Copy trading is a great way for people to start off in the market. It helps you figure out how the greats think and allows you to incorporate their thought processes into your own approach. Many people go their whole careers simply copying other people’s trades, but is mimicking others really what you want to do with this opportunity that you have at this current point in time? While it can be a decent way to earn a living it is by no means a way in which you can get rich.
You see, with copy trading you have a lot of people doing the same thing. This means that the market is going in a certain direction. If an influencer purchases a stock, everyone will end up purchasing it which means the price will skyrocket. If an influencer sells a stock, the same would happen which would lead to a price decrease per share.
A good tactic to use would be to do the opposite of what an influencer is doing. If an influencer sells and brings the price down, take the opportunity to buy as much as possible. Wait for the influencer to buy and when the stock price reaches a peak sell some of your stock and earn profit on it.
This is another way to implement copy trading into your arsenal. It is a great stepping stone to becoming an independently successful trader in your own right. Eventually you would want to progress to a point where you don’t need anyone’s help. Rather you would understand everything about the market and you would use this to your advantage as you build your fortune bit by bit until it is massive.