As technology progresses, new innovations are seen in all fields including the financial world. You all know the popularity of platforms that enable social networking in various fields. The counterpart of social networking in the financial is called social trading or copy trading.
Copy trading facilitates the traders to copy and manage the positions in the market. It is more helpful than social trading since it does not just depend on the information provided by other traders but on their actions as well.
Of late, there exist numerous copy-trading platforms that aid you in copying the actions of other traders with the help of an automated system. Here, a portion of your portfolio would be connected to the portfolio of your chosen traders. All their opened trades are copied to your account, the result of which is an automatic copy of their actions to your account.
The automatic copying helps you save time since you do not need to monitor the market continuously. In this trading the movements of other traders are exactly copied in real time without any gap or lag. Many automatic copy trading platforms have tailored stop-loss settings to protect against the losses due to the movement of traders.
Copy or social trading is more useful than other platforms for trading and investing as it provides numerous ways to earn handsome money via social trading. It is one of the most advanced binary option trading software platforms at present as it facilitates to make profits by just copying the successful investors. Automatic
Since the success rate is very high, many people assume that copyop social trading is a scam. It is easy to fall for such assumptions, particularly if you are new to trading. But, it is not a scam and is atrusted online trading platform; this becomes more apparent as you get familiar with the working mechanism of copy trading.
How does copy trading work?
If you have newly entered the trading market, it is not recommended to invest your money blindly as most often it leads to lossof money. On the contrary, if you have an option to copy the actions of successful traders in the market it will assure profits despite your knowledge of existing market. Other investment criteria like diversifying the investment and managing portfolio should also followed while copying others.
Normally you can invest up to 20 per cent of your equity on one trader. There is a minimum trading amount to copy other traders. So, make sure you know the minimum trade amount or project average sum before copying. You can choose more traders to copy their actions to boost your earnings.
If you choose the prosperous traders in the market to copy, you need not do anything. Copyop social trading automatically copies all trading signals. What more? You can allow other investors to copy you, andevery time someone copies your trades, you earn extra money.
Copy trading in Commodity market
Commodity market is crucial for any nation as it has a significant impact on both the country as a whole and individual people. The importance of commodity trading can be seen throughout the history. Undervaluation or overvaluations influence the country’s economy hugely. This effect is clearly visible with trading of energy commodities now-a-days.
Many traders enter the commodities market to make profits by turning the opportunities to their favor. In this scenario, can copy trading be helpful for the commodity traders.
Does copy trading work for commodity traders? Of course, it does: Since copy trading allows you copy the actions of fruitful investors automatically from all over the world, you can use this technique for any of the material you want to trade. You can trade with stock, currency and commodities if you follow certain measures.
How to choose an appropriate trading platform?
Choosing a good copy trading platform can be very crucial in your success in market. When starting, it is safer to stick to reputed copy trading platforms that fit all your needs. Make sure your platform has a “pause and resume” option while copying the traders in the event of losses so that you can minimize your loss.
Use platforms that provide a demo account. Make sure you use their demo account so that you get a better idea various options before using it in full throttle. You can also learn about minimum analysis with demo accounts. Do not switch to real account till you earn some profits on this account.
Always choose and follow multiple traders. This helps you in averaging your investment returns. However, avoid following all the top traders blindly.
Copy trading is simple and takes a lot to go wrong, but you still need to be watchful of every step, and wait for some time with which you can learn basic skills and win in the market. Following some basic guidelines will keep you safe in the market at the beginning. As you understand the ins and outs of the trade, you can begin investing with more confidence, and with enough experience you will quickly shift from a beginner to a trader that others start copying.