If there was something to learn in 2020, then it is the fact that you can easily propel your earnings without hanging on to complicated forex trading strategies.
The number of forex traders who took control of their financial lives doubled (if not tripled). The most exciting part is that the rising millionaire numbers compose traders with inadequate technical trading skills.
All they do is apply copy trading.
This trend has made many novice traders question the ethics and sustainability of copy trading.
Here, you will find out the resistance against forex copy trading. Next, you will learn the good signals that copy trading may be here to stay.
By the end of the article, you should find it easy to ignore this trend or apply it if you want to change your financial status.
Resistance Against Copy Trading
Before diving into why some traders are against copy trading, here is what you should know about copy trading.
Copy trading is monitoring expert trade entries, take profits, and stop-loss orders and applying them to your trading.
Assume you are a beginner forex trader and want to massively from USDCAD forex trading without spending many hours understanding technical indicators.
You approach a renowned forex trading platform and create a trading account. Next, you buy the currency pair for the way a trader with a winning record does. You order your broker to set stop loss and take profit orders as the expert trader does.
That is how copy trading works.
If you decide to borrow strategies instead of actual trades, that becomes mirror trading. On the other hand, social trading lets you interact with novice traders and get release news on top of strategies and actual trades.
All three trading ways attract the following worries.
You Are Too Dependent
You fully depend on another trader to succeed. If they stop trading, you may not earn from forex trading for some time because you lack the technical know-how to make independent trades.
The broker May Negatively Influence Your Trading
Most brokers will not allow investing beyond particular money on one influencer trader.
Dishonest brokers may fake signals to fool you that certain traders’ portfolios perform well to trick you into trading with them. Besides, choosing a renowned broker, and influencer trader are hard.
Inadequate Gauging Factors
There is no guarantee that other traders will continue to win for you to earn high.
Despite the above challenges, the forex copy trading future looks bright thanks to advancing technology.
Increase in AI
Improving artificial intelligence is kicking away the speculation aspect of copy trading. Instead, AI makes copy trading a reliable investment opportunity for traders who seek financial freedom.
The analytical accuracy of the AI makes it powerful in following past and present trades. This is partly possible due to the uprising Internet of things, where bulk trades and monitoring are possible remotely.
MT4 is one of the artificially intelligent software for a typical copy trading platform. It keeps improving to ease your decision-making. It lets you track your money’s growth and advice on tools to apply for a boosted profit margin.
Blockchain Technology Trends
It is becoming easier to identify dishonest brokers and traders through blockchain technology. Here, special code proves who-owns-what and who-did-what in the copy trading platform.
2 Advantages of Copy Trading that You Cannot Take for Granted if You Want to Be Wealthy
Apart from technological advancements perfecting copy trading, it would help to utilize these advantages to realize financial endowment faster.
Copy trading relieves you from the burden of disturbing your mind with tedious technical calculations. Instead, you enjoy stress-free wins by following expert traders’ moves.
Stopping from over-investing in particular trades enables you diverse your trades and reduce risks.
Despite the challenges of copy trading, technological improvements are here to secure your trades and make you financially independent.