There are two ways you can be successful in Forex trading. You can learn the intricate details of the market and develop your own strategy to bank profits or you can learn from the trades of professional traders and use their trades to be profitable. The latter, known as copy trading, is becoming increasingly popular as the Forex market becomes more accessible.
Copy trading is now easier than ever. There are multiple ways you can learn from other traders and the positions they make. There are even ways to automate copying trades based on signals from various sources. To help you get started, we are going to cover the basics of copy trading in this article.
Copying from Professionals
There are multiple ways to get signals from professional traders. Some traders offer their signals as paid subscriptions through various channels. Others make their trades accessible directly in copy trading apps and trading platforms.
Using copy trading apps is almost always the way to go. It is faster and more in real-time, which are the kind of benefits you don’t want to miss when trading Forex. Dedicated apps to help you receive signals and trade in real time are also available.
The best forex signals app according to InvestinGoal.com is the eToro app. eToro is a broker famous for its advanced features, extensive selection of investment instruments and commodities, and advanced automation features. You can automate copying the trades of professionals using eToro. Find out more about the eToro app by visiting InvestinGoal.
Choosing What to Copy
Many Forex traders (mistakenly) believe that copy trading means copying everything. That’s definitely not the case. You still have complete control over how you copy the trades of professional and experienced traders, although you do have the option to copy everything.
Using apps like eToro and the NAGA trader app, positions are relayed as signals. Those signals come with the underlying reasons why the positions are opened. You can then choose to manually copy the trade or make necessary adjustments as you see fit.
There are even markets to choose from. The ZuluTrade app, for instance, focuses more on the forex market. eToro, on the other hand, lets you copy trades from various markets available on the platform, including cryptocurrencies and commodities.
Scaling the Trade
One thing to understand about copy trading is that you have the ability to scale your trades. Since professionals have different margins and account balances, you maintain complete control over the size of the positions you copy, the target profit and stop loss added to those positions and more.
By scaling the trades, you can be as profitable as the professional traders without adding more risks to your investment profile. You can also incorporate more advanced risk management strategies to better protect your investments.
One last important thing to understand about copy trading: it is a learning tool. While it is great to copy the trades of professionals and the more experienced traders, the biggest advantage comes in the form of having that ability to learn from their trading decisions.
That’s it! Choose a copy trading app that suits you best, set up your account, and begin copying successful trades right away.