With day trading being perceived as one of the most profitable side gigs, a good majority of new day traders are scrambling to learn how to get started. Granted that the financial markets are constantly changing, there are so many basic concepts for traders to grasp. From pips, lot sizes, technical analysis to economic calendar, things can become overwhelming. And this is where copytrading helps.
Copytrading is a form of social trading where new day traders can systematically replicate the trades from the seasoned traders. By doing so, beginners in day trading can benefit from the expertise of others as they continue to develop their learning process in the financial markets.
On copytrading platforms, you will be able to see a list of signal providers with varying trade strategies, risk appetite, leverage levels trading in all types of CFD assets. Signal providers are ranked based on their performance, so it is easier for beginners to follow someone right for their capital size and risk appetite, while figuring out what is right or wrong when trading in a selected market.
A trader can also follow multiple signal providers to compare different strategies. All he has to do is simply allocate a certain amount of funds to copy from one signal provider, and another sum to copy from another signal provider.
Whenever the chosen signal provider executes a trade, the same trade is automatically replicated in all his copiers’ account, with the same proportion to the allocated funds respectively. Copiers do not have to keep an eye on the market 24/5, but rather sparingly monitor the performance of the copied trades. From there, adjustments can be made accordingly, such as adding or removing traders from their portfolio, or changing the capital allocated to copy a particular signal provider.
Sure, the past performance of a signal provider says something about the skill and knowledge, but change is the only constant as far as financial markets are concerned. It is therefore important for copiers to do your own research when selecting signal providers to copy, as past performance cannot guarantee future results.
For a seasoned CFD trader, here is an extra income stream for you. You can simply become a signal provider and lead other new traders to profit from the market together. By doing so, not only you make profits from your trading strategy, but also receive profit sharing based on the trading gains from the copiers that you attract. A win for you, and another win for the new traders too!
For the new traders, check out also what is CFD trading and how does it work.
As a client of VT Markets, you can simply login to the VT Markets app and create a Copy Trading Account with the following steps:
Do note that each user can only create one Copy Trading Account, however the good news is when you do have it, you can be both a copier and a signal provider at the same time.
To find suitable signal providers, first you will have to identify which asset you are trading. From there, just choose “Top Traders” of the relevant trading symbol and you will be shown the Signal Provider list. You can also use the pre-set filters to choose signal providers, they include Win Rate, Annual Return, Star of the Month or Low Risk and Stable Returns. Alternatively, simply customise the filter options based on your own risk profile.
On the other hand, you can also become a signal provider as long as you have a Copy Trading Account with VT Markets. Signal providers can adjust profit sharing ratios at any time, and such ratio will be applicable to new copiers only.
It is obvious that copy trading is a helpful tool for day traders to kick start their journey in the financial markets. With the trades being automated by simply replicating trades of signal providers, beginners in day trading can have more time to learn other aspects of the market in greater depths. So, wait no more, try the copy trading technology with VT Markets now.
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