienced traders.
  • Enables more experienced traders to take part in the market, even when they are too busy, and not able to invest the time and research they should normally devote to trading.
  • You can copy trade on various instruments including foreign exchange, stocks, commodities and more.
  • Creates a community of traders, beginners and experienced alike, who can exchange ideas, strategies and endeavour to improve their trades together.

Here are the steps you should take to copy trade.

  1. First, you will need to select a broker to partner up with. Choose a regulated broker like AvaTrade that offers you security, a wide selection of assets and customer support.
  2. Now its time to open an account on an automated platform. Here at AvaTrade, we offer well-known options like ZuluTrade and DupliTrade.
  3. Once your account is active, you will see a list of signal providers along with their stats. This usually includes P&L, and risk profile. Select the person/people that best suit your objectives.

Copy investing, or mirror trading became very popular with investors worldwide, mainly because many early adopters have had enormous success and were able to boost their trading skills and profitability with zero effort. Copy trading enables novice investors to do just that. They don’t need to know how to analyse the markets or how to interpret forex signals or indicators.

Novices are using other investors’ abilities and thus increasing their own success rates. Also, copy trading can be used by experienced traders too, as a way of learning new trading strategies from others, and by that, increasing their success in the online trading market.

If you would like to start investing in the stock market but do not have a lot of experience, or you are a seasoned pro who would like to gain insight into the analysis of others, using copy investing / mirror trading could be an excellent place for you to begin.

To begin we need to establish that there are two main types of traders, those who attend seminars, attempt to compile strategies, , and enjoy ‘expert-trading-fees’. Then you have the other group that want to make money with as little input and effort as possible. For the latter, mirror or copy trading was created and has suited many as the perfect solution.

The growth in the past 5 years of copy trading has been exponential, for its main reason is that many traders ‘trust’ this system, and have a comforting feeling that they are not trading alone. AvaTrade offers you popular signal providers that are the best in the business.

Copy trading is not only for the unexperienced, a lot of expert traders use copy trading as a means of market research, it saves time and could be part of a new strategy that could be implemented and profitable.

Forexplugs uses top quality sources for its copy trading. These parties include hedge funds, expert brokers, and money managers. This means that if you use copy or mirror trading with AvaTrade, you are essentially gaining valuable access to seasoned traders, allowing you to copy their trades and benefit from their experience.

Taking advantage of this trading strategy can be highly lucrative. In fact, many social traders, new and experienced, have had the opportunity to gain direct access to the top traders on the platform and have increased their trading success significantly.