Copy trading is a way of trading online that allows even less experienced traders to try to make money. In fact, copy trading consists in copying the investment strategies of a more experienced trader. Brokers offering the Copy Trader option provide interested users with an innovative service.
Together with the new practices of Social Trading, in recent years, this new way of investing has also been born. Less experienced traders can link their profile to that of a more experienced investor and the broker will automatically replicate their moves. The same positions will open as the trader you have decided to follow and you will be able to get the same gains.
But be careful, as the gains are the same as those who made the strategy, the losses are also identical. The trader, before activating copy trading, must therefore be very careful to choose a good investor.
Copy trading, if used correctly, can be not only a way to make money, but also a good way to learn, since study and practical application can be combined.
The disadvantage of copy trading, however, is that some investors do not try to learn, but only to earn by relying on the experience of others. Copy trading, together with social trading, are instead excellent learning opportunities, which must be exploited in the manner.
With copy and social trading you create a community of online trading enthusiasts, who can exchange opinions and try to improve their strategies. To learn about the platforms that offer the opportunity to operate as a copy trader, we recommend reading Copy trading: what is it and how does it work?.
