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Pros and Cons of forex copy trading

we have discussed Forex copy tradings if you are new to learn about copy trading, you should read the previous article.

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.

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