At Last The Secret To Copy Trading Is Revealed

Here’s the thing…

Most of the talk I’m hearing out there about Copy Trading.  It’s just wrong… on so many levels…

 

Like

“I use it as a guide” a guide to what exactly?

“I’m learning to trade from it” REALLY?  HOW?

“It gives me confidence to place my trades” Until it doesn’t…

And then of course we have our final two.

“It’s a scam, it lost all my money”

“It doesn’t make money”

 

 

 Copy Trading The Basics

In order to get the best out of a copy trader you need to understand how it works.  Unless you are planning to have it fully managed for you like a PAMM account.  Then of course you just sit back and let it work for you as passive income.

Let’s look at the above statements and break them down.

 

“I use it as a guide”… this statement more often than not ties in with “It gives me confidence to place my trades”.  To me they’re saying one  and the same thing… I don’t trust my strategy enough to place trades without confirmation.  Which can also be translated as “I haven’t really got a strategy, well not one that’s written down” or “I don’t see the point in back testing” and “I paper traded it for a week and it looked good”

copy trading guide

 

“I’m learning to trade from it”… in most cases I would say “really… and how are you managing that?”  because In most cases you have no idea what that trader’s rules are that you are copying.  You are just copying the because of their results.  You have no idea how they are managing the trades, which normally leads to mis-equity management on your part.  Leading to…

 

“It’s a scam, it lost all my money”… If you have a copy of the rules, which tells you how each trade will be managed you can see for yourself whether it’s a scam.  You can also do your own equity management properly, based on what the system is capable of, and its max drawdown.  This will prevent you losing all your money.  Either way the final decision is always yours…

 

“It doesn’t make money”… this can be true and false at the same time.  It can make money for the trader running the system and yet still lose money for you.  If you don’t understand the trading system used by the trader, you can be losing money because you have a different broker with differing spreads, or you may have the same broker but are still getting different rates of spread.  This is particularly true when following a scalping trader who is looking for small amounts of pips.  This happens because he may be getting better spreads because he has a larger account, or because of the volume of trades he has already placed over time.

Your new broker with your new money may not be so kind…

 

Another reason many traders fail to make money with copy trading

Is their inability to properly trade a system…

There is a bias amongst traders that makes them think they’re great predictors of the future.  They believe it is their senses that picks a winning trade. However, this is not true.  It is always the system that picks winning trades.  It just can’t tell you which one the winner will be. Which is why you have to take them all…

You can’t cherry pick a system.  A trading system is designed to be profitable over the course of a year, as long as you take every valid signal…

I can’t tell you how many times I have heard successful traders say that their biggest winners were always the hardest to take.  Because they looked like dogs (British term for not very good).  But they followed their rules and took the trade.

cherry picking

 

Copy Trading 101

If you are following a proper trader with a proper system, who has the correct equity management and is creating profits year over year.  You have to take all the trades to get the same results.  Regardless of your opinion on each trade.  Which is why I say that copy trading is not a vehicle for learning to trade. But It can be …

A vehicle that helps you learn to be a trader for several reasons:

  1. People want to make returns on their investments yesterday. Instant gratification syndrome.  Which normally means that they place trades before they are ready.  They are trying to run before they can walk.  For this reason, we have found that students will learn easier and more efficiently if we trade their money for them.  You will earn and learn… just safely.
  2. You learn how to be in the market… and don’t fiddle. How many traders earn more money when they are busy or asleep?  Because you can’t fiddle with the trade when you’re busy or asleep.  As part of our Copy Trader we are giving away access to the Trading Room, where all the trades are placed and managed.  So, you can see for yourself a trader doing nothing but follow his rules when the trade is in the red or the green.  A valuable skill to learn.
  3. Can visually learn the power of compound interest. Most people never get to realise this as they can’t see the forest past the trees.  For compound interest to actually make you sit up and take notice, you need a big account.  Traders being… well traders do the math all wrong.  Normally due to our favourite syndrome. We believe the hype and the rubbish that aligns with our instant gratification buttons.  And make plans to retire from our jobs or other source of income at the end of the week and live off our trading earnings.

And what happens when we do that… we try and make unrealistic returns in very short periods of time.  Putting ourselves under extraordinary amounts of pressure (stress) and we keep failing to move forward.  If on the other hand you can put your faith in a trusted copy trading service for a few years.

Then you can truly see for yourself… in your own account the power of compound interest.

 

Which is this

If you make 40% (Andres’ worst year to date) a year on a $20,000 account.  You will earn $8,000 a year with which to buy rice and water and barely exist.  However, if you take time and plan properly.  In a few years’ time you can be making 40% on a $250,000 account giving you $100,000 on which to live…

And if he has his best year to date of 150% then with the same account you will have $375,000 on which to live…

And I forgot to mention.

This is completely passive income as you really have nothing to do but watch your account grow.

Meaning you get to do what the bleep you like as all the bills are getting paid…

Get Your Brochure here

Sign Yourself Up here

Or for more details please contact

Andres – trader@specialfxacademy.com

Or myself – callum@specialfxacdemy.com


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Callum McLean

Co-Founder and Trading Psychologist at Special FX Academy
Trading Psychology Coach and Certified NLP Coach. It is my belief that trading is 99% Psychological. And it is by understanding and improving your psychology, that you can be a successful trader. Success is a formula that everyone can and should learn.
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