Copy trading is a way for investors to follow in the footsteps of experienced and reputable traders. These traders are aggregated from various brokerage platforms where their trading portfolios are among the top rated ones. Despite it being one of the most popular ways of trading available today, there are many people who are still on the fence about their decision.
Are you really going to benefit from copy trading as an investor? Should you pick some other way of investing your hard earned money? Of course, these are all great questions to ask and prove that you want to be cautious with how you use your money. So, here are 4 reasons to prove that copy trading makes investment easy.
It Automates the Trading Process
It’s the modern world and automation is becoming a part of many things. Trading is not exception and you can now set up your trading platform to do the trading on your behalf automatically. The best part about copy trading is that it doesn’t automate things in such a way that you would lose control of your trading portfolio. In fact, you can still maintain full control and trade the way you want. For example, you have full control of the traders you pick and follow. However, when they enter a trade, your account also mimics the same trade because you are copying the trades.
You can decide the type of trader you want to copy. The trader you pick is your choice and their trading style can always be aligned with how you want to trade. You can always sift through traders based on their trading portfolios, method of trading, and the success rate they have had with their trades. Once you have connected to your favorite trader, an automatic trade opens from your account when your chosen trader trades.
Many Assets Available for Trading
When you trade on a copy trading platform, you can connect to any traders you want and even switch between them when you wish to. The most important thing here is that you can always look at the assets that they are most interested in them. In a way, you can decide which markets you want to invest in. Are you interested in trading cryptocurrencies? Do you prefer forex trading on currency pairs? Or perhaps, you are more interested in conventional assets like stocks and indices? Whatever preferences you have, you can always pick the trader that invests in the markets you are most interested in.
It also opens doors for diversification, something that’s not available to you when you trade on your own. See, when you trade on your own, you can only specialize in so many assets. Learning all the markets takes time but you don’t have to do that when you go with the method of copy trading. Copy trading allows you to pick traders who might be investing in a variety of markets. If you have heard about trading signals before then the idea here is similar to that of trading signals. If you want to go beyond the American markets and try some indices from the European regions, you can do that by picking a trader that invests in those markets. It’s as simple as that.
You Rely on Experienced Traders
How would you know the trader you are about to pick is good at what they do? Can you rely on them to make you money in the form of profits? Will they profit on their trades? What if they keep losing trades and you end up losing your investment too? Well, that’s where copy trading starts to make sense. You don’t get access to just any traders. A copy trading platform takes the best traders from many brokers and puts them in one place so you can pick the one you like the most. These traders are picked based on their trading portfolios and experiences.
You are not relying on new traders. You are relying on the best of them all. They have been trading for years and their portfolios show a great success rate with their trades as well. These are people who have so much control and understanding of trading that they can set up their platforms to trade on their behalf. That’s correct! These traders have their trading set on autopilot. Don’t worry about it because it’s an option available to them from the platform they are on. Automated trading helps them trade fast and execute many orders within a few minutes, thus helping you make outcomes at a fast pace.
You Can Learn while Trading
One of the things that wasn’t so great about copy trading just a few years ago was that people couldn’t interact. You followed a trader’s trades but you couldn’t talk to them. You just notice how they are trading and copy the trades. In fact, once you have set up the platform to copy trade, they are automatically executed on your behalf. What is there to learn? You just watch someone trade and your trades being completed without your involvement? Is there any learning in that? Well, modern platforms are great in breaking that wall and letting you interact with traders.
You can interact with traders to talk to them about their trading strategies. The best thing is that you can ask them questions and learn from them. If a certain strategy they are using is so successful, you can ask them how they developed it and how they make it work. This level of transparency in modern copy trading has made it one of the most favorite ways of trading for investors from around the world.
All the big challenges that most traders face when they invest for the first time are taken care of by copy trading. The best part is that you don’t even have to make any huge investments. The monthly fee you pay for the platform is pretty affordable. The convenience comes from the fact that you can continue to use your broker’s platform when you sign up with a copy trading platform. If you are interested in investing, you should definitely consider giving copy trading a shot.