In our previous article, we have discussed Forex copy tradings if you are new to learn about copy trading, you should read the previous article.
Copy trading is a kind of investment that allows people with a lack of trading knowledge to start earning money and diving into the crypto sphere by copying the deals of professional traders.
Copy trading allowed us to start earning + studying the market at the same time. When you put your money, you begin to control them. And of course, I got interested in why I got +30$, and one day I lost them. So there are two parts in copy trading; the first part is the leader trader who will control the trades and manage risks. And the other side is copying trades; if the leader gains, all of the copy traders will be gainers; if the leader loses, the same result also will apply to the copy traders.
Pros of the Forex copy trading:
- There is a good chance to get money if you can overcome the risks.
- A trader can get real knowledge about the live forex trading market.
- You can get passive income because you have to give more effort and time in other investment sectors.
- Sometimes a good trader lost their capital while trading because of their motions, so that you can overcome this situation by copy trading.
- In copy, trading risks management is more effective than manual trading because your experienced trader is more expert than yourself.
- The good thing is you dont need to have all of the trading knowledge to start copy trading.
- You will be free from the nerves wars, and you dont need much time to trade.
Cons of the Forex copy trading:
- A lot of people said that forex copy trading is like gambling. Although its not gambling, there are some reasons available behind this story.
- There are many experienced traders available in the world, but everyone is not earning profits daily. So its really hard to find out the best trader for copy trading.
- There is no risk-management opportunity for you; if your leader lost the trade, you would also lose the trade. You cant avoid the loss while your leader trader lost the trade.
- If you check the history of a leader of copy trading, you will see their profits are getting down after a couple of times because fraud brokers are showing fraud traders as experienced traders, and they betray their copy traders. This is the main cause behind saying its gambling.