Using the Forex copy trading strategy allows you to learn from the best traders from around the world. You just need to select the one whose trade you want to copy and determine the time when you need to stop mirror trading on the Forex exchange.
Almost every trader who has conducted a comprehensive comprehensive analysis of the Forex market and traded in various stages of the trend, sooner or later faced errors. Trading mistakes can range from high rates or leverage to a complete misunderstanding of how to set a stop loss in Forex. This can be both a consequence of a lack of experience and the choice of the wrong mentor for trading and making money in the foreign exchange market. Also, just such mistakes can lead to the fact that a trader will have a desire to find a mentor for himself who will help him improve his trading activity.
3 mistakes in copying trades in Forex
As in using any trading strategy, the use of copying transactions on Forex can be accompanied by certain obstacles that will make this type of earnings on the exchange ineffective:
- Most signaling providers manage a large number of accounts at the same time, but at the same time publish the results of only successful ones, which are also called master accounts. This does not mean that the statistics of a successful account are false, but this is definitely not a complete picture of its activity.
- You can find many accounts with hundreds or even thousands of percent growth. It may be true, but the devil is in the little things. Perhaps the bulk of this gain was achieved in the first two months, and the current trading period is not bringing such impressive results.
- Some of the accounts that are available for copying are limited in existence and close quickly. That is why it is very important to analyze accounts and their owners in order to avoid fraudsters.
4 recommendations for making money by copying transactions on the exchange
In order to avoid these mistakes and make copying transactions on Forex your key to successful trading and stable income, you need to follow these 4 simple recommendations:
- Choose a signal provider that has been in the market for a certain amount of time. An account that has earned 80% gain in three months sounds risky and will probably end up badly. But an increase of 20-50% throughout the year is quite an attractive long-term prospect.
- Choose a provider that will provide constant data updates, i.e. at least once a day.
- Some platforms will offer you the option to increase the leverage that the trader uses. Should not be doing that. Typically, traders who are copied use sufficient leverage.
- Do not copy more than one account, as this can lead to unnecessary rates, as well as a margin requirement, which will definitely damage your account balance.
To copy or not to copy
The issue of copying transactions on Forex is quite individual and each trader has the right to decide for himself whether or not he should conduct such a trade. Forexone blog just wants to note that it is very difficult to find a trader with stable profit over a long period of time. We recommend that you split your trading deposit into parts and, for example, invest 20-30% in copying transactions on the exchange, but you must strictly limit yourself to the time period for which you give money to another trader to manage.
With the right approach, copying trades on Forex can be really worthwhile earnings, but you must understand that you are in a constant selection of traders to follow and make a profit.