Tuesday, 7 July 2015

Copy Top Trader To Make Huge Gains

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Copy Top Trader To Make Huge Gains

10 Trading Tips To Find A Top Trader To Copy

After reading this forex blog from forex friend loan about copy top trader to make huge gains. You will know how to separate traders who are really worth copying from those who just got a short-term trading. This is not a strategy for picking traders, but a practical guide to go back on and help you simplify shortlisting of potential traders to copy.

Forex trading is a wonderful way to realize your financial independence. Literally, over 4 trillion dollars change hands on a daily basis in this, the most traded market on earth.

10 Tips On How To Find A Top Trader To Copy

1. Write Down What You’re Looking For
This is a very important first step and should at least be done to some degree before you even start looking at any traders.

As with any endeavor in a business, a basic plan is important and it’s all too often that investors blindly start browsing traders profiles and make decisions based on some metric that appeals to them in that moment. This simply doesn’t allow for intelligent diversification and will make tracking the performance of a portfolio difficult.

Some points to consider writing down might include the following:

How much risk are you looking to take?
This isn’t a matter of what you’re “up for”, but rather deciding how many traders you’d ideally want in your portfolio, what lot sizes you’ll be trading with and as a result of these factors, how much money you can afford to have to ride on a single trader. i.e. Some very basic money management.

Whether you are looking for frequent short-term trades, or are you happy to copy traders that hold on to trades for maybe a month at a time? This is going to depend greatly on your own preference & personality, and not necessarily be better one way or another. This will also impact the broker used by the trader and the average slippage on trades. If you opt for traders that trade often, then minimising slippage should be very high priority.

It’s also worth deciding on any other key points that are specifically important to you and the type of portfolio you’re looking to build. For example, whether a trader trades with their own money. This can have positives and negatives and should be determined again by the type of trader. Trading with real money could be considered great as the trader will be more cautious with his/her own money, but will also increase emotional attachment, a traders worst enemy!

There’s a lot to consider beforehand and whilst it’s not all necessary, try to at least establish an idea of what you’re looking for. It’s almost always better to come prepared!

2. Begin With Risk Management
All effective investments begin with risk management. The markets can be highly unpredictable, particularly when you are trading volatile assets like currencies. Wise traders seek to balance their investments with a diversified portfolio. If you are trading a wide range of assets, you will not be vulnerable to single losses, i.e., if one asset crashes, others will continue to perform and you will not lose out financially.

The old cliché about not putting all your eggs in one basket has never been truer – or more important. Aim to copy a range of Popular Investors who have diversified portfolios themselves. If you want to copy niche traders like currency or indices specialists, that’s fine. But also consider copying other people who trade commodities, stocks, and ETFs. Even a small number of carefully chosen copy trades can give you exposure to the wider markets and a balanced portfolio.

3. Review Each Popular Trader's Public Profile And Stats
Unlike other Social Investment Networks. Every serious trader who opts for social trading has a public profile with his real name and picture that any other trader can look at. This doesn’t contain any sensitive information like personal details or account balance, but it does show their trading activity and statistics.

If you’re thinking about copying someone, it pays to check him or her out properly. This is just another aspect of risk management and is, in fact, basic common sense. Unfortunately, some traders don’t take the time to do their due diligence on somebody whose investments they are planning to copy.

Copy Trading Checklist:

Time On Platform – You should avoid young accounts.
A Number Of Copiers – A big number of copiers is a good sign but doesn’t provide 100% security.
News Feed Activity – Is the trader active and shares valuable info?
Personal Portfolio – Is it diversified or specialized?
Stats – Look out for old open trades that are in the red!
Risk Level – Avoid big risk numbers (6+) unless you are super sure about the trader

4. If The Numbers Look Too Good – Be Cautious!
Be careful with numbers that look too good as 100% perfection is not possible in trading. Losing trades are a part of the game, even for the best traders. So don’t be alarmed by separate months that are in the red. It all comes down to long-term profitability.

5. Check The Editor’s Choice
Editor’s Choice is one of the special features. It showcases a weekly selection of top Popular Investors who have caught the eye of own trading experts. You can see a picture of each PI, complete with key info from their profiles and a summary of their trading and strategies. Editor’s Choice is a great way to check out Popular Investors who are currently highly rated and get your first insights into copy trading.

6. Avoid “Young and New Traders Accounts
Many Popular Investors recommend that you do not copy anybody with less than six months on the trading platform. They reckon that half a year is the minimum amount of time to see if somebody is consistently successful and not just lucky.

Long-term results don’t lie. Any trader can hit a lucky streak or find niche market conditions that offer a string of gains. Only the truly skilled and knowledgeable can achieve good results on a consistent basis. Don’t be put off if you see some losses or poor months on a Popular Investor’s Stats. Serious traders expect some losses and are prepared to accept them and learn from them. Many good traders experienced losses during the big market downturn of January and February 2016. What you’re considering is the bigger picture and looking for a pattern of overall gains.

7. Stay Informed About What The Popular Investors Are Getting Paid For
In the first versions of the copy trading platform, traders were paid for the number of copiers without much quality checking of the copiers. Some traders obviously used this and manipulated their statistics by creating fake accounts with demo money in order to bulk up a number of followers and copiers.

These tactics are still used on some other platforms so check these issues before copying!

8. Watch Out From Scaled-Out Trades
Some traders don’t close their losing trades as these would damage their profit statistics. So they simply expand the Stop-Loss and leave the losing trades open. You can look for this in their Portfolio tab and see the open dates under each individual position. If there are several losing positions with old dates that are still open with large Stops that is not a good sign.

9. Protect Your Funds With Copy Stop-Loss
When you open your first copy trades, it’s unlikely that you’ll be able to monitor them on a full-time basis. If you’re a mobile trader (and we strongly recommend that you should be), you can log in regularly. But even this is not always practical. A good copy trade is often a long-term investment. Some traders let copies run for months or even years.

10. Ask For Advice And Support From The Traders You Trust!
The Internet is a natural home for con men, opportunists, and scammers. Unlike other Social Trading platforms that are full with anonymous “pro traders” with fake names. Popular Investors have verified accounts and 99% of them have also real photos (because you can even filter out the ones without photos in the advanced search).

If they see that you’re genuinely interested, they will often take some extra time to help you to learn more and improve your own trading.

Many of the Popular Investors have advanced on their own merits, beginning by copying other traders and learning from them, so they can speak your language and explain difficult things in an understandable manner, unlike many books and academics.

Copy Top Trader To Make Huge Gains