Copy trading represents a novel approach to investment, yet surprizingly few traders know about it. It allows individuals to mimic the strategies and activities of seasoned traders in the stock market. This method not only democratizes access to expert trading insights but also simplifies the trading process for those who may be less experienced.
Copy trading is more or less what it sounds like. At its core, copy trading is a transparent process where you select a professional trader whose strategies and performance align with your investment goals. You can then replicate the chosen trader’s movements in your own portfolio by simply copying their moves. Say trader you’re following buys 100 shares of a particular stock. As a result, you’d also buy 100 shares of that stock. If they allocate 5% of their portfolio to a specific stock sector, you’d do the same.
Advantages of Copy Trading
Copy trading creates opportunity to leverage someone else’s investment knowledge and experience. You don’t have to analyze stock market movements or trends to decide which stocks to buy, sell or hold. You can simply follow another investor. Say you’ve picked someone who consistently generates high returns in their portfolio. As a result, copying them would theoretically allow you to do the same.
In addition to this, copy trading is largely passive. You’re delegating the difficult task of selecting investments to another else. You don’t need to spend hours studying the market to make money from your portfolio. Since the professional trader is in charge of making investment decisions, risk management is also carried out.
According to Wikipedia, copy traders fared better on average compared to traders who were trading manually themselves. It’s also important to note that copy trading is 100% legal, just exercise caution regarding the trader(s) you plan to copy. It’s also usually advised to dedicate just a portion of your portfolio into copy trading, and further dividing it among several traders.
What we do at Moment’s Trading
Consider this platform as a way to jump into Copy Trading. Whether you stay as a free user or join Premium, our discord server will still be a great social platform allowing you to connect with other traders, which will ultimately be beneficial to your trading.
