Copy trader allows you to copy the trades of other traders. This is a function of the trading platform I’m using click here for more details (new window).
I thought I’d share with you my copy trader strategy. Basically it works like this.
1. Find trader that matches the trading profile I want, I choose Medium/High risk traders. Check their stats I’m looking for good returns and a positive % over 3 months.
2. Invest $20 US only in the new trader. UNLESS they have a lot of copiers and I’m confident then I might invest $100US straight away but that is rare for me.
3. Let them trade for me for a week and see how it goes. Watch them, I’m looking for silly losses. You can see how they are doing just looking at the total figure, if you start with $20US and after a week the trader is up to $25 then it’s worth putting more money into that trader.
4. If they fail to make money after a week (or they make very little), I’ll look to adjust all their trades and take them out so I can close the trader and give the money to another trader. Note that you should not just close a trader off, that will close all the trades, you want to make a small adjustment to each trade so that it becomes your trade, then close the trader. Then you have to manage the outstanding trades.
After a while you will get a good profile of traders, currently I have about 100 or so trades on the go at any one time thanks to the copy trader function.
Note that new investors really should think about starting with AT LEAST $100US that will give you 5 traders at $20 each. No more. If you click on the link below when signing up you will get another $50 US, so you can have 7 traders @ $20US and leave $10US for your own trading, which you should not do for real for at least one month.
To view a video about this click here