What is mirror trading?
Forex Trading Copy and Paste methods involve practice when some trader creates a trade at the same time in your trading platform trade will be executed. Using mirror trading platform basically you are copying the trades of more experienced traders.
See HF Copy platform (visit HF Copy website) video example:
Mirror trading platforms – signal providers list
1) Zulutrade is a Social Online Platform of Auto trading for the Forex market. Visit the Zulutrade website.
2) MQL5 is Metatrader website which offers signals to all people who use MEtatrader 4 and 5 platform. Visit MLQ5 website signal section.
3) Collective2 is a mirror trading social network where traders can pick strategies. Visit Collective2 signal providing platform
4) Hotforex Copy is a social network platform where traders can copy signals. Visit HF Copy
In order to improve the profit factor, various techniques are used in the forex market. But it is difficult to find the best tricks to increase profits in forex trading as millions of people are trying their luck in this field. Many interested traders are offered trading accounts with high leverage by many brokers in the forex market. To allow the traders to make attractive profits many brokers also provide them useful information about this market. Actually, to allow some of the traders to start making money at the initial stage of their career some platforms usually sell trading signals to their customers.
In recent years, the method of using forex trading signals has become very popular among the investors as most of them do not want to waste time reading and analyzing charts. We are trying to break the misconceptions about the notorious techniques used by many investors in this write-up. It is a very important article for you if you are amongst the investors using the strategy of free-riders to make profits in the forex market. We will break these misconceptions in a gradual manner so that you may understand that in this world nothing is available for free. You should read this article patiently as you may understand the things slowly but surely and accept that the information provided in it is entirely different from the ideas you were following until now.
The forex market is a zero-sum game, “mathematical representation of a situation in which each participant’s gain or loss of utility is exactly balanced by the losses or gains of the utility of the other participants”.
While using this clever method, the thing that comes to your mind at first is to make an enormous amount of money. But smart traders can understand the facts within no time that the brokers with ill reputation have set tricks. If this method performs as well as it was publicized then they should also use it to improve their profits. There can be many excuses to answer such issues but none of them can be close to reality. This write-up would not have existed if to be rich has been as easy as it seems to be.
Reasons to lose trades with trading signals
The main reason why traders lose money using trading signals is that they do not know how to pick the right trading strategy, calculate risks, measure performance. Trading signals platforms very often do not offer important information about the portfolio and trading strategy (some platforms do not show absolute drawdown. Beginner traders do not understand how drawdown is important in comparison with how many pips some trading strategy made in the past.
Here is an example of a bad mirror trading platform performance measurement:
The trader opened BUY trade EURUSD at 1.3. After 14 days he closed the trade at 1.31.
After that trader created another BUY trade at 1.31 and closes at 1.305.
Mirror trading platform will show you drawdown 50 pips and profit 100 pips and set these 2 trades as profitable.
But, this is not true! You do not know one important fact.
During the 14 days in the first trade, the signal provider created 300 pips drawdown. Price went to 1.27 and then again go up to 1.31. This trading strategy was dangerous. The strategy provider does not like to cut losses. But you do not know that from stats because system showed only close trades, do not monitor equity.
Equity drawdown is important and not closed losing trades drawdown.
Though using Forex signals to make profits in forex trading seems good as the service providers will provide you signals after analyzing the forex market. According to service providers, you need not do anything, and money will start coming into your pocket just by receiving text alerts and emails. But that is not the right way to trade in the forex market. It is not as easy to make money in the forex market as displayed by the providers of forex signals. According to experts, the service of the forex signal is not as good as it has been promoted as they may not allow you to achieve your goal.
Most of the forex traders using trading signals lose their trades because they do not have self-confidence. These signals may not be suitable for your trading style and you may not be able to take responsibility for your failure as you have followed the signals provided by the service provider.
Today you can find some of the successful traders providing Forex trading copy and paste services of mt4 though they are followed by very few successful traders. As compared to the providers of signal services these traders are several thousand times better. When you follow mt4 services you are sure that your funds will be handled very carefully as there is a master account to which your trading account will be attached. Now to make huge profits you need not make goals for the long term. The forex trades will be copy-pasted to your trading account and the hard work will be done by the professional traders. However, if you consider forex trading as an optional source of income only then you should follow this technique. You may not be able to control the factors affecting your profits unless you are confident enough to trade on your own. It is like you are spending your own money on someone else. You can lose your money if he fails to perform as per your expectations. So, you should try to learn things properly in this regard.
Ensure your financial stability
A person cannot be made financially self-reliant on the basis of some other person in any way. It is impossible for someone to become a profitable and successful trader by depending on other people. The only way to be a successful trader is to work hard to copy the skills of others. Initially, you may find things difficult in the market but you can be successful one day if you do not quit. As you will move on things will start falling in the right places. At this time you should remember that you will have to deal with your financial problems instead of anyone else. Though things may look difficult at this time instead of feeling sorry, you should prepare yourself for all the circumstances.
Have faith in you
As time passes away people start believing that no one is their friend in this world. You can find a number of websites providing wonderful signals at very lucrative rates but you should not rely on them as their purpose is not focused on earning money. We do not compel you to believe in us. But you can believe in us by observing the results after using this formula in your active trading account. We are sure that most of the readers of this write-up will be surprised to read the information provided in it. You will know that signals are used as a lure to attract more traders if you will think smartly on this point. You can use forex trading copy and paste service if required, as it allows you to copy the trades directly from the account of professional traders. You can lose your money if the trade is lost by the professional trader easily.
In the next articles, we will learn how to pick the best portfolio (signal provider as well), what to look for.