Passive Income: Start Copying And Earning With Pro Traders

 What is Copy Trading?

It’s all in the name! Copy trading allows you to directly copy the positions taken by another trader. You decide the amount you wish to invest and simply copy everything they do automatically in real-time – when that trader makes a trade, your account will make that same trade as well.

You do not need to have any input on the trades, and you get the identical returns on each trade as your chosen trader.

Copy trading is one of the easiest ways to use another trader’s expert knowledge. It also means that you don’t lose any control over the outcome. You still have the ability to close trades, and open new ones when you want.

But by copying another trader, you could potentially make money based on their skills.

In fact, no advanced knowledge of the financial market is required to take part!

How does copy trading working work?

1. Select a trader who best matches your goals to follow, by using the tools provided by the platform. Octafx Copytrading helps to filter the available traders. What is important to you? Perhaps it’s their number of followers, or profitability, risk level, the total amount of funds they manage or their return on investment. You might choose a combination of these – it’s completely up to you based on whatever you think is important.

1. Decide your investment amount, and how you will share it among different managers. Be balanced and don’t put all your eggs in one basket, so choose how much to allocate to each chosen trader if you have selected more than one person to copy. For further guidance, watch our short video guide.

1. The copy trading platform will then automatically replicate all the selected trader’s positions in your trading account.

1. Add more funds if you like how the trader is performing. Or, reduce your exposure to one trader and keep your portfolio diversified by not investing too much in a single trader. You can replace your existing ones at any time, just keep in mind that you’ll need a separate Invest account for each trader you decide to follow.

1. There are no special fees to use the copy trading function, apart from the ones you pay the Strategy Manager whenever they make a profit. Any brokerage fees that would apply to a normal trade will be applied to copy trades.

The benefits and risks of copy trading

Benefits

The advantages of copy trading are the reason it has become so popular.

What is the goal?

To find traders that have a strong track record and trading style that you want to emulate.

Or you can spread your risk across your portfolio which will enable you to ride the ups and downs in markets so that you can trade over the long-term.

Accessibility

Copy trading offers an interesting and reachable route into trading. Huge advances in social trading and the multiple social trading networks means this is now freely available.

Upskill your own trading knowledge

Copy trading allows you to follow the trading activity of experienced traders, some of whom have years of expertise and know-how. You can learn from watching by replicating their success and developing your own trading.

Diversification

With the huge variety of trade strategies on offer, you can now allocate your portfolio to numerous providers across different assets. By spreading the risks associated with individual decisions, you can offset losses if one trader performs poorly. You could also potentially make money in several types of market environments.

Ask yourself…

do you want some oil exposure as Saudi Arabia becomes prone to more acts of sabotage? Do you want to take advantage of intraday moves during Jerome Powell’s press conference? Or perhaps you are content with a quieter life, lower volatility, green investing perhaps? You can get whatever exposure you want, on your terms by tapping into a wealth of global expertise.

Free time

You can continue to trade in the markets throughout the day as someone you have chosen is monitoring them and trading. This means you can spend time on your other hobbies!

Risks

The main risk with copy trading is an obvious one – you are taking part in some risk with financial implications. Trading by its nature is a high risk, high reward endeavour.

Market risk

Copy trading, like with any trading in financial markets, involves putting some of your capital at risk. Inevitably, the market risk associated with this means you can lose that capital as the assets your chosen trader has bought and sold may be prove unsuccessful.

Trader Histories

Choosing a long-term reliable trader to copy can be difficult. It is up to you to do your own homework to make sure you understand your chosen traders. Sometimes, results can be too good to be true, or a trader is going through a hot streak which means a drawdown is close by.

Execution risk

As with any financial trading, there is risk involved if the assets being traded are illiquid i.e. how easy is it to exit the positions held. You also need to be aware of other areas like what costs are included in the copy trader’s returns and is the bid/offer spread already included in published returns.

Be an investor yourself

A lot of our Strategy Managers choose to be investors themselves, for an extra way managing their money. While Octafx Copy Trade is a type of copy trading program, another way to define it would be to call it a money management system. That's exactly how some of our Managers treat it.

If you choose to follow another Manager yourself, you get to retain full control of your money just like other investors, and you only pay a fee to the Strategy Manager when they generate a profit for your Investment account.

Visit the Octafx Copy Trade page for Investors to learn more, or read on to find out more about the perks of being a Strategy Manager.

BRAINSTROM- VISIT OCTAFX COPY TRADING PLANFORM TO OPEN ACCOUNT.