Perhaps the most dangerous and costly platforms that have been spawned upon the investment community involve the use of so called “COPY TRADING.” This my friends is a yet another sure fire way to automatic and hassle free financial devastation.
Touted as innovative social trading platforms they entice you to choose your preferred experts, you then have to decide which of their trades to copy and what amount of funds to allocate to each one.
The overall results of copy trading are in fact
None of these platforms show you their trades before they occur in a manner that cannot be refuted. MOST IMPORTANTLY—YOU ARE NOT GOING TO PUT YOUR TRADING ON AUTO PILOT AND REAP REWARDS—MOREOVER, MOST OF THESE COPY TRADERS ARE BASED ON ALGORITHMS AND BACK TESTING SYSTEMS—WHICH ARE PROVEN TO FAIL OVER THE LONG TERM.
THE CRITICAL FACTS THAT YOU MUST KNOW ABOUT “COPY TRADING.”
COPY TRADING HAS NOT LED TO PROFITABLE RESULTS OVER TIME
Indeed you may get a trader that makes a few good trades and then those results inevitably decline and what happens is that investors who were duped into thinking that the path to riches are on auto pilot begin following multiple traders. The end result is extremely poor- 78% of investors are losing money in all such platforms.
In fact avoiding this type of product was part of the impetus behind the launching of The Futures Wizard.
Unless you follow The Futures Wizard, particularly when it comes to leveraged investments, you will most likely fall into that category. We will not be out predicted nor will the success of our publication be matched and for obvious reasons there is never any guarantee with any copy trading or copy trader platform.
Believe it or not you have to be careful of any trading platform that emphasizes minimum or minimized risk! What happens here is trading accounts have tight stops that are utterly inconsistent with the dynamics of the markets and your minimized risk on a per trade basis leads almost inevitably to a maximum depletion, and hence maximum risk, to your investment.
SOME of the more touted and advertised platforms and companies who offer copy trading services have a “dealing interest” in the volume of trading itself. Remember, for every trade there is one winner and one loser. Therefore all of these firms must “lay off” each position taken by a given trader to another trader that chooses to take the exact opposite position.
FOLLOW OR FAIL PERIOD…
Remember any company that earns their revenue from the “spread” must lay off any position you take to another trader. Only one of you can win! So regardless of any purported copy trading “babble” (which to a Wizard is precisely what it is) 50% of all of their clients lose money on every single trade… PERIOD! And over time they lose over 76% of their invested assets. That is not trading like a WIZARD that is trading like a FOOL.
Follow the Wizard The Wizard knows the Future(s)… and the Forex.