What Is Copy Trading?

National, January 2023: Trading forex is something that many dream about doing full-time. Regardless of whether you’re someone who has forex trading as something you’re interested in or if you wish to take your own trading full-time, you’re more than likely aware of how difficult it is to turn a consistent profit.

Trading is a cutthroat business where the winners make their money on the losers. When one is starting with trading, it’s safe to assume there is going to be a long and extremely steep learning curve. But the process of learning different setups and the like can be done by watching someone who is profitable and how they act in different scenarios.

There are many different services for this, and one of the most popular is OctaFX. Before you download the app and start trading you should read this OctaFX copy trading review to see if OctaFX is the right choice for you.

Copy trading can be a helpful learning tool

When it comes to trading there is a ton of different learning material out there, due to the fact that trading can be profitable for someone who manages to figure it out. It’s also common to sell various courses on trading online. Many people consider this a scam and a common phrase amongst profitable traders is “the only one you need to pay to learn is the market”.

But one needs to start somewhere. Jumping right into the graphs and trading is a good way to get burned extremely quickly. The 10 000-hour rule is never more applicable than when it comes to trading and being able to see how those that have put in more work than themselves conduct themselves during their trading can be a good way to gain some practical experience without having skin in the game for oneself.

Finding what traders to follow is difficult

At the same time, one needs to be able to find the best traders and follow them for a long period of time to try and gauge what they’re doing. At the same time, one also needs to be ready to study their setups and find what one looks for in the price action. Simply watching is not enough, as it’s important to be able to follow the information closely.

Copy trading should be approached with caution

Trading is difficult, and one can’t simply copy someone who is profitable and expect to see the same results straight away. But as previously mentioned it’s a good learning tool. But even the best traders regularly take losses. The nature of the market and its randomness means that one can’t expect to have a 100% hit rate of profitable trades, and copying a good trader during a slump can be devastating to one’s own trading account.

The other problem is that this person has more than likely spent years and years perfecting both their mental and practical strategy. As a novice, jumping right into someone else’s strategy is more than likely not going to be if you don’t follow them for many months.