Copy trading has totally changed how folks invest their money in the markets. Now, even if you’re brand new or super busy, you can still make money by copying what the pros do. Sounds easy, right? Well, sort of.
But to actually do well, you gotta pick the right traders, manage your risk, & have a smart plan.
In this guide, you’ll find:
- What copy trading really means & how it works.
- The main numbers you should check before copying anyone.
- Proven tips to help you make more money.
- Mistakes most people make — so you don’t do them too!
What Is Copy Trading?
Copy trading lets you automatically follow the trades of more experienced traders. You don’t need to stare at charts all day or worry about the news. You just pick someone, put your money in, & let the platform copy every move into your own account.
Simple as this: They buy, you buy. They sell, you sell. All this happens instantly.
Think of it like this—let’s say you can’t drive yet, so you get a driver to take you everywhere. That’s copy trading! You’re letting a pro handle your investments. As you watch, you’ll start to get how things work. Someday, you might become a pro too.
Why People Like Copy Trading?
- You don’t need to know anything about trading. Perfect for newbies.
- Saves tons of time—you don’t need to do long, boring research.
- You can copy different traders to spread out your risk (that’s what the smart folks do).
- You can make steady money if you copy winners with a good record.
Let’s be real, if you’ve got a job, a business, or busy family life, you don’t have hours to spend online looking at numbers. With copy trading, you can just “set it and forget it”—but still have a shot at making money like a pro.
Some Risks of Copy Trading!
Hold up though—it’s not magic. Not all traders make money.
- Picking the wrong person can cost you.
- If a trader takes big risks, you might lose everything they do.
- You don’t really control what happens—your results hang on what the trader decides.
Think about asking a stranger for investing help—would you just give your money away without checking if they were any good? No way. It’s the same here. You must check them out first, or one bad trader could mess up your account big time.
Key Things To Check Before Copying A Trader
Before you jump in, look at these three things closely. It’s the only way to lower your risks & boost your chances of winning.
1. Risk Score – Shows how wild or careful a trader is (rated from 1 to 10).
- Low (1–3): Careful, smaller wins, but few losses too.
- Medium (4–6): Balanced. Kinda safe, steady money.
- High (7–10): Big risks—can mean big bucks or big losses!
Think of this as a car’s speedometer. If someone’s Risk Score is 8–10, they’re flying down the highway. One wrong move and CRASH! Someone with a 3–5 score is more like your grandma—safe, steady, just cruising.
2. Drawdown – This number tells you how much the trader’s account has dropped before it went back up.
- Less than 20%: Pretty safe (awesome)
- 20–30%: Not too bad
- Over 40%: Danger zone—better stay away
It’s kind of like a roller coaster. Small dips (like 10–20%) are fun and don’t scare you. But if it drops 50%? Yikes. That’s too crazy. You want folks who keep things smooth.
3. Growth Per Month – Shows how much money a trader usually makes each month.
- 5–10%: Safe, steady, no drama
- 10–20%: Some risk, but good rewards
- Over 30%: Whoa, slow down. That’s probably too risky
If someone says they can double your money every month, would you believe them? Nope. That’s just not real. Look for traders who make 5–15% each month. That’s people putting cash in your pocket, slow & sure.
Copy Trading Strategy
Here are proven strategies you can use in copy trading to reduce risks and increase your chances of ending the day with profits.
1. Don’t put all your eggs in one basket.
Copy 3–5 different traders. Mix it up—different styles, different risks.Move your money around sometimes, depending on who’s doing well.Like eating: you wouldn’t eat just candy every day, right? Variety keeps you safe.
2. Keep An Eye On Risk.
Set a limit on how much you’re willing to lose.Take out profits every now and then.Don’t go after traders who keep losing big chunks (above 40% drawdown?—just say no).
Picture a garden. If you want it to grow, you trim the plants, take out weeds, check for bugs. Same with your investments.
3. Choose Traders Who ALWAYS Perform.
Look for folks with at least a year of winning trades.Regular, steady profits are always better than one lucky month.Low losses, slow and steady wins the race.
Would you let someone brand new manage your life savings? Didn’t think so.
4. Check Up Regularly.
Go over how your traders are doing each week or month.If one starts acting risky, stop copying them.Play the long game—don’t worry about little ups & downs, focus on steady growth.
Copy trading isn’t totally “set it & forget it” forever. It’s more like driving with cruise control. You still need to make sure you’re on the right road.
Best Copy Trading Platforms
If you’re looking for platforms where top master traders share their trades for copy trading, these two online brokers are among the best. Check them out and create an account to explore what they offer:
One Last Thing…
Copy trading can help you grow your money—yes, even if you’ve never traded before. Focus on Risk Score, Drawdown, & Monthly Growth. Pick the right people, skip the risky ones, & your profits will start to add up.
Want to try? The trick is to find the right platform and the right traders. Then look after your investments like a smart, careful investor. Who knows—you might even be the one others copy someday.
