Mirror is a trading strategy in forex trading with cut strategy successful forex traders from all over the world. Introduced in the late 2000s and was initially only used brokers to the clients of the institution, but now is also provided to retail investors. With investors trading mirrors could be spared from making decisions that tend to be emotional. However we need to know what are the risks of this trading mirrors before using it.
Mirror trading is commonly used by traders who feel less experienced, and want a shortcut by mimicking or cut the strategy the more experienced traders. In this way the trader can choose the strategy that best suits the purpose of the end result he wants. Another advantage of mirror trading is almost all the trading platform you can see the results live.
However, the way this has risks. We will not know whether the trading strategy of trader we follow will end profit or loss. We can't just rely on the performance of our options trader from track recordnya in the past. Sometimes after a loss a new streak can generate profit, or profit after consecutive losses.
The only way to minimize the risk of trading is by checking mirrors trader our choices carefully. Try to find statistical information trading performance, as the largest ever experienced losses and gains the largest ever obtained. The other risk is about the magnitude of the risk on each trade. If you just agree on a 2% risk on each trade, but traders who You follow using Bollywood risk 5% then you have risked your account. Many traders who ignore the risk per trade is simply because traders see that huge profits could be followed.
The risk of other trading mirrors can happen if you just follow a trader only. In this case you will depend largely on the trader. If he is your profit will profit as well and vice versa. To avoid the dependency you can diversify your account by following some of the trader, so that if one of them loss, your account is not so affected.
Most platforms mirror trading work off-line, which means that your computer could be off, but trading remains running. This is beneficial because you don't have to monitor your computer screen to make a trade. The risk is you can't intervene manually when You follow the strategy that turned out to be unprofitable. To overcome this you can choose the trading platform that allows you to make changes to the strategy you follow.
Despite some risks the mirror trading has been widely used by forex traders and many of them went on to successful elections caused profit.
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