Updated: Feb 18
People are always inspired by leaders. Whenever they see them, they feel like stars they can never reach. Social communities are at the height of their popularity in an age of digital interaction and influencers. Some people seek appreciation, while others seek knowledge, skills, and skills from a guru. There's no need to spend time researching. As an alternative, you may be able to borrow something from someone who's more skilled, experienced, or just sneaky. It's impossible to erase people's desire to own toys like Mary's.
Global users absorb and recycle information once it has been posted on the web. In all spheres, including finances regarded as conservative and rigid, the digital generation democratized everything. This also applies to the trading market. The market has been continually updated in recent years. It has transformed into an open platform for anyone with big dreams and ambitious financial goals around the globe. Social trends have forced a change in investing ecosystems. A better trading platform had to be intuitive, accessible, and quickly meet traders' needs.
In that era, social trading became popular. It is a rapidly developing trend for people who do not have a solid background in trading but are interested in entering the market. Investing money and copying top performers can make them money. Simple and effective! Here are the advantages:
No financial savvy required
Simple to start
Get results fast
Without putting in a lot of effort
For example one of the best brokerr which offer forex copy trade - FBS . FBS platform is fashionable and social, so there was no other choice. The CopyTrade app was born! More than 2 500 000 users downloaded it since launch and it won the CFI's "Best Copy Trading Application 2018 Global" award. Let's get started!
What to avoid when copy trading for the first time.
You're on the right track if the CopyTrade app is now at your fingertips. If you are tempted to click Start copying, take note of the common illusions that may lead to a loss of funds. Make sure the trader performs well over time, rather than being a random lucky devil. Analyze your influencer's strategies to understand how effective he or she is. Check whether the trader was successful once or failed several times but then earned back the loss and earned the two-time profit. Keep an eye out for huge losses. Do not duplicate the pattern if the trader has them here and there regularly.
Many traders go viral for the wrong reasons. Just one good deal can create a buzz around this person and win him/her copiers. Avoid being like these people. Trust your money to someone you respect. “Less is more” is not the right approach for copy trading. We advise you to diversify your finances and invest in several traders. If you choose this path, you will secure yourself against unpredictable losses. Even if you fail with one market performer, there will be others that can be more successful. Be careful, smart, attentive, and ready to accept the consequences for the actions you assign to others.
What to Look For in a True Leader
Invest some time in the analysis of top traders first if you want a relaxed and profitable trading future.
In order to help you make the best decision, we put together a list of parameters:
Return on Investment The graph displays the profit that the initial investment makes during a selected time period. The profit is expressed as a percentage. The Return Rate parameter has an arrow next to it that indicates its dynamics, which can be either positive (gain) or negative (loss). A three day average is calculated for it. It does not necessarily mean that a trader has always lost, even if the volume is red. Calculate the average return rate for at least one month. Keep a close eye on the return rate percentage. The indicator-arrow points down if during the analyzed month it was red, indicating a shaky trader during the past three days. That doesn't mean the trader has been unsuccessful overall. Trader's activity This statistic represents the ratio of the number of days from the creation of the account to the number of days during which the trader closed a deal. It is not recommended for copying if the activity is low, because you will have to wait months or even weeks for a profit to be realized.
Number Of Copiers A trader's trust score is a measure of how many investors have trusted them with their funds. This does not necessarily guarantee that the trader will succeed. For this reason, it is the last parameter to be considered. Take it into consideration only after analyzing all the other metrics.
Total orders closed The table shows the total number of deals closed and the ratio of successful to unsuccessful deals. When you click on the progress bar, a pie chart reveals the details per pair of currencies. The information helps you understand which direction of the market is more profitable for the trader. Making a wise decision will be easier if you keep this information in mind.
Trading Account Lifetime From the moment the trader's account was created until now. When a profile has enough history, it means that the owner never lost so much that he had to stop trading and give up on the profitable deals. The owner of such a profile deserves more trust. Take action after making your decision. You'll soon start earning passive income. Trading the Future or Passing the Trend?
After considering the above information, we will ask the following questions: "Will people stop being social?"? Are people going to stop following experts and charismatic leaders? What will happen to the “simple interface”?”.”.”. In a nutshell, it is two letters, N and O. This has to be accepted. However, the philosophy behind copy trading apps has not changed and will not go away. As long as they continue to copy traders with a unique track record, they will harness their wisdom, and earn the confidence points for future investments.