Good morning community!
You may have noticed that I recently shared some articles where I talked about copy trading and profit sharing.
If you missed them, I encourage you to read them before continuing this article, so you will understand it even better. I’ll leave you with some links below:
Today we’re going to do a quick review of the main differences from copy trading and trading signals, so you’ll also have a way to understand what can be better for you and your investment strategy.
Like any form of trading, online trading can have its risks. Sometimes you may make profits whilst other times you may make losses. The most important thing to do is to educate yourself about the type of trading that you do, the risk management and strategy.
A few years ago, when I first became interested in trading, I also approached both methods. In the article I will tell you about some tips after I had some experience.
Trading Signals
How do they usually work? A trader decides to share his knowledge and trading ideas with the public. He’s doing that conveniently through social media or usually through Telegram or Discord channels.
Signals usually have an entry point, sometimes also stop loss and take profit levels. Size is often not specified and that’s understandable as account sizes may vary. The trader may write the % of risk for the trade. You can get anywhere from a few to hundreds of alerts every month, depending on the strategy of the trader. The idea is that you pay a fee to this trader that give you the access to the trading signal channel and you copy these signals to your trading account. You pay this fee whether you make money or not.
When I started to study trading, I was suggested to follow traders who were giving signals, who had been doing it for a few years, to start to understand more about it and start to make some money through them while I learned the basics.
The idea was also good, the problems were other. The first was that I did not know these traders, sometimes they made good trades but many times they were not profitable, and they did not show a verified account of theirs with profitability historicity, such as myfxbook. The second problem was that I often focused more on seeing the signals sent by them than on learning how to trade myself.
Of course, that’s not to say that all signal rooms are not good, but you must be careful and do your own research on the historicity of the traders and their profitability, as well as figuring out how to integrate this system into your investment diversification.
Don’t think only to copy and paste signals while you drink your cocktail in a white sand beach at the Bahamas.
How about Copy Trading?
Copy trading allows you to choose a specific trader whose trades you want to copy. You can choose to follow different traders at different times, follow multiple traders, or follow the same trader all the time. By following sophisticated traders, you can understand their trading strategies and begin to understand the rationale behind their trades.
Unlike trading signals, in copy trading, the process of opening and closing trades is automated, precisely by copying the trader you have decided to link your account.
And when we talk about copy trading, Zignaly comes in. My best experience is with this platform that I started following about 2 years ago. Trading and Copy-trading are great sources of income too. Although one must have time and money to put into trading, copy trading’s results can be interesting too and can be(come) even comparable to a respectable employment source.
In this article I won’t go into much detail about Zignaly, if you want to delve into how this copy trading platform works in detail, I’ll leave you the link to my in deep review:
recommend you register via this link and start trading. Remember, though, to use only those funds that you can afford to lose!
Would you like to know more about these two topics? If you have special requests, let me know in a comment and I will see if I can go into them in future articles.
Have you had any experience with Trading Signals or Copy Trading yet? If yes, have you had the results you expected?
New to trading? Try crypto trading bots or copy trading