Copy Trading

[Arafx]

What are some common mistakes that newcomers to copy trading should avoid?

 

[FxMaster]

What are some common mistakes that newcomers to copy trading should avoid?

I can suggest a few as relying on other's research instead of own, choosing the wrong traders to copy and most important, Ignoring Risk Management.

 

[Arafx]

I can suggest a few as relying on other's research instead of own, choosing the wrong traders to copy and most important, Ignoring Risk Management.

Right. It's crucial for newcomers to understand the pitfalls of relying solely on others, choosing traders thoughtfully and prioritizing risk management.

 

[thomassup]

Blindly Following: Avoid copying traders without understanding their strategy or track record. Research and choose wisely.
Overexposure: Don't allocate all funds to one trader. Diversify by copying multiple traders to manage risk.

 

[Arafx]

Blindly Following: Avoid copying traders without understanding their strategy or track record. Research and choose wisely.
Overexposure: Don't allocate all funds to one trader. Diversify by copying multiple traders to manage risk.

Right. Putting all your funds in one basket can be risky. Diversification through copying multiple traders is a smart risk management strategy.

 

[Komondar]

Copy trading may seem simple, but in reality, it's not as straightforward. Additionally, I believe mistakes can include issues like insufficient adaptation to market changes and ignoring economic events.

 

[bigdolly]

Yes copy trading is super easy way to establish additional source of income but it requires a bit of research. You have to make a list of signal providers and combine them in terms of win rate, drawdown, age of their account etc. to find the best one. I tend to choose vendors that trader conservatively and offer return that doesn't exceed 20% a month.

 

[Malaksen]

Probably to put all your eggs into the basket of one trader.
I would recommend diversifying the funds between several traders with completely distinct trading styles and yield/risk exposures if possible.
Consider it as the regular investing process. And as every investment it requires proper diversification.