Copy trading is popular amongst both beginner and experienced traders alike, with many promoting copy trading as a way to earn easy profits. This is because you don’t need to spend your precious time learning about the markets or watching graphs.
Does Copy Trading Work? Trading can be complex and learning how to copy trade is an excellent way of learning how to trade effectively. However, it is not an easy route to earning a passive income as you still need to have your wits about you and learn not to blindly trust advice. However, it will teach you how successful people use their knowledge to trade successfully so you can apply it too.
Is It Effective?
Trading stocks is a common way to make money, but it can be notoriously time consuming. It often takes a lot of practice (and a few losses) before you begin to see a consistent profit from trading.
Copy trading is promoted as an alternative to traditional trading, allowing for a more hands-off approach.
What Is Copy Trading?
As the name suggests, this form of trading involves copying the actions of a more experienced trader. You choose an expert trader and then benefit from their experience and knowledge, mimicking their trading movements.
There are a few different types of services to choose from. For example, you can use a signal service which sends you alerts when your selected trader makes trading actions, or you can opt for an automated service such as an automated trade bot which performs the trades on your behalf.
Traditional trading often requires years of research to become established and to begin making a profit. If you want to be successful with traditional trading, you’ll need to learn to understand the markets and carefully watch trading graphs to work out what trading actions to take and when.
Copy trading is a great way to get started with trading as a novice, without needing to spend months or even years building up experience.
It is also popular with people who don’t have the time to commit to traditional trading. When you mimic the trading actions of an expert trader, you can avoid having to watch the graphs and make those snap decisions.
Can You Make Money With This Technique?
The simple answer is yes – you can. However, like any type of trading, profits are not guaranteed and it’s important to remember that you may make a loss.
The amount that you’ll make from will depend on the amount that you invest and the service that you choose to use. Choose the right platform and you’ll have a good chance of making a profit each month. However, choose the wrong service and you risk making a loss.
Unfortunately, there are many traders out there who are regularly making a loss. If you choose to follow one of these traders and you’ll also replicate their losses. The secret to success is knowing which traders to mimic and the right services to use.
So please bear in mind that this can be a very effective method of trading, allowing you to venture into new markets that you wouldn’t otherwise have considered trading in. It can also save you valuable time as you know that an experienced trader is watching the graphs on your behalf.
Effective trading relies on you choosing the right trader to copy and selecting the right service to trade through. This requires a lot of research and can involve some trial and error, which can inevitably be costly.
I’ve spent over a decade testing and reviewing various services to separate the scams from genuine investment opportunities. I’ve made the mistakes so that you don’t have to.
Is Copy Trading Legal?
Copy trading is legal in most countries and there are many different services on the market. It’s important to make sure that the service you choose is properly regulated to ensure that your money is being legitimately invested. The best way to do this is to read my guide to the top three copy trading services before you make your decision.
How Do Copy Traders Make Money?
Trading in this way involves mimicking the trading actions of an experienced trader. When they make gains, so will you. However, it’s important to remember that you’ll also replicate their losses. Copy traders make money in the same way as any other trader, they just save time by not needing to study graphs, instead of relying on the successes of the trader being copied.
Is It A Good Idea?
If you’re new to trading, or if you don’t have time to research and study graphs, then this could be a good way to begin trading. When you begin you’ll be mimicking the trading actions of an experienced trader. This means you’ll be replicating both their successes and losses.
Although copying is a great way to get started with trading, it’s important to remember that like any type of trading, profits are not guaranteed and you may make a loss.
Find The Best Copy Trading Services
If you’re ready to give it a try, my guide to the top three copy trading services is a great place to start. You’ll find my honest reviews of each platform, including both the positives and the negatives of each, to help you to make an informed choice about the right service for you.
I’m Jon, owner of Trade Wise at https://tradewise.community/ and https://www.youtube.com/channel/UC7VmOx8DbvX4Rbrac2pPcjw
I review forex and crypto trading products and services to find the best of what’s out there for creating a passive income without becoming a full-time trader.