Tricks to Make Money with the Mirror Trading Platforms

Thanks to the extreme ease of use of the automatic system that copies the trades of the experts, the mirror trading programs are enjoying great success.

This success, however, is overshadowed by the many negative opinions that can be read online. It is therefore legitimate to ask: "do you really earn with these platforms?"

How to lose your money with the Copy Trader platform

I can't give you a precise answer, but I'm sure most traders lose money.

How do I know?

I have been promoting several brokers since 2010 and from the statistics of the affiliate program control panel I noticed that:

  • About 45% of new Traders registered with a real account stop trading within a week.
  • About 25% quit within a month.
  • About 10% quit within six months.

Only 20% of traders continue to invest.

Potentially, 20% should match the number of winning traders, but I have serious doubts. Why?

Still comparing the statistics of the affiliate program, some traders who continue to operate deposit with some regularity. So, I suppose if a trader is making money it is useless for him to keep depositing.

Obviously these are just hypotheses, because on the control panel I don't see how much a trader earns or loses.

In this analysis I want to play the devil's advocate, assuming that only 10% of investors really earn.

Now, however, I want to understand how this 10% makes money!

Search for the mistakes of copiers

In British and especially foreign forums I opened a discussion with 100 people who complained to understand their flop.

Aside from 2 respondents who spoke ill of a popular Broker regardless, from this survey I found that:

  • All dissatisfied traders have tried the mirror trading platforms at least once, but none of them have used the program for more than 10 actual days.
  • They all started out with low starting capital. More precisely (rounded amounts).
  • 82 started the investment with a capital of 200 € / $.
  • 7 with 250 € / $.
  • 4 with 300 € / $.
  • 3 with 400 € / $.
  • 4 with 500 € / $.
  • All 100 have never planned a diversification of the investment.
  • 84 Traders entered the markets with no interest in the best times to trade, to consult an economic calendar or to gather economic news.
  • 76 Traders have copied at most 2 "Experts".
  • 61 Traders have invested only in a currency pair or a single financial asset.
  • 48 Traders have redeposited, paying between 50 and 200 euros maximum.
  • 27 Traders left the platform before they even saw the outcome of the trades.
  • No one has ever chatted with the Trader they were copying.

Very bad! From this survey I am not surprised that 90% lose money.

Given that trading is not a safe investment. If you want to make money with mirror platforms you have to do exactly the opposite of what these 100 gentlemen did.

User Guide

Even if it only takes 5 minutes to learn how to use it. It is essential to study it step by step.

  1. Fake trading on real markets.
  2. Practice giving stop orders (authentic parachute). Traders you copy are human beings who make mistakes.
  3. Intervene on the market (especially in real life). Mirror trading programs allow you to change orders and log out at any time.

Choose very patiently who to copy

Each Trader you copy has a personal card that lists his trades and characteristics.

The program shows you the ranking of the best Traders by asset category, in reality this ranking is distorted by the Trader's popularity. In fact, it is true that the platform highlights the best traders in the top positions, but they are also those who interact most with the community. The first traders you find are those who publish several posts and often intervene in social trading discussions.

Your goal is to find at least 5 Traders, each specializing in a specific currency pair or financial asset with a different risk appetite.

The capital to invest for each trader must also be diversified. While it is wrong to distribute the same amount equally for each Trader you copy.

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Example of Investment Diversification

  • Invest 100 euros on Trader 1 specialized on the EUR / USD exchange, operates with 1: 100 leverage at low risk with gains between 10 and 20%.
  • Invest 50 euros in Trader 2 specialized in Litecoin, leverage 1: 200, high risk.
  • Invest 80 euros with Trader 3 gold specialist, low leverage, high payout ratio.
  • Invest 70 euros with Trader 4 index specialist.
  • Invest 95 euros with Trader 5 specialist with Alibaba shares.
  • + Emergency balance. (*)

- By choosing 5 Traders with different characteristics, you can balance profit and loss by planning your strategy from the demo.

+ important still: no more than 10% was invested on any single trade.

To increase your profits, you have to choose unwilling traders:

  • To the overtrade.
  • Scalping.
  • High levers.

Deadly Sins

A flaw of these platforms is that traders earn a commission for each trader who copies them, consequently they have the convenience of doing a frenzied scalping. This negatively affects your investment if the trader you are copying puts in a series of wrong trades. Plus, if you started with a small deposit, this trade quickly burns your account.

This style of trading is very popular, so if you want to be able to make money you must have an emergency balance at your disposal.

The second trick to making money with trading mirrors is the most important: enough capital to invest

Again, from the statistics performed on the control panel of the affiliate program, the traders who continue to operate are those with the highest capital. This confirms the theory that the higher the capital invested, the higher the chances of making a profit.

In fact, in the slice that includes the winning traders (10%). They all deposited over $ 1000.

How much money to invest and why

With any platform, the minimum recommended trading capital is $ 1000. But with these programs they are not enough. Why?

The main problem for those who invest with little money with this program is that they risk being immediately out of the market.

Because you understand this, just choose a single Trader who does scalping and operates with high levers, rest assured that in less than you say you will receive a margin call alert from the Broker.

With a reduced capital your operations are barred to operations of less than the whole lot. The gains and losses are always proportional, but the real problem is that your trading is limited.

To protect your money, you cannot afford to invest more than 10% of the capital in a single trade.

By depositing 1200 euros (minimum recommended capital), you have:

  • 1000 euros to invest (max 10% for each trade)
  • + 200 euro emergency to be integrated in case your Traders make bad decisions.