What is Copy Trading? Copy trading enables traders, experienced and new alike, to take part in the financial markets, by having their trades executed by experienced and seasoned traders with proven track records. This form of trading offers a unique solution for people who wish to trade and invest money with the aim of increasing their initial capital, however lack the time or experience to invest by themselves. For this reason brokers offer the possibility of copy trading. There are multiple platforms which offer copy trading, and while some are manual, other are automated or semi-automated, and all offer different variations of copy trading. Ultimately, traders should choose what’s best for them.
Copy investing, or mirror trading became very popular with investors worldwide, mainly because many early adopters have had enormous success and were able to boost their trading skills and profitability with zero effort. Copy trading enables novice investors to do just that. They don’t need to know how to analyse the markets or how to interpret forex signals or indicators.
Novices are using other investors’ abilities and thus increasing their own success rates. Also, copy trading can be used by experienced traders too, as a way of learning new trading strategies from others, and by that, increasing their success in the online trading market. If you would like to start investing in the stock market but do not have a lot of experience, or you are a seasoned pro who would like to gain insight into the analysis of others, using copy investing / mirror trading could be an excellent place for you to begin.
The Rise of Copy Trading
To begin we need to establish that there are two main types of traders, those who attend seminars, attempt to compile strategies, follow all market trends, and enjoy ‘expert-trading-fees’. Then you have the other group that want to make money with as little input and effort as possible. For the latter, mirror or copy trading was created and has suited many as the perfect solution.
The growth in the past 5 years of copy trading has been exponential, for its main reason is that many traders ‘trust’ this system, and have a comforting feeling that they are not trading alone. AvaTrade offers you popular signal providers that are the best in the business.
Copy trading is not only for the unexperienced, a lot of expert traders use copy trading as a means of market research, it saves time and could be part of a new strategy that could be implemented and profitable.
Advantages of Copy Trading
There are many advantages to copy trading, and as such it has earned its place amongst traders:
✓ Allows first time traders to familiarize themselves with the financial markets and gain confidence to trade.
✓ Enables experience d traders to take part in the market even when they are too bsy, and cannot invest the valuable time and research needed in order for them to traude.
✓ Copy trading can be employed on various instruments, including forex pairs, stocks, commodities and much more.
✓ Creates a community of traders, beginners and experienced alike, who can exchange ideas, strategies and improve their trades together.
Open a copy trading account with AvaTrade and join the success of experienced traders!