How does copy trading go wrong? Where is the catch? | Forex Factory

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How does copy trading go wrong? Where is the catch?

  • #1
  • First Post: May 29, 2013 2:08am May 29, 2013 2:08am
Following the winner's path is a key to success in anything we do.

Copy trading is something that is similar to the above point.

A successful trader analyzes the market thoroughly and enters the trade. But we just copy trade? That seems to be too good to be true. Where is the catch in copy trading?
  • #2
  • May 29, 2013 5:29am May 29, 2013 5:29am
Are you talking about when you subscribe to a service with a copier that allows you to copy their trades directly to your account?
The catch is that the service that you subscribe to earns commission when it is winning, but the subscriber carries most of the risk in periods of drawdown.
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  • #3
  • May 29, 2013 5:40am May 29, 2013 5:40am
Try not to copy. Period. Learn to fish, rather than asking for fish. Imagine if the "expert" you are copying suddenly disappears, what are then going to do?
Learn to trade for yourself.
  • #4
  • May 30, 2013 1:44am May 30, 2013 1:44am
Quoting Bhoopalan
Following the winner's path is a key to success in anything we do. Copy trading is something that is similar to the above point. A successful trader analyzes the market thoroughly and enters the trade. But we just copy trade? That seems to be too good to be true. Where is the catch in copy trading?
This is the erroneous statement and why copying trades fails.
  • #5
  • May 30, 2013 5:35am May 30, 2013 5:35am
Quoting PATR8der
Try not to copy. Period. Learn to fish, rather than asking for fish. Imagine if the "expert" you are copying suddenly disappears, what are then going to do?Learn to trade for yourself.
Thanks for all the replies. I would like to learn to fish only. I don't want to beg for fish. By copy trading I just mean copy trading alone. I'm also asking about following signal providers.

I read that Vladimir ribakov not only provides signal but also teaches why he gives that signal. I thought I'll be learning and making money side by side.

But still, just following signals are also a easy job like copy trading isn't it? I don't think it'll work that way. I doubt whether there will be some catch.
  • #6
  • Jun 4, 2013 12:06am Jun 4, 2013 12:06am
Quoting Bhoopalan
{quote} Thanks for all the replies. I would like to learn to fish only. I don't want to beg for fish. By copy trading I just mean copy trading alone. I'm also asking about following signal providers. I read that Vladimir ribakov not only provides signal but also teaches why he gives that signal. I thought I'll be learning and making money side by side. But still, just following signals are also a easy job like copy trading isn't it? I don't think it'll work that way. I doubt whether there will be some catch.

Sounds like you answered your own question pretty much.

Having a mentor and learning from someone is a great way to get started, but you gotta be able to learn how to trade on your own.

Personally I think that trading needs to be entrepreneurial and following someone else's signals seems counterproductive to that spirit.
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  • #7
  • Last Post: Jun 4, 2013 10:42am Jun 4, 2013 10:42am
Trading on the back of someone else limits your capacity to discover what type of trader you are and will therefore limit your profit potential
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