These days online trading is one of the most popular ways to invest money. After all, who doesn’t like to gain profit in less time? Everyone does, right! There are so many methods and ways to trade your money online.
Investors and traders who are experienced know all the techniques quite well, but if you’re a beginner, there are high chances of making mistakes. And these mistakes can cost you a lot!
Yes, with the experience, you will get to know about the right strategies and methods, but this will take some time. There is also one way to gain profits without losing much and that too quickly!
We’re talking about mirror trading!
Besides social and copy trading, mirror trading is also a popular strategy in forex and stock markets. So why is mirror trading extremely famous in these markets? Mirror trading allows traders to “Mirror” the actions and positions of experienced and successful investors. This also provides high-quality information and transparency tools as compared to other methods.
This is great for people who are new to online trading. They can follow the trades and implement the trades of successful forex investors in almost real-time in their accounts.
So if you’re a beginner to the forex and stock markets and want to invest your money, keep reading on. Today in this article, we’ll be explaining mirror trading tips and the benefits of mirror trading in the online trading markets.
What is Mirror Trading?
Mirror trading, also known as mirror effect trading, is a method in which traders ‘copy’ or ‘mimic’ the actions of other more established and experienced investors.
This way, users can set their respective accounts specifically to “mirror” the actions or moves taken by a pre-selected trading strategy. And all this happens automatically and in a real-time trading environment.
This trading method is particularly beneficial for those new to the forex or stock market. They can easily hard-copy a successful trader’s moves and strategies, on a specific market, in their desired mirror trading platform.
People get confused between copy trading and mirror trading. Are they both the same? Yes, you can say that mirror trading is a form of copy trading. However, copy trading is all about copying human-induced trades, whereas, in mirror trading, you can copy the automated trading strategies or algorithmic strategies.
Still confused? Scroll down to know the major advantages of mirror trading.
Top 4 Benefits of Mirror Trading
So is there any advantage in mirroring the moves of other investors? Below are some of the key benefits of mirror trading in forex and stock markets:
One of the major benefits of mirror trading is capital control. Traditional trading, such as forex trading, bitcoin trading, CFD trading, and commodity trading, requires selling your capital to third parties. However, this isn’t the case with mirror trading; here, you do not need to sell your wealth or transfer your money to others.
Mirror trading automatically determines when a trade gets opened, closed, or amended. This reduces the emotional impact and stress in many ways. There is no need for you to make rash decisions that you may regret later. You don’t have to worry about the day-to-day fluctuations in the forex markets.
The chosen strategy will follow the trends and actions of other decisions, and you only have to check the performance of your mirror trading account every week. That’s it!
Various Tool & Markets
At first, mirror trading was only possible in the forex market, but now it’s not limited. Today, you can find many trading platforms and tools to get mirror trading services for CFDs, futures, stocks, etc.
Some of the best mirror trading brokers are AVATrad, Naga Markets, MultiBank, MQL5 (US Friendly), and CMC Markets.
Mirror trading is reliable, and it also reduces costs. Mirror trading platforms and forex brokers always examine, test, and validate the trading strategies. Later only, they can upload all these techniques to their platform. This will help reduce the risks of losing trades and increase the reliability of algorithms. These platforms also have a 12-month track record of profitability.
Now you know why mirror trading is so popular in online trading. It is one of the best ways to gain experience and exposure to the forex and stock markets without losing money.
However, just with the mirror trading technique, you won’t gain millions quickly. Apart from the mirror trading tips, you also have to know all the other strategies and methods of these markets. So, be aware of all the risks while gaining experience in these markets.