Passengers (followers) or users of social trades take over the trade decisions of top traders (signaling). The number of signaling devices can vary depending on the social trading platform. It is possible, for example, to choose three signal transmitters in the company’s own portfolio. To what extent a trader then trusts the signal transmitter, it is then up to the trader, to what extent it plus500 she he is familiar with the signal transmitter, and what money he wants to risk.
The risk is, of course, decreasing if you opt for top traders who already have proven success. Anyone who now thinks he is on the safe side, if he just takes the number one listed in the ranking in the ranking, is mistaken. To find a them IQ Option new really good trader, different selection criteria should be considered.
On every social trading platform, there is a ranking with the best traders. It is important to note that the top positions are very fast. If, for example, a trader has had great success and is ranked first in the ranking, but shortly afterwards a highly experienced trader will be equally successful, he will have to clear the first place. Not infrequently one Copy Trading it the success of some traders remains unique, which is why a trader has been successful more than once.
In addition, however, it must also be pointed out that many traders see this ranking as a competition and are absolutely in the first place. For this they use very risky strategies. This can go well, but in most cases, such an increased risk only brings losses.
Signal takers should therefore pay close attention to every top trader, especially the number and type of trades. If a trader risks too much and simply ignores obvious trends, he should not be followed. Long-term strategies are the better choice.
Another important point is that there are some social trading platforms that us etoro by regularly encourage their traders to make as many trades as possible in a short time. There is then a minimum number of trades to become the top trader at all. As mentioned above, this is a tough competition that must be viewed with caution.
As a to Social Trading out rule, the traders on the social trading platforms deposit their personal strategic descriptions, which can be viewed by everyone. For example, the traders define the rules for trading, such as entry and exit points, time periods, which are traded, and much more. Signalers should be aware of this strategic description and consider whether they can identify with this strategy. In no case should you pay attention to the expected return then 24option him on your choice of the signal source.
In order to be able to decide on a strategy, the following questions are usually helpful:
A strategy can still be sophisticated and good – it will never be risk-free. In order to minimize the overall risk, signal takers should orient themselves to the maximum losses and market volatility, ie the fluctuation range of underlying assets.
50 € bonus for your first trade!
► Now redeem BDSwiss Bonus
read what he said they
An important rule is that the greater the volatility, the more risky the investment becomes. The maximum loss (drawdown) is the highest loss within a certain time frame that can occur. Key figures for this are usually published on the social trading platforms.
In addition, some platforms also offer a variety of risk mitigation tools, such as a factor that can be individually adjusted by each signaling party, which can increase or decrease the risk.
Finally, there are, of up anyoption after course, the stop-loss orders, which are probably best known. This can be used to limit losses if a price exceeds or falls below the predefined limit. According to this, investors can not only protect themselves against very high losses, but also take a small profit with them.
When selecting the top trader, transaction history also plays