The rise of worldwide automation can no longer be ignored, and it is undeniable that one of the major fields that have flourished due to this progress is trading. Trading in FX, Stocks, CFDs, Indices, Commodities, and Cryptocurrencies has become a common practice nowadays for people to fill their pockets with some extra money. Of course, some professional traders make a business from trading regularly as the main job but for those who have recently joined trading and only treat it as a side job, it would be difficult for them to learn the workings and norms of trading in the beginning. So the quickest way is to follow in someone’s footsteps. It is just like how a student copies the step-by-step procedure and learns from their master. In the same way, when a newbie in trading starts copying the moves of other traders, it is called Copy trading. It does not mean that copy trading India cannot necessarily be always used by new traders.
To define it more clearly in technical terms, we can say that Copy Trading enables traders in the financial markets to automatically copy positions opened and managed by a selected investor, usually in the context of a social trading network. But do remember not to confuse copy trading with mirror trading. Unlike Mirror Trading, a method that allows traders to copy specific strategies, Copy Trading links a portion of the copying trader’s funds to the account of the copied investor. Any trading action made thenceforth by the copied investor such as opening a position assigning stop loss and taking profit orders, or closing a position, is also executed in the copying trader’s account according to the proportion between the copied investor’s account and the copying trader’s allotted copy trading funds.
The copying trader usually retains the ability to disconnect copied trades and manage them themselves. They can also close the copy relationship altogether. Copy Trading has led to the development of a new type of investment portfolio, which some industry insiders call “People-Based” portfolios.
Advantages of copy trading
If you have asked yourself why you should use copy trading, we can list you some of the benefits that it can provide you.
You no longer need to learn about different trading methods, you can simply rely on the tested strategies and copy them automatically.
No more waste of time with market analysis. You can save the time you would have spent analyzing and monitoring the markets and use it wisely, for spending more time with your family and friends or whatever other things you prefer.
You can effectively remove emotion and guesswork from trading, eliminating fears and greed as issues that harm the prospects of profitability.
Professional Traders work for you. Without losing full control of your money and investments.
You can be profitable from the very first day. Even if you have no time to study the market in detail, you are still able to participate in it.
Capitalise on opportunities 24 hours, 5 days a week.
- Enjoy advanced risk management options, since you can build your own personal hedge funds by choosing from our strategies and determine the account and fund allocation for each of those strategies.
Regardless of how you spend your time, you can rest assured that your money is constantly working for you. All you need to do is choose the preferred trading strategies and your risk.
You don’t need to develop or optimize a profitable system. You can just find it and choose the best one for you.
Copy Trading allows you to focus on improving your own strategies and money management rules or just enjoy your life and forget about trading.
How to Copy Trade
Copy Trade isn’t very difficult. To get started on Copy Trading, you can just follow the below guide given step-by-step:
- Firstly, you would need the most important thing that plays a major role in trading. That is a broker. You have to select a broker to partner with that is reliable and secure. You can go for a regulated broker like AvaTrade which offers a wide selection of assets and customer support.
- Secondly, you have to open and set up an account on an automated platform. Choosing AvaTrade is more advised as it has options like ZuluTrade and Dupli Trade to trade according to your convenience.
- When you are set with an account and it is active, you can find a list of signal providers along with their stats including P&L and risk profile. From there you can select the person/trader that you think suits you best.
Who Provides the Trading Signals?
If you search, you will find a herd of results showing platforms you provide trading signals. but, it is not entirely necessary that they are all accurate and authentic. Since your trade strategies depend on these trading signals, you need them to be correct. You cannot risk your investment on inaccurate trade readings or signals that are provided by unknown or just any site. That is why it is highly advised to use Avatrade as your trading partner as it offers security and authenticity. We can assure you that Avatrade uses top-quality sources to provide you with information for its copy trading. These include expert brokers, money managers, and hedge funds. AvaTrade enables you to gain access to seasoned traders and allows you to copy their trades.