So, you’ve decided to earn some money on Copy Trading. How to do it actually? Are there any efficient strategies?
Well, there are some pretty good tips helping you to earn with almost no risk. If you follow between 1-3 traders simultaneously, the trades of each trader are copied to your account. If the trader makes money, you do too. Very simple.But how to find traders to copy?
Choosing Proper Traders to Copy
Try to find traders meeting your aims with the help of special filters:
• 1-Year Trading History. Copy those traders who have at least 1-year trading history to know whether they perform in a long run.
• Low-Risk Score. Make sure a trader uses sensible practices, so choose a trader with lower risk scores.
• A 10-30% year return. When a trader has a year return of 80%-200%+, it means he was using too much leverage and was just getting lucky. It doesn’t mean this investor is experienced, and thus, he won’t show the same results in a long run.
• Active Trader. Active trader means a trader who has at least one trade per week. Such traders will be more likely to work hard on growing your copy amount. Otherwise, your money will simply be locked in one or two trades.
Some More Tips On Successful Copy Trading
Here are some more top tips on how to make money with copy trading.
Copy Trade several signals/people – The key to successful copy trading is diversity. No one makes constant returns by copying a single person only. Your goal is to copy at least 3 signals or people.
Forex robots have nothing to do with copy trading. Professional traders use some robots and software for assisting their trading, but there are no robots returning profits constantly. Copy trading includes copying only real people.
Be active. Sitting back and making money is not a good approach. Your first step should be making research and filtering with the aim to find top traders. Make sure to monitor your portfolio to be sure the traders you copy will not lose your money.
Use stop losses option. Majority of the trading platforms let you set stop losses on your copy trade. In case a trader loses the amount you’ve invested in him, you can stop copying. You may set any percentage you wish to stop loss. This will ensure your account from being wiping out.