Building a balanced and successful stock portfolio is a lot more than just buying stocks... It includes research, rebalancing, risk management, and taking profits at the right time.
Considering the difficulty and how much time it takes to build a stock portfolio, a new way of investment has become popular, which is called 'Copy Trading.' As the name implies, this investment method involves following other successful traders by copying all the trades they make. This process is done automatically through automated platforms and usually comes with a fee.
The steps involved in copy trading are given below:
That's about it... The system automatically opens and closes any trade on your account by mimicking the trading activity of the main account you followed. In return, a small amount of fee is charged for allowing you to copy the trades of a successful trader. So, in short, it is a win-win situation for both parties!
Since copy trading is all about copying trades of a successful trader, it becomes a lot more important to only choose a trader that matches your risk appetite and has a history of consistent returns.
Some of the factors that should be considered when choosing a copy trading account include:
Using these factors, you can easily find a good candidate for copy trading and make money successfully!