How to Copy Successful Forex Traders

Last year, several of the best Forex brokers introduced the concept of social Forex trading. The idea is simple: the best Forex traders engage their trades in the community, and other traders are free to copy their trading strategies. This is a novel idea, and one that allows inexperienced Forex traders to learn from Forex experts.

Many of the best social Forex brokers allow you to find traders to copy based on profit, risk level, and the number of other traders who copy a Forex trading expert. This makes it easy to find popular Forex traders to copy, but there are many things you need to consider when copying a Forex trader.

  1. “Popular” doesn’t always mean “best.” Most brokers allow you to see how many people are copying a Forex expert. However, the number of copywriters alone does not mean a strong entrepreneur. Many times, users flock to a trader after he or she has made a trade with a huge profit, hoping to score again. An entrepreneur can have thousands of followers, but that doesn’t mean followers get any money.
  2. Don’t copy a Forex trader just for the big return. As with the popularity of a trader, the results of a trader’s Forex trading can be quite misleading if not read correctly. One of the most reputable Forex brokers has many traders whose statistics show a 300% profit in Forex trading. This is a strange number, but you have to consider the number of trades and the amount of capital risk to get this profit. If you don’t have a large trading account, you may not be able to withstand the drawdown experienced towards large Forex profits.
  3. Check the risk profile. Most of the leading social Forex brokers will offer some form of risk measurement to a trader. While many of the high-risk Forex traders manage to get a lot of profits, the strategies used may not work for all traders. Beginning Forex traders, in particular, need to copy traders with a low level of risk so that a business does not risk their entire account.
  4. Diversify! Don’t risk your entire Forex trading account copying a trader. Instead, choose a few different traders and divide your money between them. This will reduce your overall risk, as only a portion of your account will be put at risk if a trader engages in a risky trade. Yes, you may miss a huge trading opportunity now and then, but steady Forex income is the goal.

If you keep these ideas in mind, you have a greater chance of successfully copying other Forex traders. Social Forex trading programs are a great way to start Forex trading, which reduces risk as new traders learn the Forex market. However, there is a risk involved and traders need to be wise in their decisions in choosing traders to copy.