It is a new dawn for digital trading, ever since the term “copy trading”, or “social trading” has launched an innovative option for advanced trading. The basic idea of it allows investors to trace existing trading portfolios. The possibility of gaining more substantial revenues of your investment is greater thanks to such an option, as you basically replicate another trader, by surfing his wave.
The Big Difference
New type brokers are getting in the scene and the big difference from traditional way of trading present more effective options.
Until now, investors were left wondering how to manipulate such a complex loop of ever-changing financial pool of impactors. But now they are offered a far better trading experience. Through Copy Trading, the investor doesn’t provide his funds to a certain single broker who spreads it as he sees fit.
The current alternative offers investors to open an account on the trading platform, and connect it to several chosen traders who work the scene. The process actually allows to automatically copy the traders` strategy and rely on their portfolio. Another additional advantage of this system reflects in the fact that the investor does not have to deposit his money in the hands of a third party, as the funds are constantly in his own possession.
The concept actually focuses on the account management parameter. The investors transfer their account wand to the traders they decide to copycat, and that enables them to follow the traders` operative performance.
Take kayaFX for example, one of current leaders in the social trading arena. Its technological platform is structured on a highly advanced development, which is set to offer diverse solutions and alternatives to investors` needs and requirements. It of course presents elaborated data base that includes news and analysis required for expert traders, as well as new investors, to keep bettering their portfolios.
KayaFX emphasizes its advantage by enabling investors to trade diverse cryptocurrencies, such as bitcoin, Ripple, Dash, Litecoin and Ethereum – against each other, on the same platform. Another feature which is set to enhance trading maneuvers is an Automated Forex Trading Robot, which is kind of a personal guide that strolls among traders.
Moreover, if an investor rather implementing his own strategy, he`s more than welcome to perform it on KayaFX. The website offers loads of current financial data and expert support, which help develop a personal portfolio, based on a user friendly platform. That is maintained by a user navigation operation, which has tested as fluent and easy to get familiar with, through KayaFX`s site.
As Bill Gates previously said: “Bitcoin technology is key”:
How Does the Replication Process Works?
There are two sides to this coin of process – the Signal Provider (the trader to be followed), and the investor (the follower). Once the investor has chosen which signal provider he wants to copy, the investor opens his account and starts observing the data on the trader`s performance platform. The copy trading process doesn’t end here, as each investor initially updates his account`s settings and perforations, to best manage it on the platform. That is why when a new strategy is offered, or an existing one is changed, the system modifies the new data according to the investor`s personal settings.
How to Choose Who to Copy?
When you enter the copy index platform you need to know where to start and how to properly connect to the signal providers you are interested in. In order to know how to navigate yourself among the portfolios, you have to check out the characteristics and parameters of the traders. You can do it according to their popularity on the platform and also according to trading categories: basic analysis, indicators and price action.
These top 3 categories show the main trading methodologies offered as a procedural performance, and include subcategories that are used as additional factors. One paramount sub-category relates to the time factor, on which traders rely. You have long/short term traders, swing traders (ones who trade on a daily/weekly base action), day traders and scalpers (ones who trade on a second/minute base action).
These sub category relates to the personal statistics of the signal provider: what is the winning percentage, what is the trade action on average, what are the risk/revenue values? For example.
There is a lot to take in, there`s no doubt about that, but copy trading platforms, with KayaFX included, offer the information, support and practice for new comers to engage in this dynamic arena: