Nigel has been in the regulated financial services industry for nearly a decade, has previously owned a financial brokerage and has written many times for sites relating to personal finance and trading.
As Malaysians, we are always caught up with work and the traffic in peak hours, which is why we have little to no time to personally invest or trade, this is why copy trading is popular in Malaysia. In this article, you will be given tips and tricks to start copy trading right away!
Copy trading is considered as part of the widely popular social trading, which allows an individual to copy the trades that are run by the individual that is selected.
Copy-trading works in a few ways:
Trading is essentially a skill that takes hours to years of knowledge to be able to effectively understand the market. With copy trading, you technically require little knowledge because you’re trading with the skillsets of the traders you’ve copied. This way, a newbie can take advantage of an experienced trader’s expertise.
A common strategy is that you can treat the well-performing traders as your fund managers and diversify your funds to a few different traders. This is so that you do not need to put all eggs into one basket. Besides, you can copy as many traders as you want!
This is both a pro and a con. The reason being is because when you copy the trades, you do not make decisions for yourselves. This will cause you to rely on the traders instead of building up your trading knowledge and experience.
Choosing a well-performing trader is risky. This is because that trader might be highly profitable last week but the week you copy that trader, he/she lost most of the trades, and you as the copier will suffer similar consequences.
Below will be a quick summary of the highly-rated brokerage platforms for copy trading:
Copy trading may sound easy but it does come with high risk. Although time might be a factor, it is recommended to do proper research and equip yourselves with enough knowledge even before you start applying copy trading in Malaysia. Remember to always make informed decisions and of course, happy trading!
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