Isn’t copy trading the best choice when you want a high income/hour?
(Assuming there are enough “good traders” so you can diversify your investment.)
If this is not the case, I would like to know why.
Thanks.
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There’s no denying the logic behind the idea of copy trading, its just one of those things which only works in theory and falls flat in practice. As you’re interested in going down this route I would definitely recommend trading the copy trades in a demo account. The results here would be very interesting to read here.
Of course, there are other fields in which you can always follow what the more successful people are spending their money on. In art, antiques, property etc. you will find you’re buying at the top price as it has already been bid up so far - time lag is an issue in short-term trading this way also. You can do this live in an auction.
If you copy-buy the best-selling car that other people have bought, you will end up with a Toyota Corolla. Its decent enough but it doesn’t do even one thing really well.
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Is this essentially the problem why large funds do not trade the same way small accounts do? The strategies may work with small amounts but when there is a large amount of volume trying to get in at the same time, the strategy starts to fail?
If so, how does this differ when others reuse the same EAs @Jckbt. Assuming that those using the EA will want the same entries and exits?
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Hi. Which EA do you recomend. Coz I’ven searching a good ea’s for a long time. I purchase many of thus I could’nt Get any good ea’s.
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Copy trading can work well for some. I too am interested to see how long some one has stayed with a copy trade investment. I tried some copy trading a while ago firstly with eToro then a Managed account (similar) I must have hit their lucky weeks, but after about 6 weeks a lot of positions were being held in the red.
Whilst platforms allow you to see performance of a trader that is all historic. They may have had a stunning set of weeks but when you sign up for them, they seem to loose it.
In the end I cut my losses. I went from $1000 to $1800 then fell down to $800. I’ve now devoted my time to finding a system that works for me. If I loose my money, I want it to be my own, and I am responsible for it.
I have spent a long time testing systems and reading into the markets, but for me that’s learning and understanding, no one can put a price on learning in my opinion.
I fully agree with the sentiment in this thread. Copy-trading can be a drag if you are just entering the market and have no clue about how things work around here. Many have lost their investments but I don’t blame copy-trading for this. I blame the lack of research and effort people just continue to ignore. Add greed on top of that and there is a recipe for disaster right there.
I’m using copy-trading as one of many sources of income. Normally, I allocate 10-15% of my investment funds into copy-trading and the results for the past year (and this one as well) weren’t as nearly as bad as one would think. On average, copy-trading has netted around 25-30% gains over the past two years for me and I’m even considering investing a bit more next year. I mean… just look at the top traders on eToro: financeillustrated.com/trending-forex/best-etoro-traders/
They range from 10% to 110% in yearly gains. If people would put more effort into research and trading history evaluation, I’m sure copy-trading wouldn’t sound as bad as it sounds right now.
So to actually answer the question in place - Why not copy trade?
There is no reason not to copy-trade if you are confident enough that you can conduct proper research. Start small and gradually increase your investment over time if things are working out for you. Copying one bad trader doesn’t mean that all of them are bad at what they do.
I won’t say it is the best choice but it is a good choice indeed. If you are doing good without it, you can continue doing what you are already doing.
I have been doing copy trading and it has worked fine for me up to this point. Most people think that copy trading is not good because you are basically following what another person si doing but what matters is that you do not have as high rusks as you would if you were trading on your own.
Hey! Don’t dis my Corolla! High mpg, low maintenance, and it turns on a dime. What’s not to love? 
Lol I’m just kidding. Not really offended. I just thought it was funny. 
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Amen, brother! I’m all for getting help and advice from those who have made it through, but good or bad, I want my trading system to be my own. It may take me a while to figure it all out, but in the end I want to be able to trade on my own terms. But then, I’m not in a tearing hurry to become profitable.
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It is not the best option to copy trade because most of the copy traders feel that they don’t need to learn forex because they can just do what another trader is doing and still make money. The limit themselves to another person’s ability without finding out if they can actually do better. Your own trading journey is the best journey.
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The logic to copy a profitable trader makes perfect sense.
The problem is that 99.9% of the traders that are presented by brokers as profitable are charlatans or lucky monkeys.
They call it “survivorship bias”, brokers know that concept very well while newcomers ignore it.
They tipically show you an attractive 3-18 months trackrecord that will collapse after your copy.
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The short answer is that copy trading can be extremely profitable. I’ve found great success with a handful of carefully handpicked traders.
A few undying myths that I have seen spreading around across all forex forums:
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If traders are so good at trading, why are they providing signal services?
The same thing can be said about fund managers. Why don’t they just trade billions of dollars of their own? The perks of providing signal service is obvious if anyone even bothered to look deeper into it. Would you rather risk your own capital of $10,000 and earn just 20% per year, or multiply that by 10 or 100 times by risking others’ money and earning commission/fees instead? -
Copy trading doesn’t work.
Most people whom I’ve seen complained were the ones who got their accounts wiped out within days after falling for obvious traps or simply being too greedy: copying traders who earn “thousands of %” per month with massive floating losses and drawdowns; copying traders using a different broker; manually copying trades and getting the timing all wrong; too small of a balance and risking way too much per trade. The list goes on. -
EAs don’t work, manual trading is king.
That’s what people who buy cheap (or free) EAs tell you after having their accounts wiped out within days. Half of the fault lies in these broken EAs, the rest lies in the poor understanding and money management of the users. I can guarantee you that there will be little room left for manual trading in the near future. First learn the basics of trading and money management, then pay to have your own strategy built into EA. You’ll find success.
Where are you copying?
What are your results?
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manual trading is definitely the best way to go. for copy trading, what are your thoughts on traders from myfxbook? there are traders of whom i’ve seen good results.
Everywhere. The traders matter more than the platforms. 10 to 15% ROI monthly.
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Well, I don’t think so. I know many traders see copy trading as an easy way of making winning trades. But that’s not the case always.
200% agree
For How much time? What is the leght of your copier-investor trackrecord?
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Be interested to hear about this too. I am about to test one next month too.
Share how that went once it’s done? I’m curious.