Forex Copy Trading Explained
In addition, eToro offers copy trading, the possibility to copy movements from more experienced operators. This is different from the AI trade, because here you copy decisions from the supposedly best operators, while you let a computer make decisions for you with the AI trade. It is now difficult to say and distributing your money over the two can produce the best results. Remember that losing money is always possible and just invest the money you are willing to lose.
Of course, with all investments there is always a risk that you can lose the invested money. If you cannot afford to lose the capital you have invested, it is best to wait until you can limit that risk to ensure that you have no financial problems. Unless you are a long-term investor, active trading in financial markets is a time consuming process.
The manual version offers discretion and if you use your own discretion, you can expect the return to be different from the efficiency of the historical copy operator. Operators can certainly make money through the copy trade, but before you start, consider manually copying operations to see if the return is as profitable as expected. Your risk appetite is the most important thing to consider when choosing an investment.
If your plan is to just track and copy other traders, no experience is required, although it may be helpful to analyze and select a good trader to copy. In reality, it is often inexperienced traders who like to use the copy trade. Growing an account and taking the time to analyze the transactions that follow can also be a very good way to learn about trading.
In the case of social trade, investors get ideas from many different social networks. Any operator can catch a lucky guy or find niche market conditions that offer a range of winnings. Only truly qualified and knowledgeable can consistently achieve good results. FIN888 Don’t be discouraged if you see bad losses or months in a popular investor’s statistics. Serious traders expect some losses and are willing to accept and learn from them. What you are considering is the bigger picture and looking for a general profit pattern.