Hi everyone,
I’m a newbie in forex. At this moment, I’m studying fx with babypips & testing demo account.
I find out that there is a broker (NatureForex) providing social trading service to help some newbies like me can start to learn, follow and copy orders of other experienced traders. This theme quite makes sense to me:
I just wonder that have anyone made profit from social trading? Please give me your advise.
Thanks!
Copying someones trades is not going to help you in your learning process.
I think I can learn myself in the meantime making some money from other’s ideas at early stage still.
Totally agree with you. However, I just have a question that “does trader really make profit from social trading?” => It’s so easy when following successful traders and copying their trade, right?
If it was that easy everyone will do that and make easy money. Ask your self why would some professional trader let you copy his/hers trades.
Totally agree, if it was that easy then everyone would be make thousands of pounds. I have been doing forex for 3 months now and I have a desire to be a top trader in my own right. Back test, forward test, go through the BabyPips school, work out what TF suits you best, set yourself targets, define your ‘own’ rules (stick to them), of course learn from others and then in time you will be making money in forex.
Happy trading
+1 on that. Those who think copying trades from others is a great idea to make money on a consistent base can go ahead and try. Besides losing money you will lose valuable time.
This post was flagged by the community and is temporarily hidden.
It’s possible, but it’s extremely difficult.
Appearances can be [I]very[/I] deceptive.
Looking at it it superficially, one might expect that the most successful and top-ranked traders available to be followed at the social trading sites, who have made the most profits over the previous (say) 6 months, are also likely to be the ones who might make the most profits over the next (say) 6 months.
Unfortunately, though, not only is that [I][U]not[/U][/I] true, but there are very often specific reasons why [B]the exact opposite[/B] is far more likely to be the case.
Understanding those reasons isn’t easy, and requires plenty of experience and judgement (but, briefly, it’s to do with the high-risk, crash-and-burn strategies that the apparently most successful traders are typically incentivised to use, at social trading sites, according to the basis on which they themselves are effectively paid for having “followers”: in general, the top-ranked ones are typically also the highest-risk ones, but you need a lot of experience and judgement to understand why).
Something to keep [B]well[/B] away from, unless you’re [U][I]very[/I][/U] familiar with understanding all the finer points of how these things work (and that’s far from easy, because they vary hugely from site to site). The effort one would need to put into understanding it would typically be far better applied to one’s own trading education.
You have no idea what you’re talking about: as so often, you’re just rapidly increasing your post-count with brief, completely trite and entirely unhelpful comments signifying absolutely nothing.
Let’s say you found a good trader and you want to copy his trades.
You intend therefore to copy the Master account not the MAMM.
There are some issues with this:
The list can be longer. It looks good on paper but can be dangerous in practice.
To me a MAMM account looks better.
You are right, it is very necessary to concentrate on your own trading and learn ways to analyze the market and trade on your own. If you rely on others signals then you won’t become a good trader yourself.
I did actually try to copy someones trades once. It was a bit of a disaster.
Firstly – you would need to find someone who was trading at exactly the same time as you. That is a big issue. First – imagine if you found a hot trader who you wanted to copy the trades they’re making. If they’re not even in your timezone then they could be making trades, managing them, exiting them all while you’re asleep. Then if you found someone who was actually trading when you’re awake – you would need to be at the ready the entire time they’re trading. If you get in on the trade you may miss the management, or exit. Maybe they trade on small time frames so it’s going to mess with your work/school etc. Or maybe they trade on large time frames and are happy to wake up in the middle of the night occasionally to check their trades because some economic paper or interest rate announcement is happening across the globe. Again you’ve missed some critical aspect of the trade.
In my case – I found some hot trader. He had a good record. I kept missing the opening of the trades he was making. But then one day I struck it lucky and jumped in the same trade. Of course, I ended up losing pips – while he made them. Not really surprising…It was a good experience in retrospect. It taught me to just focus on my own trading…
It’s a bit like cheating at your high school exams, you get a short term advantage, maybe but you pay a price in the long run. Copy trading only works in my experience if you understand the fundamentals of how the systems work, MT4, VPS, spreads, slippage and most of all trading style, drawdown etc. It most often leads to a blown account for the new entrant. It helped me get a handle on how trading works, by all means try on a demo account but be aware they are going to give completely different results. There are some good signal providers out there but finding them and making them work is very difficult. Use copy trading as an introduction if you want and build your knowledge and then trade on your own, good luck everyone
Social trading is always been a great learning for me. But you should be extremely wise to choose your trader. Look for traders who are have constant earnings and try to diversify your portfolio with different currencies following different brokers. We don’t have to just copy the trade and make hopes for profit. Look at their trading methodology, their stop losses, their moves. If you find a sudden move try to know the reason for it. Follow your traders update regularly. All these things make social trading a good learning process.
And yes we make profits on social trading, just be very clever in selection of traders. Sudden high profit charts is not a good sign of a good trader but constant profits are.