Why is Copy Trading such a great tool for novice traders?

Ever ended up staring at a candlestick chart of chaos and wondering where the Bollinger bands are, or desperately hoping that the Ichimoku cloud you painstakingly found would tell you something actually helpful for a trade? I, for one, have sieved through tons of forex trading books only to find that I know absolutely nuts about trading in the real world. So how can we reap the benefits of forex trading as novices?

Copy trading may very well be the key to new traders who are looking for some tips from a professional out there. With copy trading, you are not only able to use another trader’s expert knowledge to reap some profits, but you can also learn the different techniques used by the signal providers.

When you follow a signal provider, you are able to see the trades that are being made each time, as well as his or her trade settings. By observing the charts when live signals are being sent out, you can gradually have a pretty good grasp of the market conditions when the trades are being executed. Tally the signals with your own predictions and evaluate them. In due time, you will be able to familiarize with readings on the chart that signal a plausible time to enter a trade!

Copy trading platforms also allow you to look back at the trade history. What I like to do is to study the movements in retrospect while analysing the charts. In this manner, I can take however long I need to observe the prices movements and assess the decision-making process of my selected signal provider. That seems like a load of homework to do but it does beat figuring things out on your own! Why don’t you give this a shot too?