Binary Options

Can You Earn A Living By Copying Other Traders

mirrow trading

Sometimes trading goes really hard. Still there exists a solution: copy trading. This option would perfectly fit beginners and those who are not willing or not able to analyze the market. This is where one simply copy trades of experienced and professional traders. The only requirement is a PC and internet and there comes the wealth earned in the most comfortable conditions of one`s home. Moreover, the above-described feature will become the best earning option for people who are not willing to spend 8 hours in the office.

So to conclude: copy trading for sure will definitely fit in your daily schedule even if you have very little or no clue at all about trading and markets.

What is Copy Trading and how it works

Copy trading has recently become a new method of trading. The point of copy trading is in its name: traders are enabled to copy trades that have been opened and are being managed by a chosen investor, usually, an experienced one.

One should not confuse copy trading with the mirror trading: mirror trading understands specific strategies copying while copy trading means the complete replication of all the actions performed in the investor`s trading account including the trading amount. Though still copying traders prefer to keep the ability to disconnect the copy trading option and manage their accounts themselves.

The expansion of copy trading method has led to creating so called “people based” portfolios where traders invest in other investors, not in the market.

Study

In 2015 a research has been funded and launched to count the percentage of traders benefited from copy trading. The results were impressive: those traders who opted to follow and copy a suggested investor fared 6-10% better than those who opted to trade manually. The percentage of the ones who copied random investors was lower, 4%, but still higher than manual traders` profit.

Used methods

There are a number of copy trading tools utilized by various trading platforms which offer copy trading option. The use of any particular copy trading toll entirely depends on several factors, among which are the following: minimum copy trading quantity, minimum copied trade amount, and the way money in/out operations on behalf of the copied trader are reflected in the proportions between the copied-copying accounts.

Market

The Foreign Exchange Market, in short Forex, may be considered the background for the Copy Trading. Shortly after other markets started to launch copy trading strategies: binary options, stocks, commodities and even Bitcoin.

How exactly Copy Trading works

Copy Trading, apart from earning profit option, as well enables any trader to become a professional. Any trader, beginner or expert, may become here a pro if able to assure other involved traders to have their trades copied. Becoming a pro trader also gives one an advantage of receiving commissions for each performed trade.

Professional Trader

A professional trader, also called ProTrader in Copy Trading, is the trader whom one has decided to copy. Nowadays each platform provides various trading performance data. Some platforms even make analyses of the executed trades and make a list of the top traders with the statistics for each top trader in a number of won and lost trades. This simplifies the trading process as there is no need to search data, count, analyze- all has been done for you already here! And it will be up to you to consider each Pro and select the most appropriate to your view to follow and copy.

Investor

As an investor, a live trader, one has all visible and accurate data about the Pro traders and the point here is to read the information thoroughly and make the right choice taking in consideration two main components: your goals to reach by this copy trading and risk management.

Replication process

Once your choice which ProTrader to follow has been done, you are good to go and to start copy trading choosing among current open trades of the selected ProTrader. Once followed, an investor will find on its account the particular trades that are being followed, including the following:
The existing open positions will reflect in the Investor’s account with the market rates at the moment of copying trades (not the original rates at opening).
The trades will show all the ProTraders` actions from the moment you started copying them.

Providers

Among the most famous and well-recommended copy trading service providers are FX Copy, Bretton Prime, Tradeo, eToro, Darwinex and many others. Copy trading has become an extremely popular option for less experienced traders and beginners. Copy trading allows them to gain profit as well as experience from more successful and professional traders.

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