Copy trading is an investment strategy that allows you to automatically copy the trades of professional traders. Instead of doing the trading yourself, you can link your account to that of an expert trader, and every trade he makes will be automatically executed in your account.

How does copy trading work?

1. Choose a trading platform that supports copy trading:

• There are popular platforms like eToro, Binance, ZuluTrade, and Bybit that offer this service.

2. Choose the trader you want to copy:

• Choose a trader based on his past performance, success rate, strategy, and risk level.

3. Determine the amount to be invested:

• You can allocate a part of your capital to copy this trader.

4. Automation:

• When the selected trader opens or closes a trade, the same action is automatically copied into your account in proportion to the capital you specified.

Advantages of copy trading:

1. Learn from experts:

• Opportunity to understand trading strategies from professionals and gain knowledge.

2. Ease of use:

• Suitable for beginners who do not have much experience in technical or fundamental analysis.

3. Time management:

• You don't need to constantly monitor the market; the trader does it for you.

4. Diversification of risks:

• You can copy more than one trader to diversify your investment strategies.

Disadvantages of copy trading:

1. No guarantee of profits:

• Even professional traders can suffer losses, so you are also exposed to the same risks.

2. Complete dependence on others:

• You may miss out on real learning if you rely entirely on copying.

3. Additional fees:

• Some platforms charge fees or a percentage of profits.

4. Sudden fluctuations:

• The strategies of the trader you are copying may not suit your risk tolerance level.

Who is copy trading suitable for?

• Beginners: Those who want to enter the world of trading without much experience.

• Busy investors: who do not have enough time to follow the markets.

• Diversification seekers: who want to invest their money with professional traders.

Tips before you start:

1. Choose the trader carefully:

• Review its performance over a long period of time.

• Pay attention to the risk ratio and the strategies he follows.

2. Start small:

• Test the service with a small amount to evaluate performance before investing a large amount.

3. Monitor performance regularly:

• Monitor your investments and change trader if the results are not satisfactory.

4. Don’t rely entirely on copy trading:

• Try to acquire basic trading skills to be able to make independent decisions.