Copy Trading: Why It’s a Great Idea for Beginners

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Copy Trading: Why It’s a Great Idea for Beginners



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Copy Trading And What It Is All About​

The financial markets are becoming more accessible with online trading platforms and top brokers offering their services, so it is not surprising to see new investors taking advantage of this opportunity to explore the available instruments. There are more forex and stock traders today than ever before, and this is a good sign of a growing investment landscape.
Entering the now open financial markets, however, is not as easy as it seems. You still have to know your way around the traded instruments and the market as a whole. More importantly, you need to enter the market with a clear plan in mind. There are a lot of things to understand about the financial markets before you can make successful trades.
Many new traders turn to copy trading – and the broader social trading networks in general – for help. You too can learn about the financial markets while copying the trades of other, more experienced investors. But is copy trading a good idea?

Learn from the Best​

Copy trading allows you to copy the trades of top investors on the market, but it doesn’t stop there. You still maintain complete control over the trades you make, including when it comes to deciding which investors you want to copy and how each trade is adjusted to your portfolio.
This level of control makes copy trading perfect for helping you learn about the financial markets you are entering. Rather than reading articles and relying on other resources, you can learn directly from top investors while benefiting from their trades at the same time.
Copy trading also lets you be a part of the market in real-time. You can apply the same technical indicators as the ones used by top investors, follow fundamentals from the same sources, and learn about the trades being made based on analysis and the usual decision-making process.

Allows You to Invest with Limited Knowledge​

One of the biggest advantages of copy trading for beginners is that it allows new traders to start investing even if they have limited knowledge of trading and how the markets work. If you’re new to trading, it may be difficult to understand the challenges and pitfalls you should avoid and understand market behaviour.
People who first start trading currency pairs might be overly cautious at first, in order to not make mistakes. This makes the whole learning process much lengthier and will slow down your progression. But with copy trading, you’ll basically have a seasoned trader walking you through trades and showing you exactly which moves you should make. This will allow you to start making profits much faster than you would otherwise.

Saves Time​

People are often unaware of how much time it takes to devise a trading strategy, and how time-consuming market analysis can be. Fundamental and technical analysis will most likely dominate your time if you’re doing everything on your own, especially if you’re not familiar with in-depth analysis in the first place. But with copy trading, all the hard work will already be done for you, and you can significantly reduce, or even completely bypass analysis altogether.

More Options to Choose From​

Today’s copy trading services also allow you to tap into the same vast array of instruments that you can trade on the open market. Regardless of the CFDs and foreign currency pairs you are interested in, you can always find investors whose trades you want to follow.
This also gives you more flexibility in terms of shaping your portfolio. While you learn about the markets, your portfolio will continue to grow, and you stand a chance of banking profits along the way. There is no better way to learn than while profiting from real trades!

Easier to Get Started​

Copy trading doesn’t just make entering the financial markets easier. Getting started with your own copy trading account is also very easy to do, especially now that you have sites such as InvestinGoal helping you every step of the way. Via InvestinGoal, you can find reviews of popular copy trading services and platforms. These reviews help you choose the platform that suits your specific needs best. There are tips and tricks for beginners and even more resources to use as you learn about the market.

Better Diversification​

The added control you now have when copy trading helps you eliminate some of the issues associated with copy trading in the first place. Rather than taking the passenger seat and hoping for the best, you now have the ability to go deep into the trading strategy and find tactics that work for you.
In terms of diversifying your investment portfolio, for example, you are no longer limited to following one investor at a time. This means you can enter multiple markets, learn about them simultaneously, and copy the trades of top investors in each market.
The same can be said for risk management. In the old days, copy trading was often associated with a lack of risk management. This is due to many new investors taking copy trading as a way to make money quickly, which it isn’t. The more you are involved in managing your portfolio’s risks, the more profitable you will be in the long run.

 
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