A Stress-Free Way to Start with Copy Trading Metatrader 4
If you’re reading this, then you’re probably interested in copy trading. Perhaps you even know a thing or two about what it is and how it works, which is great. On the other hand, if you’re completely new to copy trading, then you may benefit from reading this guide.
But here’s a simplified lowdown: copy trading is an investment method that allows you to replicate another trader’s positions. That other trader is usually a more experienced and knowledgeable person who can create a profit-making strategy. That’s why such people are popularly known as strategy providers.
All you have to do is manually or automatically copy their strategy on your account. When they open a trade, so do you. And when they earn a profit, so do you – without lifting a finger. In other words, you make money off someone else’s trading skills.
The downside of copy trading is that when your strategy provider makes a loss, so do you. For that reason, you want to choose a strategy provider who makes more profits than losses. For example, the all markets trading system has a forex expert whose win rate is 82.07%, which is impressively good. If you follow his strategy, you have an 82.07% probability of making a profit and only a 17.93% probability of making a loss.
How Does Copy Trading Work?
The copy trading process is pretty straightforward. You simply need to sign up to a trading platform like the All Markets Trading System and then select a trader that you like.
Ideally, that trader should be experienced enough to develop winning strategies. You’ll, therefore, want to analyze their profile first to ensure that they consistently make more profits than losses.
From there, you can go ahead and link your account with that of your strategy provider. Whenever they open trades, the same actions will automatically be copied on your account. However, you will be the one to determine how much money you wish to invest.
Copy Trading Example
Assume that you spot a seasoned forex trader who has been earning over 10% for the past 12 months. You peek at their profile and like their strategies, so you initiate copy trading. Your account will be linked to theirs so that every one of their actions will be mirrored on your account.
Let’s say you invest $500 into your chosen trader, who then opens a buy order on EUR/USD at 1.073. The trader further risks 5% of their capital with leverage of 1:50. As soon as they open that position, your account will also place a buy order with the same position.
In other words, you’ll open a buy order of EUR/USD at 5% of your capital, which equates to $25 (5/100 x $500).
Now, assume that a few hours later, your chosen trader closes their position at 1.104 – a 3% gain. On your stake of $25, you’ll have made a profit of $0.75. But since your strategy provider leveraged 1:50 (which means you also had the leverage of the same), your total profit from your trade will amount to $37.5.
Just like that, you’ll have actively traded forex without breaking any sweat. Your chosen trader might decide to open 10 or more positions within the week and your account will copy all of them.
Whenever they make a profit, so do you. The difference is that you’ll be doing it without any skills, experience, or market analyses. Your chosen trader will be making those crucial decisions on your behalf from a knowledgeable and experienced point.
Note: although this example is for forex, you can use copy trading in all sorts of markets. That includes long-term investments like funds and stocks.
Copy Trading Essentials
Knowing the essential components of copy trading will help you to start using the strategy with little to no stress. Below are the ones to keep in mind:
Initially, copy trading was used in the forex market more than in other markets. That’s because forex is a huge market that requires relatively more expertise, which most traders do not possess.
However, nowadays you can use copy trading in pretty much any market. That includes stocks, funds, bonds, derivatives, and options. Nonetheless, copy trading MetaTrader 4 is still more popular in forex than in other markets. And it now includes cryptocurrencies like Bitcoin, Ethereum, and many more.
Generally, your choice of the market depends on the type of investment you want. If you’re going for a short-term investment, then you’ll want to explore forex over other markets.
There are lots of trading platforms that offer copy trading services. You basically sign up and then you can interact with other traders who use the same platform. From there, you can pick the ones you like and copy their strategies.
Think of it like Facebook. Once you open a FB account, you can befriend all the people you like and view their activities. Only that in this case, you earn money from copying their trading activities.
All Markets Trading is an excellent example of a good trading platform. It’s easy to sign up and you get to interact with other more experienced traders through the IX Social platform.
In case you want to explore other copy trading platforms, you can have a look at eToro, ZuluTrade, and AvaTrade. The problem with these alternative platforms is that most of them will want you to invest your own money from the word go. eToro, for example, requires that you start with at least $200.
That’s where all market trading gets the edge. You can start with a 7-day free trial where you don’t spend any of your hard-earned cash.
Besides, the All Markets Trading System uses copy trading MetaTrader 4 (MT4).
Alongside MetaTrader 5 (MT5), this third-party program offers the technology that online trading companies like All Markets Trading use. Unlike MT5, copy trading MT4 was designed specifically for forex. MT5 is more suitable for CFDs, futures, and stocks.
Therefore, if you’re looking to get into forex trading, then make sure to choose a platform that uses copy trading MT4. In short, choose the All Markets Trading System for forex.
All the good copy trading platforms have hundreds and thousands of experienced traders to copy from. Generally, you’ll want to pick a strategy provider who uses diverse strategies to invest in. That will help you to spread risk.
Speaking of which, copy trading is much like any other form of investing – it carries risk. Even the most knowledgeable and experienced trader will occasionally get it wrong. And if you copied their strategy, then you’ll make a loss when they do. The trick here is to copy strategies from providers who have the same risk appetite as you.
Is Copy Trading Right for You?
Now that you know what copy trading is and how it works, is it suitable for you? Well, it is if:
– You’re a complete newbie to forex (and other markets). In this case, you won’t need to develop any strategies, an experienced trader will do that on your behalf. Your only task will be setting your account so that it automatically copies that trader’s positions.
– You’re strapped for time. You may have the skills and experience to trade but lack the time to create your own strategies. If that’s the case, you’ll benefit a lot from copy trading because it will allow you to copy ready-made strategies.
– You want to earn passive income. Once you choose to copy another trader, there isn’t much else for you to do. You’ll just earn passive income every time your elected trader earns theirs. You can even spend the rest of your time engaged in other income-generating activities.
– You want liquid investment. Copy-trading – especially in forex – allows you to cash out any time you want. This makes it perfect for people who want fast access to their trading capital.
Start for Free
One great thing about the All Markets Trading System is that their trading platform allows you to try copy trading for free and without any risk. The 7-day demo account lets you invest paper money and copy strategies to see how they pan out.
As a result, you get to put copy trading to the test without losing a dime of your own money. And while at it, you also learn how to choose strategy providers. It is the perfect place to learn copy trading for seven days straight with zero risks.
Click here to sign up for your free run at copy trading.