Copy Trading is a Revolutionary Idea.
What If I tell you that you can Trade like a Professional without learning how to Trade like a professional trader?
What If I share with you all the trades in real time that are carried out by professional share trader.?
Copy Trading in simple words is copying & replicating the trades of the successful professional trader and making money in the stock market.
“Copy trading enables traders, experienced and new alike, to take part in the financial markets, by having their trades executed by experienced and seasoned traders with proven track records. This form of trading offers a unique solution for people who wish to trade and invest money with the aim of increasing their initial capital, however, lack the time or experience to invest in themselves. For this reason, brokers offer the possibility of copy trading. There are multiple platforms which offer copy trading, and while some are manual, other are automated or semi-automated, and all offer different variations of copy trading.” as mentioned in Avatrade.
Usually, brokers should not offer trading ideas, tips, or any other type of recommendations in the share market. When it comes to copy trading you are replicating the trades of successful stock traders and creating wealth for yourself by leveraging their expertise in the stock market.
In this format of stock trading all the partner of the trade win. There is nothing wrong in this format of stock trading importantly all the partner benefit:
Why Do People Think Copy Trading is a Good Idea?
Share market Tips in the Indian Stock Market are very popular among people who have not succeeded in the stock market.
The promises that the stock market tips provider give are extremely tempting and hard to believe that it can be true. But not everyone is as intelligent as you. Which I assume since you are reading this article.
Most of the time the share market tips provider are not carrying out the trades themselves. Secondly just to make some money in form of fees a larger and hard earned amount is put at risk.
This leads to any Tom, Dick & Harry providing tips in Indian Share Market.
This nuisance was curbed to a large extent when SEBI introduced only registered or authorized analyst are allowed to give “buy” or “sell” recommendations.
Still, the trades are generated from non authorised traders. More important, ly trade tips are given from trader who themselves are not very successful in stock trading.
This is when Copy Trading Comes into play.
Rise of The Copy Trading
Copy Trading you get to listen to Successful trades of backtested, profitable traders and live stock trading ideas. Exactly from the horses’ mouth.
Stock trader in the share market appreciates this over the share market tips because they are able to see, monitor and replicate the trades which are carried out by the professional trader.
This is what lead to the rise of the copy trading although in a very gradual manner but over the period of time it’s spreading.
Advantages of Copy Trading
There are three people involved in this format first is the share broker, second is the professional trader and final is the naive trader or the trade who is going to copy the trades.
- The stock trader who is naive or beginner can you this format of trading for either replicating the trade or learning from the trades of the expert. Either way either he learns or makes a profit from the trade. One of the main advantages to the stock trader is he doesn’t have to sit in front of the system the whole day, unlike his counterpart. For all the above advantage he has to pay some fees apart from the brokerage.
- The Stock Broker get a new client for this setup and also earn brokerage from the continuous trading activity. Moreover, since he is guided by a professional trader the chances of loss are minimal and he stays long with the brokerage house.
- The Professional trade who trades is replicated by everyone get a standard fee pre-agreed between him and stock brokerage house for every new stock trader that follows him.
Zerodha account holder has the special privilege to be part of such a concept under the name Open Trade.
“Real-time trade updates from profitable traders to improve your trading decisions. Pick & follow traders based on their trading style & verified profitability report. A great way to improve your own trading skills. Only open to Zerodha clients with Lowest Brokerage in town.”
Open Trade is a Special privilege to Zerodha Account Holders only.
You can choose from many professional traders based on their historical trading activity.
Each Professional trader can be drilled down and looked at their experience, average capital, profitability, how many people follow their trading, etc.
The Professional Traders trading activity is even more drilled down to take precise copy trading decision as to whom to follow.
Even if you are a victim of low quality or fake tips which you would like to change. And you can’t resist yourself from stock trading tips upgrade your self and start an open trade.
You can also read another review of OpenTrade.
Over To You
Following the wrong guru can take a toll on yourself emotionally and financially. At the same time following the right guru in finance can change your life.
There is no one way to sure shot success in the stock market. Nevertheless, a good way can increase the chances of success in the share market.
Follow the right trading strategy with a successful trader and ensure that you don’t lose your hard earned money. Investors always had too many options to follow while investing but now with an increase in social investing similar opportunities are there for traders too.
Let us know in the comment what you think about copy trading and your experiences.