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How To Choose The Best Traders To Copy

  • Trading cryptocurrencies has been popular probably ever since the 2017 bubble. During that time, Bitcoin’s price increased twentyfold, from about 1,000 dollars to almost 20,000 in less than a year. Several other cryptocurrencies made even higher profits, which gave many uninformed people the misconception that it is easy to make money from cryptocurrencies. TradeWise is not authorised or regulated by the Financial Conduct Authority. Information on this Website is provided for general information purposes only and should not be relied upon by you.

    How to choose a trader to copy

    For other traders, copy trading is a great way to stay active in a market when they don’t have the time to commit to trading themselves. I’ve put it all together in my guide to the top 3 rated copy trading services to help you to make an informed decision when it comes to which copy trading platform is right for you. Type of service – As we’ve already discussed, there are a few different types of copy trading service available. These include signal services which send you an alert whenever your selected trader makes a trade or fully automated services which act automatically on your behalf.

    Is Copy Trading On Etoro Profitable?

    You’ll no longer be able to adjust the stop-loss to 30% as you’ve already reached this level, meaning it would entirely close this copy relationship. EToro automatically applies a 40% stop-loss to each copy relationship, terminating the relationship if it reaches this amount and then returning any remaining funds to you. So for example, if you invested $1,000 and the value fell to $600 (down by 40%), all the positions in that copy relationship would be closed. This gives you exposure to a range of assets in one go, depending on the investment decisions of the trader you decide to copy. This trader’s performance has been rocky over the past year throughout the periods of market volatility and uncertainty, with returns of -29.20% as of July 2022.

    How to choose a trader to copy

    You may plan to diversify your investment portfolio in the future so consider the product range as it could make it easier to expand your portfolio when the time is right to do so. This can include Forex, Commodities, Cryptocurrency, Stocks, Indices, Options, ETFs, CFDs and Futures. Being a social trading platform the community many times helps each other out by signalling their opinion about investors. The number of copiers a CopyTrader has is quite indicative of how much people trust them, especially if it is a long-term relationship that persisted over time.

    Social Trading : How To Choose The Best Traders To Copy

    Now you are set to start searching for your ideal social trader to follow. More so, examine how they behave, especially during or after a bad run. When someone is winning, it is easy for them to stay calm and maintain communication since they speak for themselves. During a losing streak, however, that’s when a professional’s trader’s best qualities manifest. The site may also ask you a few questions about CFD trading and leverage to assess whether you’re ready to have access to these complex instruments.

    After all, you may not be familiar with some trades or not interested in following all of them. With copy trading, however, you can slowly but surely make your way into the market, for instance, by copying only one trade. Social trading platforms do not have stores that you can go to; they are online enterprises. As such, it is inevitable that they are licensed and regulated to provide security. Technically, copy trading is nothing more than a certain form of investment. You can take all the information that you need for a specific trade from the comment section.

    Investment of any kind carries a high level of risk, and CFD, Crypto, Forex, Gold or any other precious metals investment may not be suitable for all investors. Certain types of investing offer a high degree of leverage, which can work against you as well as for you. Before deciding to carry out any kind of investing you should seriously and carefully consider your investment objectives, level of experience, and appetite for risk.

    Some users may need more specific statistics compared to others who might just want to see the overall profits and drawdowns. You may also require a specific tool that is important to enhance your personal social trading experience. The more trading tools available, the more comprehensive the overall copy trading experience can be. The majority of social trading platforms will charge a fee to either the signal provider, follower or both.

    For example, copy traders can profit from the market without having to spend much time on analysis. After you have found the trader to copy, everything else is automated. There are many different copy trading platforms available, for different kinds of markets. As we discussed, there are numerous strategies in copy trading. You can copy trend-following traders or choose to focus on range-bound environments.

    How to choose a trader to copy

    Aspiring copiers should read and do before they jump into the “copy trading” pool. There are many more criteria that can help the copy trader to find an ideal lead trader. “Learn to take losses. The most important thing in making money is not letting your losses get out of hand.” “The key to trading success is emotional discipline. If intelligence were the key, there would be a lot more people making money trading.” “Amateurs look for challenges; professionals look for easy trades. Losers get high from the action; the pros look for the best odds.”

    Crypto Copy Trading Platforms

    We advise you to copy a trader who has shown a stable improvement over the course of at least six months. Give your investments time; this rule does not only apply to copy trading, but for any other form of investment you may use. The “top markets” tab on the main page takes you to the market page. This page has all of eToro’s traders, which you can find under the tab “copy people”. The traders are subdivided into categories, such as “recommended by the issuer” or “most copied”. This rough classification is sufficient enough if you are not looking for a specific percentage, nationality or investment product.

    How to choose a trader to copy

    Ideally, copy traders put together a “portfolio” of different traders to copy, so that they will always have a few successful ones running. Another way of increasing your chances of success is by copying multiple successful traders with different trading systems. After all, diversification makes you less dependent on market conditions. Yet, they do not have to spend time behind the screen, analysing any charts or assets.

    Choosing The Best Trader To Copy

    Essentially, you already need to be a good trader yourself, before you would ever be able to really know which traders are solid, and which ones are not. Other considerations include the fees you are paying to the trader and the copy trading platform. We see a growing popularity in copy trading, which would not be happening if people were losing money. Nevertheless, copy trading — without a proper approach — can cost you dearly. In essence, it allows you to follow other traders into their trades, and profit if they are successful — usually at a fee.

    In addition to the platform, spread, commission and overnight swap fees, there may be additional fees for account inactivity, funding and more. You should check to ensure that you are aware of and understand all of the potential fees that you can incur. The commission you pay for your trading activity can vary from broker to broker. Some trading strategies such as scalping rely on small price movements and thus performance can be affected by commission. It is important to consider the overall costs you will incur and the affect that will have on your trading strategy.

    Rates, terms, products and services on third-party websites are subject to change without notice. This compensation should not be seen as an endorsement or recommendation by, what is copytrading nor shall it bias our broker reviews. At the same time, it is preferable to systematically move away from traders who seem to have “slipped”, in terms of their trading strategy or psychology.

    • Copy trading is social trading anyway, so why not benefit from social validation.
    • Semi-automated copy trading involves adding an extra step to the process.
    • After you have identified a top trader of interest from the Leaderboard, you can visit this user’s profile page and see his/her bio, trading statistics, feed posts and trading history.
    • Opening trades which are very large in size is likely to expose you a lot to price movements of a single asset and that may be quite risky.
    • Trading is risky and letting other people do it for you may do more harm than good.
    • For instance, if you intend to invest USD10,000.00; divide your capital ten times risking USD1,000 with each trader.

    The last thing you want is a signal provider who panics and begins to change their way of doing things. Poor traders try to chase their losses by employing martingale kind of strategies or trading more frequently with the hopes of winning the profits back. On the other hand, professionals stick with their tried and tested systems. In turn, this would reduce the instant impact of losing money rapidly at once. By copying all trades, you’ll be invested in all of that traders’ open trades.

    You can usually do this by checking the performance of the various signals offered from within the social trading platform. Some platforms will have a handful of signal providers whereas others will have hundreds or even thousands. The more signal providers there are, the more choice you will have to find trading signals to copy that fit within your preferred trading style and objectives.

    Even if we try to offer the most up-to-date data, we can’t completely ensure the accuracy and validity of the materials. “I just wait until there is money lying in the corner, and all I have to do is go over there and pick it up. I do nothing in the meantime.” “The fundamental law of investing is the uncertainty of the future.” “In this business, if you’re good, you’re right six times out of ten. You’re never going to be right nine times out of ten.” “If you can learn to create a state of mind that is not affected by the market’s behaviour, the struggle will cease to exist.”

    How To Choose The Best Traders To Copy

    But if you did your homework, you would be at ease, waiting for the next trending move to show up. In this Trading 101 article, we take a deep dive into copy trading, its risks and benefits – and how to use copy trading to your advantage. The most economical way to deposit or withdraw money from the account is via USDT stablecoin using the TRC-20 protocol.

    This includes pros, cons and an overall rating based on our findings. We aim to help you find the best broker according to your own needs. Copy trading does not take into consideration your personal financial circumstances or investment goals. You are effectively relying on a third party for trading decisions but absorbing full liability and responsibility in the case something was to go wrong. You should never trade money that you cannot afford to lose.

    This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice. The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.

    It has a rich pool of traders, and it provides instant deposit and withdrawal methods. In addition to knowing how you can fund your account, you need to know how fast you can receive the money when you order a withdraw from the platform. Choose a trader with good commissions or profit share splits.

    Copying New Trades Only

    EToro lets users search for traders to copy depending on which assets they have allocated capital to. Moreover, if you wish to perform trades daily, you must consider your signal provider’s daily drawdown. The same applies if, say, you want to trade or make withdrawals weekly or monthly. Remember, drawdown is not an actual loss but rather the loss seen before your social trader begins to make profits again while the trade remains open. An actual loss would be the loss seen when the trade is finally closed. Also, stay away from traders who forget to use the Stop Loss function – this is a key principle of risk management.

    The Right Criteria To Choose The Trader To Follow

    In terms of fees, eToro is roughly comparable to other platforms. Whatever it is that you’re looking for, eToro makes it possible to search through and find traders with the balance of options that you need. The eToro site makes it simple and straightforward to find traders who fit your strategy needs. But as you’ve seen, you can simultaneously copy up to 100 traders. So, if you want to find more traders to copy, here are a few things you could consider when choosing the right ones for you.

    Mirror Trading Vs Copy Trading

    Login to the Webtrader Platform using your registered email address and password. MoonXBT is known for its incredible speed of execution, according to its team. Here are five things that you should look for in a copy trading service. When it comes to withdrawals or deposits, the account will be charged fees that will be given directly to miners. We want to copy those with experience, and those that utilize their experience, to make consistent, reliable positive returns.

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