What is Copy Trading?

Reading time: 10 minutes

Last updated: 06.05.23

Daytrader

Stephan Bender

Advisor

Investment

In this article I would like to give you an insight into a highly profitable investment opportunity. I'll show you what's behind copy trading, how it works, what opportunities and risks it brings and how you can profit from it immediately.

With copy trading, you don't need any stock market experience. In this case, it is not your expertise that matters, but the years of experience and skills of professional traders. You do not have to actively trade on the stock market. A professional will do this for you by copying the trades 1:1. How the whole thing looks in detail and how you can profit from it, you will learn in this article. At first I was extremely skeptical but what happened was really awesome. Because I have also tested it. You can see my conclusion at the end.

If you would like to get an insight into the best traders in advance, then join our Bull & Bear Telegram channel now. There you will receive the results of the traders on a daily basis.

Table of contents

The most important in a nutshell

How does Copy Trading work?

As the name "Copy Trading" suggests, it is about copying real trades on the stock exchange. Whether there is traded with shares, futures or similar, does not matter. You take a certain part of your capital & invest it in the trading of a professional trader. But do not worry! The trader does not trade with your money, but with his own. Your capital is safe with a broker all the time. He has no access to it at any second.

As soon as the trader opens or closes a position on the exchange, this also happens on your account. If the trader makes 5% plus, you also make 5% plus. If he makes minus, you make it too. The trades are copied 1:1. How you can set up such an account with one of the most reputable brokers you will learn later in this article.

How do you & the trader earn money?

Now you already know that you can earn money by copying trades. But how does it look in practice & from whom does the trader actually get his money?

First and foremost, a professional trader earns his money on the stock market. Every day he opens and closes positions on the market and thus makes profit or loss. With the help of copy trading he creates a fancy additional income. Through copy trading, the trader receives a commission from the profit of his copy traders once a week.

Here is an example:

You deposit 1000€ in your account. The trader makes a plus of 3% on the first day. So you get 30€ paid to your account. The next day he makes again 3% profit. Now you get again 3% paid to your account. Only this time the percentage is calculated from your new capital. So you get the 3% calculated on the 1030€. So we are already at 1060,90€. This is where the interest effect comes into play. The invested capital grows thus faster, since received interest is directly reinvested and not spent.

Let's say the trader has made a profit of 200€ at the end of the week. From this 200€ the trader gets a commission in the amount of 30%. In our example this would be 60€.

That sounds pretty fair and like an interesting investment. You don't have to do anything for it and can watch your account grow. It's a win-win situation for both parties. Of course, the whole thing gets really interesting when you have a higher amount on your account.

Our compound interest calculator

With our compound interest calculator you can calculate your return. Just enter your deposit, the period and the % profit per period.

Notice: The calculations are not a guarantee of profit, but are for illustrative purposes only.

What are the opportunities and risks?

Now that you know what possibilities are behind the Copy Trading, you surely already see the chance to earn really fat money. Well, with Copy Trading this is also possible.

You get the opportunity to benefit from the know-how of an experienced trader without being active on the stock market yourself. So you don't have to deal with what stocks are, but can already earn your first money on the stock market with Copy Trading.

What you also need to be aware of is that you need a professional trader that you can trust. Before you give your capital temporarily out of control, you must be aware that there are not only positive days. Even professional traders have minus days on which losses are made. These are part of it and are quasi the expenses of a trader. A trader with many loss days is therefore an increased risk to your capital.

Pu Prime as a reliable broker

The most important thing for traders and investors is not only a constant return, but also a successful cooperation with a reliable broker. With PU Prime, the Smart Scalp FX team has brought the perfect partner on board.

What's in favor of PU Prime?

Learn more about PU Prime here.

The most successful traders

Our team has found out a successful trader for you on PU Prime. In the process, we came across the profile of Smart Scalp FX. If you want to know how to connect to the accounts, be sure to check out the articles about it.

If you want to stay up to date with the best traders, join our Telegram channel now. There you will get daily insights about the results of the traders. So you can watch it in advance in peace without investing your capital.

My conclusion

Copy trading is a very interesting investment opportunity. However, only if you have experienced traders at your side. My recommendation is never to invest your investment in only one copy trader. I have now divided my capital between 6 different copy traders and have already increased my investment and profit from it every day.

If you think that it is still not possible to make money passively and automatically with Copy Trading, then just invest a small amount and try it out for yourself.

If you just want to observe the results of the traders in advance, then join our Bull & Bear Telegram channel Telegram now.

Please also note the risk disclosure and liability.