Copy trading can be a little controversial in the trading market, since some individuals who trade for a living do not like that others can simply skip the learning curve. But even if many feel like it is “cheating,” the truth of the matter is that coy trading can be very advantageous for people who are looking to become better traders. Lucky for you though, getting into copy trading is easier than ever, and you can really start getting into trading without having to worry.
Step-By-Step Guide to Start Copy Trading
Even though plenty of people have their grievances with copy trading, its benefits clearly outweigh the cons. So according to Copy Trading Critic advice, now is as good as a time as any to get into copy trading. And to help you start on this journey, here is a dedicated guide to everything that you need to know about starting copy trading.
Find a Good Strategy Manager
The first thing that you want to do when you are starting your copy trading journey is to find a good strategy manager who will be able to trade the way you like. Here is where some of that prior knowledge about trading can be useful. With this information, you will be able to decide what type of trading you want to do.
You want to look into the strategy manager’s risk tolerance, return, profit share, and the days that they usually trade. When you look into this you should be able to find a trader that can especially benefit your trading style. So regardless of how you want to start trading, you should look into a good strategy manager that perfectly represents what you are trying to achieve with trading.
You should take the most time on this step, and you should also choose multiple managers. Since you can easily unfollow a manager whenever you like, you can then start to follow another strategy so that you do not suffer from a loss.
Make a Deposit
Next, you want to make an account and a deposit. Making an account is simple and you will be done in 10 minutes when you just give your personal information as well as some banking information. When your account is ready, you will have to make that initial deposit, which you will then leave to your trader to make deposits. Granted, you will be able to choose to trade in an asset that they are trading in, and you will even be able to set an amount.
Copy the Strategy
Now that you have the account ready, you will copy the strategy that you found in the first step and choose how you will want to run the account. You can certainly choose which assets to trade in and for how much, or you can let the trading manager take control of it.
You can also go for an in between option, where you can choose from certain types of assets and leave the rest to the copy trading brokers. So if you have a better understanding of stocks, you can personally choose whether or not to invest in their choices, and leave the rest to them.
Give a Percentage to Your Strategy Manager
Of course, if you are taking their trading strategy, you will have to pay them their due in return. This can usually take the shape of a percentage that they take from returns, which is also something that you will have to consider before choosing them. If they have a higher success rate they might take a higher percentage.
Copy trading is not very difficult to get into, since you can rely on the expertise of other individuals in the market. And if you want, you can have a completely passive income stream if you are careful with who you choose as your strategy manager.