Only by being careful can you be at ease

Written by@鼠猫猫   click to check the original article

Hello everyone, I am very honored to receive an invitation from FOLLOWME community to talk about COPYTRADE.

As a ten-year “loser”, I have come across countless failure along the road. It's nothing more than good luck that I am still trading today. I am all alone after my fellows left the market.

Therefore, I can serve as a living proof to remind everyone at all times.

The following content is purely my personal thoughts. If you can get anything out of it, it will be my greatest honor.

ONE

What copytrade really is, simply put it, is to let some people get rich first and the other get rich later. Therefore, it must be feasible and realistic.

From community big data statistics, we can tell that the profit ratio from copytrade accounts is indeed much higher than that of independent accounts.

It's just that the existence of many pseudo-rich and people who are eager to get rich has made the copytrade environment more complicated.

TWO

The secret of trading is not technique, and many people may have fallen into misunderstandings.

Maybe you go to a training school where you pay tens of thousands of tuition fees. After a few years, you can use this solid skill to make money and you can teach many apprentices to make a living as well. What a practical knowledge.

When I first traded, I also had the same thought, thinking that if I worked hard for three or four years, I am able to make money just as easy. Yet wrong perceptions will inevitably bring tragic results.

During trading, many people are either all-in, or discourage or even worse that start to deceive the newcomers.

Trading itself is a process of re-awakening from the heart.

Restricted by the times, society, family, education and other comprehensive factors, such a self awakening is as difficult as to being a top student in the university.

Trading for five or eight years does not mean that you can profit from the market, and what’s worse is that if you do not find the core of the problem, it will be more tragic than a novice's loss.

THREE

Similarly, copytrade is not simply choosing an account that makes money, subscribing, and then making a fortune.

The word "copytrade" makes people selectively ignore many important messages.

It's like the line in a movie-follow you, I will have food.

Yes, but the food could kill you. Such kind of copying is life-threatening.

From what i see it, copytrade is a kind of social interaction, and such an engagement is secretly done.

In real life, when we make friends, it will take at least half year to get to know each other, so that we can be sure that we get along with each other. While doing the copytrading, many people choose those profit signals that may have only been running for one month or two. The reason behind it is nothing more than that one is greedy and eager to make quick money, which is no different from a gambler.

Since copying is to entrust your money to others, you must be cautious. When you lose money with copytrade, you swear the signal providers, denying your own negligence. You might be thinking why you were so wrong to believe in this signal, you think it’s not your fault, you should blame the signal provider.

For copytrade, the follower takes the initiative, so follower can’t blame everything on the signal provider. As long as you have this attitude and carefully filter, you will always find the signal that suits you best.

To copy signal is to admit that someone can do better than yourself.

Such a recognition is surrender to some extend. The more you believe the surrender is true, the better the copytrade effect will be. If you have much doubts, the effect will be greatly reduced.

If we pay attention to the weekly reports published by the community, it is not difficult to find best copytraders with the most profit, who choose to believe in the signal providers without always being suspicious.

Not just in copytrading, almost in all works of life, those who create miracles are all with sincere confidence and great patience.

FOUR

From my own experience, traders usually have the following mentality in different stages:

1. Only know copytrade can make money, but unaware of the risks

Generally, this situation only occurs for newcomers who have just come into contact with the trading. Newcomers usually have good luck, so many of them might actually make good money at the beginning.

2. Know that copytrade can make money and is aware of the risks, but unfortunately the awareness is not deep enough.

At this stage, trader comes from curiosity to learning, which is a stage that they taste loss. With learning, traders will find that trading is not that simple, and they keep thinking they are making progress, but is quickly been proven wrong by the market.

3. Know that you can make money and understand the risks, but knowing is not doing.

Knowing the risk, but one continues to place a reverse order. Close order when making a little profit. Knowing that taking it slowly is the best strategy, but one just couldn’t help to enter the market.

At this stage, people are very painful. The pain stems from the conflicts in mind. A restless heart is far more frustrating than losing money. Many traders leave the market at this stage.

FIVE

As signal providers, they may also have completely different trading philosophy.

From the trading methods I have come into contact with, there are probably the following:

1. Boost small gains with big money

2. Short-term trading to earn commissions

They can operate dozens or even hundreds of orders in one day, and each time the profit is as little as one or two points to as much as seven or eight points, and the profits are often lower than commissions.

3. Use Martin

Martin is a big concept, and the core of it is actually two words: thin cost.

In order to reduce costs, sufficient reserve funds are needed. Such a strategy will undoubtedly bear much risks.

4. Multi-currency hedging

There are three-currency hedging and multi-currency hedging, which also requires sufficient reserve funds.

5. Swing trading or medium to long-term trading

In fact, only a few people have really persisted in this way of making orders. It requires not only patience, but also sincere confidence, because one will constantly face the shrinking of the floating profit, and break even. It’s a great challenge for copytrader to follow such a signal.

SIX

As far as I am concerned, there is no substantial difference between the advantages and disadvantages of the above trading methods. The pros and cons are often based on what copytrader wants.

Some copytraders followed Martin strategy to get rich, and some strive to survive with medium to long-term signal after 2 to 3 year bad market.

When it comes to the risk of copytrading, if you open position frequently, hold position for a short time, and have a high spread requirement, then you will always encounter accidents because the market is too volatile and the signal is not synchronized. For example, when the NFP releases or the Federal Reserve make decisions, the spreads of some platforms have increased tenfold or twentyfold. At this time, the signal source is making a profit, and the copytrader may still be losing money.

For some traders, everything goes well with no subscription. As the number of subscribers increased, he begin to be affected, struggling with the noise from subscribers, then he lose his ground and fail.

Some subscribers will choose to subscribe to many signals at once. These signals hinder each other and may bring smaller retracements and greater profits, but with greater probability, they will double retracements or even liquidation.

SEVEN

Finally, I have a few tips for copytrader.

1. Lower profit expectations

If you want to earn 10,000 from copying, lower this expectation to 3,000.

Many copytrader give up decisively if they don't see the benefits for a month or two. Even when farmer grows crops, it takes spring, summer and autumn from sowing to harvest, let alone trading. Those that grow fast are often vines, which cannot bear fruit in the end.

2. Prior to subscription, talk to the signal provider

Signal provider’s thoughts will directly determine the final outcome of the trading.

For a quantitative trader, the best program is his own strategy.

If it is just a purchased strategy, then the signal provider himself does not even know how to handle future risks and how to provide protection for subscribers? Such signal sources need to be discerned.

If the signal provider always talks about precision, stable profit, etc., you should be careful.

You need to understand a manual trader’s attitude towards trading and his own evaluation.

From my observation, the biggest difference between good trader and average trader lies in their willingness to accept impermanence, which is also very constant.

If you can't accept the unknown, you can't accept surprises.

This is also the biggest difference between real trading masters and pseudo masters.

Real master traders do not regard forecasting the market as an important task, nor will they fix the size of the profit. They will only control the risk in the operation of the market, without focusing too much on how much he profit. With this thoughts, there will be high profits coming.

3. Focus on the order that you copy

For all mature traders, the profit curve is bound to rise, oscillate, and rise like steps.

This is a good state, and it is a pity to choose to leave when trading is in volatility.

Several famous traders in the community all have months or even a year of drawdown, but they can achieve amazing result when the market turns. They are patient enough to wait for the right time.

After carefully selecting the signal, the account should only choose to subscribe this one signal, and follow it firmly.

If you have done enough homework in the early stage, your heart will not be tempted by all the things that happen after subscribing. You need to be fully responsible for yourself, without any regrets or anger.

4. Leverage comes with risk, regular withdrawal is the best risk control.

Who would have thought that when the Swiss National Bank announced an interest rate decision, the Swiss franc would instantly fall by several thousand points?

Who would have thought that oil prices would be negative during the pandemic?

In front of the black swan, all margins of safety are used to be ravaged by the market.

5. Don't make a desperate move to subscribe with all the money, try to observe for half a year before making copy decision.

This is the era when many individuals want to make quick money, and it is also the era when they temper their temperament best.

No one can succeed with little effort, and so is copytrading. Trading can be made easy. It’s not always a difficult journey.

I wish you all return to your true self, and enjoy your trading.

#COPYTRADENOW# #BeginnerTrader# #ForexEducation#