How To Find A Good Copy Trader On eToro?

How To Find A Good Copy Trader On eToro?

Copy trading is available to clients of leading social trading platforms. The idea is straightforward. You select a top pro trader, deposit funds, and establish your copy trading account, and you’re ready to go. The trades are taken by the copied trader, and your copy trading account replicates them. All that is left is for you to monitor your daily profits. Yes, it sounds great, but is copy trading that simple, and can you make money from it?

All trading is risky, and if you delegate responsibility for making money for your copy trading account to someone else, you must thoroughly research the professional trader’s background. So, you know exactly how they trade, and you can be sure that copy trading will make you money for many months to come.

How To Find The Best Trader To Copy?

The first and most important step in starting a copy trading business is to find the best trader to copy. Can you rely on a social trading platform for copy trading?

Social trading platforms, such as eToro have strict criteria for professional trader status.

According to Traders Union, professional traders must have a trading account that is verified and explain their trading plan. At least two months’ worth of trading activity on the platform is required, as is money in the account. A professional trader must maintain a risk profile that meets the requirements of the social trading platform. If the trader exceeds that level, the platform will intervene.

Find a trader with at least a year of experience. Even inexperienced traders can be profitable for a few months at a time, so it is best to copy trade a professional trader with considerable experience. Look for a combination of a good monthly return and minimal trading risk.

Be realistic about your expectations:

 Always be real about what you get in the future and look for a trader who makes at least 5% per month. Be wary if a professional trader shows high profits, such as 20% per month. This trader could be employing high-risk strategies.

Make certain that the trader is not imitating another trader. You can see from their profile that they trade directly. Examine their trades carefully to see if there are any anomalies. Remember that a high win rate is not required. A trader may lose 50% of their trades, but if their strategy rules include a risk-to-reward ratio (RTR) of 4 to 1, they will grow their account and yours.

Take your time finding a trader to copy if you want to make money from copy trading. Think about the long term to make consistent profits, and keep a close eye on the trader’s past trades to make sure he or she keeps trading with low risk and high reward.

Is It Possible For You To Profit From Copy Trading?

To become wealthy through copy trading, you need a social trading platform with a high number of registered users, such large number of Copy traders on eToro has a track record of success. If you only have a limited amount of time to learn how to trade, copy trading may be a good option. If you’ve tried trading before and found it too complicated or annoying, a copy trading service might be just what you’re looking for. The key is to find the right copy trader, which may require some effort. Hundreds of professional traders are available for copy trading on some social trading platforms. Try not to judge a copy trader’s success by the amount of money he or she makes.

Consistency Is The Key To Profitable Trade:

Most traders can make money in the short term. The challenge is to make consistent, long-term gains. As a result, select a trader with at least one year of documented trading experience. Choose the type of trader to whom you want to subscribe. Perhaps you prefer a day trader or a trader who scalps the market. Swing trading may appeal if you are comfortable with overnight trades or open trades for a few days or more. The latter has fewer trades but a larger return when trades close. If you want to use a certain type of financial instrument, you should avoid copy traders who don’t offer that service.

Some Final Words…

It’s necessary to consider the rewards and risks involved before diving in to the copy trade. You can use a copy trading service for 100% passive income or learn from a professional trader to improve your trading skills. Finally, have fun with your copy trading. Never trade with money you can’t afford to lose, and always choose low-risk copy trading. Please keep in mind that the above information does not constitute tax, investment, or financial advice. We provide the above information without taking into account a specific investor’s risk tolerance or financial circumstances. Financial instrument trading or investing may not be suitable for all investors. It does involve some risk and the possibility of capital loss.