What do you guys think about copy trading?
Let's discuss please
I've seen my friend use the Copy trading application, but I see my friend really didn't make a good profit, quite the opposite in doing the copy trading method.
According to my understanding, trading is copy trading, if you don't understand correctly the risks you get are greater than trading in general.
For example: as I have read the risk of copy trading.
* You have very little control over trading, because you only follow people.
* Trading results depend on other people, if you choose the wrong trader leader, you could lose money.
* Trading in the crypto market is very volatile and your trades have little break from the leader trader. Therefore, it is possible that the position or profit you get is different from that obtained by the leader.
* Your risk tolerance is not necessarily the same as the trader leader. Maybe as a beginner you only dare to face a little loss, while a professional trader already has a lot of capital and is not afraid to face high risks.
If what I read in the quote above really happened in copy trading, I'd better step back and trade as usual, except: I really understand the situation and market conditions perfectly and professionally.