For more than 10 years, copy trading has become increasingly popular among crypto traders. This is a helpful tool, especially suitable for less experienced Forex market participants, who can benefit from the decisions of successful ones they trust.
Today, some trustworthy platforms provide a copy trading service among other deals. The DotBig trading platform is one of them.
Copy Trading: Intro
Copy or social trading is a type of exchange strategy that has gained popularity over the past few years because the role of the community in this niche is very large.
With its help, novice traders repeat the deals of professionals and follow their strategies. This innovative concept reduces the gap between experienced and inexperienced users: beginners can benefit from the knowledge and solutions of the expert investors.
Copy trading is based on a simple but effective principle: novice ones copy the trading strategies of experienced traders in order to create similar positions and repeat potential profits. This approach not only reduces the risks caused by a lack of knowledge about the market, but also helps to study and better understand the dynamics and process of trading.
This trading type uses advanced technology platforms and the principles of social trading. Thanks to this, it unites experienced traders and those who want to copy their strategies.
In order for social trading to be successful, follow these steps:
- Select the appropriate platform
First, you need to choose a reliable platform with a good reputation. These platforms act as intermediaries connecting experienced traders with subscribers who plan to repeat their trades.
- Search for successful dealers
By joining the copy trading platform, investors can view lists of experienced ones and their portfolios. Platforms usually provide detailed performance indicators, historical data, and risk profiles based on which an informed decision can be made.
Investors can choose one or more traders whose strategies correspond to their investment goals and an acceptable level of risk. At the same time, the chosen platform should support effective integration so that investors can automatically repeat the positions of the selected trader in their portfolios.
- Continuous monitoring and adjustment
Although exchange deals are mainly copied automatically, investors should keep a close eye on their portfolios and the strategies of the professional traders they subscribe to. Regular monitoring and adjustments are necessary to ensure that the copied transactions meet the long-term goals of a particular investor.
Transaction Costs and Fees
Before choosing a copy trading as a method, it is necessary to study the technical conditions of the process.
Trading involves certain costs in the form of a commission for opening or closing a position, spreads and swaps (a fee for transferring a transaction overnight). If the supplier trades using an intraday strategy or uses scalping to make online deals, the size of the spread can significantly affect profits. If the investor has it at least one point higher than the signal provider, the statistics can be significantly distorted. In some cases, profitability can become negative even when working on a profitable strategy.
Some copy trading services provide that the distribution of commissions when copying a transaction is not in favor of the recipient of the signals. For example, the spread will be larger, which will also affect profitability.
Therefore, it is crucial to choose a broker that provides optimal conditions for premium trading.
DotBig Copy Trading Benefits for Traders
Social trading is a relatively new way to make money by copying successful trades of professional Forex market participants. Novices can use the experience and skills of experts to upgrade their own skills. Also, copy trading is beneficial for the professionals themselves, as they can make money from the fact that their trades are copied.
Advantages of copy trading with DotBig
Here are the most obvious advantages traders will get using copy trading from the DotBig broker.
- Convenience
Newbies can use DotBig filters to quickly find a particular trader with the necessary statistical indicators.
- Safety
Novice traders can use Stop Loss and Take Profit functions in the copy trading process to reduce the risk of losing their deposit.
- Flexibility
It is the ability to adjust the copy trading ratio and set the desired transaction amount when it is necessary.
How to start copy trading with DotBig?
To start with DotBig exchange, the user needs to follow these steps:
- Pass registration. Complete authorization and verification to create a personal account on the DotBig site.
- Top up your account. Make an initial deposit using any of the suggested methods to start copy trading.
- Choose a trader. Study the leaderboard and pick the investor with the best trading statistics.
- Copy deals. Copy the trading strategies of successful exchange participants with one click and get the profits.
That’s all you need to know about possibilities with the social trading platform. If you have questions, read DotBig reviews.
Tips to Copy Deals and Make Money
Here are some tips for those who want to make money on online investments using copy trading:
- Learn more about the strategy used by the broker: this should be understandable.
- Study the issue of commissions: will this negate the profit with the chosen strategy?
- Diversify your signal portfolio: distribute funds in such a way that copying takes place on different accounts and with various traders.
- Manage risks: determine how many trades will be opened and create a sufficient reserve of available funds in case of drawdown.
If you still have questions about the topic or are interested in social trading using DotBig, ask them to the support managers. The DotBig broker experts will help you deal with social trading and select the best solutions that meet your requirements and budget.