The down side of copy trading

[Oshosondy]

I just decided to visit copy trading today again. I went through some traders that are copied. I saw the people that are copying them.

The first person that I checked that has opened a position for 90 days is making money. Some people that copied him is making money also but some people are losing money while copy him. There are people that copied him but make no money but not losing yet at the time I snapped this.


This is just like 5% of  people that copied him. I snapped the people from the top which gained most. I scrolled down to snap people from the down part which are the people that are losing most.


 


What lesson can you pick from this?

1. If the person just started trading, you will not know if you should copy him or not
2. If the person is making profit already and you copy him, you might be losing

Know that the person you copied might be losing.

[adaseb]

You will rarely find a trader who is profitable long term, if they are profitable long term then their profits arent as high as those traders which are high up on the charts.

What they basically do is have a good week or good month and it hooks people to copy them so they can get some commission back. But eventually what happens is, they will take one trade which will go against them too far and their entire account will get liquidated.

Most trade with small amounts anyways, so if they blow up their account they dont care but the people who copy them will face huge losses. I would avoid copy trading at all costs.

[royalfestus]

what platform are you using?

[tabas]

What lesson can you pick from this?

1. If the person just started trading, you will not know if you should copy him or not
2. If the person is making profit already and you copy him, you might be losing

Know that the person you copied might be losing.

So whether you copy trade or trade on your own, there won't be any way to skip losing but to become a learner. Honestly, whenever I see content about trading and these people are suggesting copying trade as if it's very easy to trade, they're misleading a lot of people.

What they basically do is have a good week or good month and it hooks people to copy them so they can get some commission back. But eventually what happens is, they will take one trade which will go against them too far and their entire account will get liquidated.

This is so true, why I see a lot of them suggesting this is because they all want to have that commission from the people that will copy them. It sounds very easy to make money from this if you have just heard of it but it's not and I hope the exchanges and people that knows about this won't advertise it as something easy.

[X-ray]

2. If the person is making profit already and you copy him, you might be losing

I've noticed that there are some expert trader that consistently losing after making some huge profit the previous year in copy trading, I think it's because every year the cycle is kinda different so it's hard to predict, some people might excel at some bullish period but just outright went so weak the next bullish period, or maybe is it intentional to make exit liquidity? who knows but in a nutshell, these copy trading aren't really effective means of making trade without knowledge either.

personally I just won't risk it following investment of other people, since I'm already so used to investing by my own and my performance is not that bad but not that impressive either. these copy trading are more suited for people that absolutely have no idea.

[BlackBoss_]

The first person that I checked that has opened a position for 90 days is making money. Some people that copied him is making money also but some people are losing money while copy him. There are people that copied him but make no money but not losing yet at the time I snapped this.

Let a trading position opens for 90 days is very bad in my opinion.

In this volatile market, one of most important principle is don't let your trading position opens like forever and only wait to get profit from it. You must identify when you have to close your position, before you open it. If you are trading with leverage, this principle is more important as it can help you to exit the market and proactively avoid liquidations.

[Oshosondy]

what platform are you using?

There are many exchanges that is having copy trading by now. I have seen it on Binance, OKX and many other exchanges. I presently use Bybit more. The picture is taken from Bybit.

Let a trading position opens for 90 days is very bad in my opinion.

It is swing trading. Swing trading is less risky than other form of trading as traders prefer to use less amount of money for it and not leveraging it. Although some people can say it is becoming holding. But be it swing trading or holding, what that matters is how you analyze the market. But swing trading is not good for shit coins.

[TheUltraElite]

I keep getting reminded of the school teachers who used to scold us during tests "Dont copy from your friend, write on your own"

I think that advice is a life advice and the same can be applied to this method of trading, if you are not using your own head, you are exposing your money to uncontrolled risks and thus losses.

I know that some newbies will find this method attractive, because they think it is a cheat code to earn money - unfortunately it is not so and thus I dont recommend it.

[Dr.Bitcoin_Strange]

Personally, I don't like to ingage myself into copy trading and I think even before a trader must start to copy trade, they need to learn how to trade on their own so that they don't have to only rely only on copies. In copy trading, you don't have a full assurance of making profit because even those professional traders can also be wrong in some of their analysis.

[slaman29]

I didn't know there was any upside to copy trading @Oshoshondy But JK in all seriousness, I don't ever see copytrading as a viable strategy. Its like following tipsters in anything. Sportsbetting, trading signals, they all don't work unless the trader/gambler shows you every single record, every single detail of trades/bets.

Which almost 99% of tipsters or signal providers don't. Those very few who do, will show its not always in profit.

I would stop copytrading asap bruh.

[hugeblack]

The one whose trades you are copying is either a professional trader or a fraudster. If he is a professional, it is like trying to imitate a professional driver who performs dangerous stunts. If he is a fraudster, the possibility of losing your money is greater. In short, since learning to trade is free, consider it a good opportunity to learn a skill that may earn you more money.

[GreatArkansas]

I keep getting reminded of the school teachers who used to scold us during tests "Dont copy from your friend, write on your own"

I think that advice is a life advice and the same can be applied to this method of trading, if you are not using your own head, you are exposing your money to uncontrolled risks and thus losses.

I know that some newbies will find this method attractive, because they think it is a cheat code to earn money - unfortunately it is not so and thus I dont recommend it.

Yes, copy trading is not for newbies, although they can use it I don't recommend it, why? Because the essence of them to learn something, especially basics and they will strive hard to learn more will be useless.

They can use copy trade but make sure they also learn consistently, they must not settle for less than relying on others, they can be good trader also.

[Coin_trader]

It’s very hard to trust a random trader on crypto because there’s always a tendency that they will commit a risky trade due to the volatile of crypto. One bad trade can result to a huge loss so I never do copy trade even with a good portfolio of the trader.

It’s better to just trade on your own since you don’t know what will be the next move of the trader you are copying.

[milewilda]

What lesson can you pick from this?

1. If the person just started trading, you will not know if you should copy him or not
2. If the person is making profit already and you copy him, you might be losing

Know that the person you copied might be losing.

Each exchange platform does have their own copy trading on which traders would really be that allowing for them to be copied in regarding about their positions. It would really be that impossible that you wont really be able to make yourself be wary about those numbers on which one is really that profitable on a particular period or on how long does the trader been doing trading and having those portfolio positiveness towards their trades or simply about their profits on a particular period. So checking out their stats would be essential.If ever they are really that neither negative then its part of the risks because copying someone
wont really be giving out that assurance about making profits. This is why it would really be that sensible that you should really be making out some learning too on your own.

Losing up money on copy trading would really be giving out that kind of regret when it comes to losing money which is really that totally different when we do make our own trades that came from our
own analyais. Copying someone? It would really be just that depending on you because it would really be that people are just too lazy or simply they cant have the time on learning up trading.
If you wont really be having that serious approach towards it then you wouldnt really be thinking on how you would be able to learn yourself.

[SquirrelJulietGarden]

Yes, copy trading is not for newbies, although they can use it I don't recommend it, why? Because the essence of them to learn something, especially basics and they will strive hard to learn more will be useless.

They can use copy trade but make sure they also learn consistently, they must not settle for less than relying on others, they can be good trader also.

Like trading bots which are not for newbies too. People must start with learning about the market, including past market cycles, psychology cycle of market and kick off their journey with investment.

Investment is first thing they need to do, to get profit and to understand about this market better by their own experience. Then they can start trading but only with Spot and the warning is never use Leverages, Futures trading. These trading types are dangerous not only for newbies but for all including senior traders.

Trading bots, copy trading are for experienced traders who have enough time and experience in this market with another warning is all strategies can fail with time or at some wild changing time of the market.

Psychology of a market cycle
Bitcoin market cycle

[GreatArkansas]

Yes, copy trading is not for newbies, although they can use it I don't recommend it, why? Because the essence of them to learn something, especially basics and they will strive hard to learn more will be useless.

They can use copy trade but make sure they also learn consistently, they must not settle for less than relying on others, they can be good trader also.

Like trading bots which are not for newbies too. People must start with learning about the market, including past market cycles, psychology cycle of market and kick off their journey with investment.

Investment is first thing they need to do, to get profit and to understand about this market better by their own experience. Then they can start trading but only with Spot and the warning is never use Leverages, Futures trading. These trading types are dangerous not only for newbies but for all including senior traders.
(...)

Speaking of the psychological cycle of the market, I agree with that, but if you are a trader, even bull market or bear market, you can still make money if you are capable of it, like you can short in a bear market to make profits or just some quick long, depends on your analysis and still make profits.

[Hamza2424]

Let a trading position opens for 90 days is very bad in my opinion.

In this volatile market, one of most important principle is don't let your trading position opens like forever and only wait to get profit from it. You must identify when you have to close your position, before you open it. If you are trading with leverage, this principle is more important as it can help you to exit the market and proactively avoid liquidations.

Hmm, Yup for sure it's bad, and it's like you are sitting on an active bomb because it's not a traditional market where traders enjoy the certainty, in the crypto market even a long-time frame trader also uses the the max weekly frame.

Copy trading is not for newbies, even though by definition it looks like it is designed for those who have little knowledge about trading as they can follow the expert traders to execute trades efficiently but its completely opposite, those expert traders control your assets and take higher risks while trading and as most of the trades don't have enough capital as the expert traders do they lose most of their valuable assets.

Watch, analyze learn how those traders are trading and compare your own skills with and decisions with them then check out the results and compare your analysis-based results with those traders, this is what I recommend to newbies and those who like copy trading as it the only positive factor because you can improve your skills and trade decision making efficiency but never follow a trader and let them trade with your assets.

[Lanatsa]

I keep getting reminded of the school teachers who used to scold us during tests "Dont copy from your friend, write on your own"

I think that advice is a life advice and the same can be applied to this method of trading, if you are not using your own head, you are exposing your money to uncontrolled risks and thus losses.

I know that some newbies will find this method attractive, because they think it is a cheat code to earn money - unfortunately it is not so and thus I dont recommend it.

Yes, copy trading is not for newbies, although they can use it I don't recommend it, why? Because the essence of them to learn something, especially basics and they will strive hard to learn more will be useless.

They can use copy trade but make sure they also learn consistently, they must not settle for less than relying on others, they can be good trader also.

It should really be that the basic approach on things on which on the time that you would really be considering on dealing with copy trades when you are a complete newbie then there's no way that you would really be able to make yourself that able to become a better trader, and just like on what you have said that there's no learning that you could get from it, not unless if you would really be that trying out to learn with those
people then you are basically enhancing up your knowledge on which this would really be something beneficial for long term. It would really be just that basing up on personal choice on how they would be dealing up with trading and on how to learn from it. If you are someone whose really that trying out to become a better trader then it would be a sensible approach that you would be starting up with the basics and doing it via manual trading on which this is something more recommended and preferred on this aspect. Learning curve would really be much more significant rather than on doing copy trades.

As for the downside then profitability could be shown on exchange platforms as part of their features on which you could check out on how profitable they are and they are really that making up gains.
Yes you could make money but i just dont feel like that needing up to have those deductions of your earnings. 

[khiholangkang]

I've done copy trading but it's the same as losing especially quite a lot, it's also not good if it's done continuously because this will make us dependent on other people's trading strategies, and we will not be able to be independent in trading, it's not a good thing for the long term, especially if you have aspirations of becoming a successful trader in crypto, all storms must be a lesson and all decisions must be based on analysis and personal decisions.

Basically it is better to lose based on the results of market analysis and personal decisions, such as screenshots of my trading activity some time ago.

[Distinctin]

You will rarely find a trader who is profitable long term, if they are profitable long term then their profits arent as high as those traders which are high up on the charts.

What they basically do is have a good week or good month and it hooks people to copy them so they can get some commission back. But eventually what happens is, they will take one trade which will go against them too far and their entire account will get liquidated.

Most trade with small amounts anyways, so if they blow up their account they dont care but the people who copy them will face huge losses. I would avoid copy trading at all costs.

That's the reality with copy trading. You can't guarantee that those traders you are copying are always profitable on their own trades since we all know how trading is quite hard to be consistently in profits. They surely lose at some point but if you see them winning constantly, it's most likely that they are just trading at their own risk, a small amount that it would be okay for them if they end up losing.

Copy trading will only be profitable if you do it while you are starting to trade. But if it means copy trading throughout your trades, that won't be profitable at all. Majority do end up losing while the ones they copied are silently rejoicing because of their commissions that they have gained while leaving those traders at loss.