Is copy trading safe for beginners?
Copy trading sounds easy: pick a good trader and copy the trades. What are the risks?
For education only. This is not financial advice. Trading carries a high risk of loss.
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1 Answer
Best answer
It is not safe by default. Copy trading removes the work of choosing trades, but not the risk. The trader you copy can have a bad month, use martingale or hold losing trades without a stop.
Look at a long history (at least 6 to 12 months), the maximum drawdown, the average risk per trade and whether the results are verified by the platform. Do not follow only the highest recent returns, which often come with the highest risk.
Start small, spread across more than one trader and set your own maximum loss.
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