When following copytraders, avoid common mistakes. Discover why evaluating strategy history, adequate capital volume, and excessive greed are critical to protecting your investments on platforms like ZuluTrade , FP Markets , IC Markets , and Tickmill CopyTrade. Find out more here.
It is critical that people who follow copytraders are aware of three main mistakes to avoid:
- Not Evaluating the History of the Strategy Before Entering: Most copytrader strategies do not survive for long. Around 70% to 90% of them break before completing one year. Therefore, it is crucial to choose strategies with a consistent history, of at least 6 months to 1 year of good results. It is also important to analyze the drawdown – if it is greater than 30% or 50%, it is a sign of excessive risk. Reliable platforms, such as ZuluTrade , FP Markets , IC Markets and Tickmill CopyTrade, display these values, if the platform or broker does not display them, you will be left out.
- Adequate Capital Volume: Respecting values is essential. If a trader or platform recommends having 5x the amount to invest, it is not viable to invest just 1x. Choose strategies that depend on values that are in line with your financial capacity. Platforms such as Fortunax , Robot Scalper Tickmill TCM and Fortunadozer offer options with more affordable prices (from 50 dollars).
- Excessive Greed: The promise of getting rich quick is tempting, but it is important to avoid strategies that promise unrealistic gains, such as 50%, 100% or even 1000% in a single month. Strategies that offer such high returns generally involve extreme levels of risk and, in the medium to long term, lead to failure. Be aware that even when you lose, the strategy owner may be making a profit, even if it is only in the short term.
Therefore, it is essential to be judicious and realistic when choosing copytrader strategies , focusing on consistency and adequate risk management. Avoiding these mistakes can help you protect your investment and achieve stronger results.