If you’re new to trading or looking for a way to take your trading to the next level, copy trading may be the perfect strategy. Copy-trading allows traders to follow the trades of experienced traders and potentially earn profits from their successes.
We’ll explore the benefits of copy trading as a strategy for beginners in online trading Australia. We’ll also look at some of the top Australian copy trading platforms available today. So if you’re ready to start making money from your trades, keep reading.
What is copy trading, and how does it work?
It is a type of trading that allows traders to copy the trades of other traders. When you copy trade, you’ll automatically copy the trade entries and exits of the trader you’re following. Copy trading is a great way to learn from experienced traders and potentially profit from their successes.
There are two main types of copy trading platforms available: social trading platforms and broker-operated platforms. Social trading platforms allow traders to connect and share trade ideas, and these platforms also help traders track their performance and find new trading opportunities. On the other hand, broker-operated copy trading platforms are offered by online brokers.
These platforms allow traders to follow the trades of successful traders within the broker’s community. Both social and broker-operated copy trading platforms have advantages and disadvantages. Social trading platforms tend to be more user-friendly, but they may not offer as many features as broker-operated platforms. On the other hand, broker-operated platforms often offer more advanced features, but they can be challenging to use if you’re unfamiliar with the broker’s platform.
The benefits of copy trading for beginners
There are several critical benefits of copy trading:
You can learn from experienced traders
Copy-trading allows you to learn from experienced traders. When you copy trade, you’ll have access to the trade history of the trader you’re following. It means you can see how they’ve approached the market in the past and what strategies have worked for them. You can also learn from the trader’s comments and analysis. It can help you improve your trading skills and develop your trading style.
It’s a hands-off approach to trading
Copy trading is a great way to trade without doing all the work yourself. You don’t need to spend time researching trades or analysing the market when copying trades; you only need to choose a trader to follow and copy their trades. It frees you from focusing on other things, like your job or family.
You can make money while you learn
One of the best parts about copy trading is that you can make money while learning. When you copy trade, you’ll earn a commission on the trades you copy. As you learn from the trader you’re following, you can also make money from their success.
It’s a flexible way to trade
Copy trading is a very flexible way to trade. You can choose how much time you want to spend on it and how much you want to invest, and you can also choose when and how many trades to copy. This flexibility makes copy trading an excellent option for beginners who want to start trading without wasting time or money.
How to start copy trading
If you’re ready to start copy trading, there are a few things you need to do:
- Choose a copy trading platform-The first step is to choose a copy trading platform. There are many different platforms available, so choosing one that’s right for you is essential. If you’re a beginner trader, look for a social trading platform or a broker-operated platform that offers features like economic calendars, designed for beginner traders.
- Find a trader to follow-Once you’ve chosen a platform, it’s time to find a trader to follow. Look for a trader who has a trading style that you’re comfortable with and who has a good track record.
- Set up your account-The next step is to set up your trading account. You’ll need to deposit money into your account and choose how much you want to invest in each trade.
- Start copying trades-Once you’ve set up your account, you can start copying trades. When you copy a trade, the trade will be executed in your account automatically.