What is Copy Trading, what is Mirror Trading, and how do they differ?

I’m sure you’ve thought there must be an easier way to trade and profit from the markets. If you have then you’ll be keen to hear about how mirror trading and copy trading can make trading simpler. Mirror trading has been around since the early 21st century and consists of auto-trading the signals provided by a variety of (usually) programmatic trading services and signals. Copy trading is similar in that trades occur based on an outside source, but in this case the auto-trading works by copying the trades of human traders. A similarity between mirror and copy trading is that they are both types of social trading. That’s when rather than directly analyzing assets and placing trades you follow the lead of other traders and place the same trades they place. While there are similarities, there are also differences, which you’ll understand through a more detailed explanation of each type of trading. Mirror trading is the older of the two, developed nearly two decades ago as a way to invest large amounts of money to follow the trades placed by many auto-trading systems. Mirror trading has a more investment oriented mindset, but because it follows a vast number of auto-trading systems, it requires a large upfront investment, and the ability to withstand a huge number of trades. This can make mirror trading intimidating to new traders and to those used to placing a limited number of trades. Because of the massive amount of activity going on with a mirror trading account, it’s a good idea to keep close tabs to ensure everything is going as planned, and that you have sufficient funds to continue running the mirror trading account. Copy trading is a simpler approach to the concept of mirror trading and is a better alternative for new traders and those with smaller accounts. Copy trading has you follow the trades placed by other traders and “copy” them in your own account. In copy trading the volume is far less, and you have a choice of following individual trades or skipping them. You can also follow more than one trader if you like. Copy trading is more geared towards learning about the markets and different trading strategies. In copy trading the smaller volume of trades makes it much easier to follow along and see what’s happening. It also makes it easier to keep tabs on your account. And because copy trading follows a far smaller number of accounts it is easier to analyze the trading history and success rate of those you’re thinking of following.