Copy Trading Platform: Complete Guide for Beginners

Copy trading is not a recent phenomenon. It emerged in the early 2000s alongside online trading platforms and social trading networks. Professional traders were initially sharing their trades manually and the follower traders were trying to copy them. Technological progress brought about automated copy trading in real-time allowing trades to be mirrored in multiple accounts simultaneously. Presently, copy trading is in vogue among both novices and seasoned traders worldwide, more so in India where brokers like Zerodha, Angel One, and Alice Blue have partnered with copy-trading platforms like Combiz Services Pvt Ltd to offer their services.

What is Copy Trading?

Copy trading is a strategy where the trades of the successful or professional traders are replicated automatically in the traders' own accounts. Rather than going through the painstaking process of market analysis and decision making, a follower account simply transacts the same way as the master trader. This way, the beginners get to participate in the market and learn trading strategies during the process of still being at the real trading activity.

The main advantages are:

Automation: Time-efficient since trades are automatically copied.
Learning Opportunity: Beginners can subtly pick up the tricks of the trade of senior traders.
Diversification: In case of risk, it means copying several traders to share the burden.

Why Use a Copy Trading Platform?

By using a copy trading platform, the connection between master traders and followers is maintained and the trade execution process is automated. The majority of Indian brokers do not support native copy trading features, which is a common case. Platforms such as Combiz Services Pvt Ltd, however, offer:

Master-Child Auto Copy Trading
MT5 to MT4 Trade Copier
Cross-Platform Trade Copier
Real-Time Execution
Risk Management Settings

A trustworthy copy trading platform guarantees the execution of trades without any delays, consequently slippage and errors are minimized.

How Copy Trading Works

Select a Master Trader: Pick a trader whose trades you would like to copy.Examine their past performance, risk profile and trading style.
Set Up Your Account: Link your account with a copy trading platform, for instance Combiz Services Pvt Ltd, and set the risk parameters.
Allocate Capital: Determine the amount of money you want to invest in copy trading. If you are a novice, it is better to start with small amounts.
Automatic Trade Execution: The system automatically copies the trades of the master trader to your account.
Monitor & Adjust: Regularly evaluate the performance, modify the risk, or change the master traders if required.

Advantages of Copy Trading Platform

Saving Time: No more constant chart monitoring needed.
Expert Access: Beginner traders can use the skills of the best traders.
Risk Reduction: Copy several traders so as to minimize the risk exposure.
Automation: It allows for instant copying over different accounts and platforms.

Risks to Consider

Copy trading is indeed a powerful tool, but meanwhile, it is also risky.

No Guaranteed Profits: Losses can occur even to the most skilled traders.
Third-Party Dependency: Your results are contingent on the platform's reliability.
Over-Reliance: It is not wise to follow a trader without learning the strategies first.

However, platforms such as Combiz Services Pvt Ltd are able to considerably reduce these risks through the use of strong automation, risk management tools, and reliable trading execution.

Conclusion

Copy trading is a great way for beginners to enter the stock and forex markets, gain experience, and potentially earn profits. A trustworthy copy trading platform is a must for ensuring automation, risk management, and smooth execution.In India, even though brokers like Zerodha and Angel One are often preferred, Combiz Services Pvt Ltd offers the necessary tools for copy trading to be efficient and scalable.

Whether you are a beginner or a trader who wants to automate several accounts simultaneously, a copy trading platform is a vital component of contemporary trading.