The down side of copy trading

[nelson4lov]

I have copytrader in the past and I can confirm that it's not all rainbow and sunshine like these exchanges will make it seem. I once copytrader a "pro" trader from a group I have been a part of for years. It was fine when the market was going up, but when market turned around, everything went to shit. Even worse, whenever there's high volatility to the other side of the trade, the trades are closed in a manner than the losses are so much bigger than what is shown as a stop loss. Closing all of those trades have a cascading effect that drops the prices further when exchanges try to close all orders at once.

The exchange in question is bybit. Copy-trading for me is a no-no activity.

[SamReomo]

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.

Well, it's always recommended to avoid copying other traders and learn trading yourself but if someone has to copy a trader then he/she should only copy genuine traders who aren't risk takers and patient at the same time. Because the lead traders who don't use leverage or use very low leverage are often the ones who help the copiers to earn profits in long term.

Those copiers who want to earn profit should always try to look for those traders that have low ROI but safer trades. I believe anyone copying such traders won't lose so much even if the market dumps pretty badly because such lead traders often use leveraging to minimize losses and make profits overtime.

[Rruchi man]

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.

It is better to be the trader that your trade is copied than the trader trying to copy traders. Just like deciding to join signal groups, deciding to just be a copy trader without any intention to be better means that you are only trading for a short time. Copy trading is more than just copying and pasting; it requires time, and a trader who does not have time to execute trades as quickly as a trader they are copying will not profit so much.

Another downside of copy trading is that you will also never be able to have the assurance that your profit will be continuous.

[crwth]

I think the people who just copied the most recent ones are the ones who lost. If the recent trades that he had were negative, then they probably lost a lot. I think it also depends on when you joined the copy trading for that specific person because what if the recent trades were great as well? So it would be mostly dependent on the situation.

[mirakal]

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.

Copy trading will never leave advantages even for beginners. You probably think you are making decent profits, but only to find out you are just increasing your risk to lose, because you are trading without making sure if there is probability to win or not. And by copy trading from reputable traders do not mean you'll also be in profits, they also lose their trades which means you'll also end up losing as well.

[el kaka22]

That is timing that is having some issues, this is why there aren't that many places that have automated copy trading, as in your leave your money to that person, who would use it to pump whatever they want and make money, and they just let you do it and because of that you end up seeing how there are people who got in later, and those who end up getting later they ended up being either good or bad, because of that it is something that is not the same.

If I join right as that person made the trade, then it goes down a lot but then recovers a bit, I am at a loss, but if someone joins when it started to recover they made a profit. This is why it's objectively better to just avoid copy trading and figure out how to make a profit yourself.

[Yeesha]

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.

Imitation or faux in trading can lead to cease, be your own prototype and representative that everyone will copy from you and also admire you, trading can be beneficial and it can also be unprofitable, to be a beneficiary of trading you have to learn your own way of handling your business, and say no to imitation to prevent yourself from unmasking your money to unrestrained danger.

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.

Observation is much better than coping or imitation, it is better for you to observe someone that is professional in trading than you and carried out your own analysis rather than copying someone, if you see some traders you will be thinking that they are professional and more profitable but they are the only one that know the challenges that they are facing.

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.

Since learning how to trade is not prohibited, then it is advisable and desirable to learn how to trade and have experience on it, because there is not a professional in trading, every traders lose and also gain, they have there own ways of trading, and making money, they is not exception of loss and gain in trading, both of them are included in trading.

[ethereumhunter]

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.

Copy trading will never leave advantages even for beginners. You probably think you are making decent profits, but only to find out you are just increasing your risk to lose, because you are trading without making sure if there is probability to win or not. And by copy trading from reputable traders do not mean you'll also be in profits, they also lose their trades which means you'll also end up losing as well.

They should not try to use copy trading if they don't know the risks. If they don't have enough skill in trading, they better to learns from many sources so they will not rely on other people to trade. Maybe they can profit from copy trading but that will not always happen. When you want to use copy trading, you need to analyzes the market moves so you know when you should enter the market. If you only depend on that trader, that will not good for you because you will not know what happen to the market. If you can analyze the market, at least you will have an image where the market will go. But it is better if you trade by yourself so you will take responsibility with your money and know when you must quit trading before your money is gone. All things have its risks so you must know how to manage the risks not to become big and you know what you will do when the situation change.

[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.

Observation is much better than coping or imitation, it is better for you to observe someone that is professional in trading than you and carried out your own analysis rather than copying someone, if you see some traders you will be thinking that they are professional and more profitable but they are the only one that know the challenges that they are facing.

Yeah, I don't advice newbies to start participating in copy trade because they can experience a huge lose without knowing how to go about it when the market take a bad turn against them. It's better to learn how to trade, even if you must copy other's trade, better you know how to trade on your own, so that you can be able to detect errors and make your own adjustment when need arises.

[stadus]

Know that every trader experience certain losses with trading, as profiting from trading most especially with an unpredictable market, losses are inevitable. So if you are only here to copy trades from other experienced traders, believe me that won't guarantee all time profitability. Even experts still lose at some point, how much more for those who decide to trade without knowledge and experience.

This is why I don't suggest copy trading after all. It will only be profitable at first, but prepare for the worst losses the rest of your trades. The reason maybe why a lot end up quitting in trading and just settle on hodling.

[Dewi Aries]

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.

Observation is much better than coping or imitation, it is better for you to observe someone that is professional in trading than you and carried out your own analysis rather than copying someone, if you see some traders you will be thinking that they are professional and more profitable but they are the only one that know the challenges that they are facing.

Yeah, I don't advice newbies to start participating in copy trade because they can experience a huge lose without knowing how to go about it when the market take a bad turn against them. It's better to learn how to trade, even if you must copy other's trade, better you know how to trade on your own, so that you can be able to detect errors and make your own adjustment when need arises.

Usually I only make copy trading as an option when I don't have free time to analyze a market, such as being busy while at that time I have entered my daily or weekly trading session regardless of the results.
But of course I also agree with your opinion that copy trading is very likely to make someone experience big losses, and the problem is that they will not know about what makes them lose because they use other people's predictions that are applied in the copy trading system.

So that can be a pretty serious problem if you don't immediately remove copy trading from your list of choices, especially for a beginner where it is a learning stage for them in the sense that losses are something that must be learned and they will only be able to learn it or evaluate the mistakes when they trade in their own way so that in the future it will no longer happen, and also so that you do not experience delays in development.

[shinratensei_]

I think the people who just copied the most recent ones are the ones who lost. If the recent trades that he had were negative, then they probably lost a lot. I think it also depends on when you joined the copy trading for that specific person because what if the recent trades were great as well? So it would be mostly dependent on the situation.

that's actually true, some trader make really good gain at the start of bullrun it overshadowed their overall performance post bullrun or mid bullrun, this is why I also never trust copy trading to make profit, it's just really uncertain, although we can see historical trading data from the trader, but I don't think that's not good enough indicator aside just a proof that this trader has done some good trades, because the market is shaky, maybe their next few trades are the trades that gonna make them give the money back to the market who knows, if we apparently follow right at that time we gonna lose so much while the trader just make break even.

[Peanutswar]

Others do copy trading because they do not have time to trade to themselves instead they are letting other people who trade to them with a percentage gain by the traders, but that doesn't mean they didn't monitor the trades at all because you are just copying their trade there's some instances on your own that you will close your trade if that's enough on your side. For example, the main trader makes another position and makes a mistake and of course they would like to make a new set of trades because you are copying possible with their emotions in trading affects your results too. Copy trading is just being convenient to those who don't have time to trade but its different if you are doing the risk for the safety of your asset.

[pawanjain]

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.

It gets quite tricky in copy trading. If the person is already in profits and if we copy him then we "might" lose money.
If the person has just started then it becomes uncertain whether he will make profits or not.
If the person is losing money then there's no point to invest at all.
So in copy trading the best point is to copy when the person has just started trading and is making profits.

[Dr.Bitcoin_Strange]

Usually I only make copy trading as an option when I don't have free time to analyze a market, such as being busy while at that time I have entered my daily or weekly trading session regardless of the results.
But of course I also agree with your opinion that copy trading is very likely to make someone experience big losses, and the problem is that they will not know about what makes them lose because they use other people's predictions that are applied in the copy trading system.

Knowing that the market is dynamic and that every position started can still go against me make me to conceive fear in my mind and am scared that if I use a copied trade, I could experience an unexpected lose. I even trust my own analysis more than any of those so called professional that gives out their trade to be copied. I am not claiming to be more professional than them or to earn more profit than them but I just feel that it's right to lose one my own analysis, rather than any one's else.

[Odohu]

I have not heard much positive things about copy trading, the most I've heard about it are people expressing regrets and this is the reason I have never tried it before. According to people who have tried it, it usually start very well but along the line it begins to produce bad results due to software malfunctioning or a change in market dynamics. I will not encourage anyone to try copy trading because trading is more of a personal thing that one should take responsibility of and not rely on another.

[Dewi Aries]

Usually I only make copy trading as an option when I don't have free time to analyze a market, such as being busy while at that time I have entered my daily or weekly trading session regardless of the results.
But of course I also agree with your opinion that copy trading is very likely to make someone experience big losses, and the problem is that they will not know about what makes them lose because they use other people's predictions that are applied in the copy trading system.

Knowing that the market is dynamic and that every position started can still go against me make me to conceive fear in my mind and am scared that if I use a copied trade, I could experience an unexpected lose. I even trust my own analysis more than any of those so called professional that gives out their trade to be copied. I am not claiming to be more professional than them or to earn more profit than them but I just feel that it's right to lose one my own analysis, rather than any one's else.

Well that's it, basically it cannot be denied that even though we analyze in our own way, losses are still possible and if using other people's predictions has the same possibility in terms of risk, then of course it is better for us to analyze in the way we have, one thing I will say is that even if for example you experience a loss using your own analysis but you will be able to make it a lesson and evaluate what mistakes you have made, while when you use other people's predictions then of course you will not know why you experienced a loss. I think we should pay attention to that direction, because even though you lose, you will most likely know the reason why you lost if you do it your own way where this action will prevent you from the same incident in the future.

[RockBell]

Others do copy trading because they do not have time to trade to themselves instead they are letting other people who trade to them with a percentage gain by the traders, but that doesn't mean they didn't monitor the trades at all because you are just copying their trade there's some instances on your own that you will close your trade if that's enough on your side. For example, the main trader makes another position and makes a mistake and of course they would like to make a new set of trades because you are copying possible with their emotions in trading affects your results too. Copy trading is just being convenient to those who don't have time to trade but its different if you are doing the risk for the safety of your asset.

If you have already prepared yourself before you start, you have to have the mindset that you want to grow money and there should be something that is driving you so that other people trade should not be your problem if you don't have time to trade I feel you should just allow it then when you have time, even if it was on percentage gain does not make any difference and I don't think I will be comfortable because my mind will always be their, and if it does not work i might feel is the person fault.  there is a lot when it comes to depending on another person's trade and this is new there was nothing like copy trading, a good point was made if you are trading,  your trading should be intentional with everything there is nothing left out, so that you wont make to may mistakes.

no matter what it might be take your time to do a market study which is the analysis yourself self and that why you can even be able to learn more By doing copy trading you might just become lazy with your trading and doing analysis you might just want somebody else to do it. when just need to concentrate more whenever we want to do trade because I feel like some people are just trying to force deep down they don't have an interest in trading but they will still feel they can do it and it is not by force if you can not trade just buy and hold that will be much better instead of the whole stress.

[GiftedMAN]

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.

Just like the name sound, copy trading is very risky and one need to be knowledgeable to understand what it takes to go in fully. Copying the trade of people that know how to trade can be always be profitable for us but one too need to understand the risk that is involved in it. If the trader lose, the copy trader is always going to lose. The risk can be huge if the trader make any mistakes or things goes against them. The cryptocurrency market is huge and we can make loses if we don't have concrete understanding about the market. Investing what we know we can afford is better because greed can increase our loses when we invest more than we can afford to lose.

[JeffBrad12]

copy trading is not magic button that will magically give you profit, you should analyze the trader characteristics based on their trade as well, some might work with better with big capital some might work better with lower capital.
so you also need to do your own due diligence which apparently not that many people think of, some newbie just copy trade and call it a day without reading the characteristic of the one they copied.

but to be fair, not even the best trader out there can trade in this shaky market, so many people are confused with current market direction, sudden BTC dump can liquidate your long position in ALT and sudden BTC pump might not trigger your alt long position to be profitable, overall really shitty days this past few weeks, can't deny i've lost some money navigating the market . but overall not that much lost.