In a world that has now become more connected than ever, it comes as no surprise that Forex traders are sharing ideas and information. Copy trading, which is essentially the act of one trader copying the trades of another, is not a new idea. However, it is an idea that took a few years to perfect and deliver to the trading community. If you are not yet copy trading, consider these five reasons as to why you should be.
- Copy trading is perfect for inexperienced traders. If you are new to the world of Forex trading, then you are likely taking things slow while you learn how to trade correctly. While there is certainly nothing wrong with this, imagine if you could build profits immediately! By copying the trades of others, you essentially have a seasoned Forex trader holding your hand and walking you through each trade. It simply doesn’t get any better than that!
- Copy trading saves you lots of time. In one word, I can explain to you why Forex trading takes so much time – analysis. That’s right, technical and fundamental analysis can (and will) dominate your time if you plan to trade with any accuracy and frequency. When you are hand-delivered Forex trades that you can copy, you can bypass (or at least reduce) the amount of analysis that is required.
- You’re likely to earn a lot more money. Let’s face it – while you may be trading Forex for fun, the primary reason for your trading activity is to generate profits. Copy trading can allow you to fire off more trades and close more profitable positions. It can be done as a solo method, or in addition to your regular Forex trading activity. Either way, you’re likely to earn more money from the Forex market if you copy trade.
- Even experienced traders can benefit from Forex copy trading. “I’ve been trading Forex for years, so why would I need any help?” Good question. The answer lies in reasons number 2 and 3. You can save time and earn more. Who knows? You might even learn a new strategy or two by viewing Forex trading from the perspective of someone else. Even if you have been trading FX for years, there is always something new to be learned. Hence, copy trading is for professional forex traders as well.
- There are no (or few) limits to who you can follow. There are various systems out there, but many allow you to choose from hundreds of different copy trade options. In most cases, there will be more options than you could reasonably put to use, but this is not a bad thing. This only means that you’ll be able to make the best selections from the most successful traders to copy your Forex intel from.
So, is Forex copy trading for everyone? The short answer is, yes. Novice and experienced traders alike are likely to benefit from putting the knowledge and skills of others to work for them. While some copy trade systems do cost money, others are offered for free. Whatever system you choose to use, put it to the test before getting started (a demo account is perfect for this). Once it passes your tests, copy trade on!