A Complete Guide to Mirror Trading
Have you been unsuccessful in your past trades? Do emotions tend to get in the way? Are you looking to make passive income? Mirror trading is the answer to all your problems today.
Mirror trading is also known as copy trading. This method involves copying professional traders who’ve had their fair share of winning trades. Mirror/copy trading works in relation to stocks, shares, and currencies – fiat and crypto.
In this complete guide to mirror trading, we’ll be looking into what mirror trading is, why it’s good, and how it works.
What is Mirror Trading?
Mirror trading requires you to have a fully-registered trading account, preferably with one of the many reliable mirror trader brokers that offer you arrays of trading options to choose from.
You are completely in control of your funds, but engaging in mirror trading means that you don’t need to make everyday trading decisions.
Instead, you can browse through a list of professional traders and copy their most profitable strategies – or successful trades in the case of copy trading. In other words, all it takes is a skilled trader to follow.
The Bright Side of Mirror Trading
Ease of use must be the most obvious one. Mirror trading requires little to no time for scrupulous market research. To be able to make confident trading decisions, one needs to have an understanding of how the markets work as well as feel at home with different strategies and technical analysis tools.
Another advantage of mirror trading is that it saves time. Traditional trading – Forex or crypto – equals tremendous amounts of time spent monitoring your computer screen. When it comes to mirror trading, your constant presence online is not a must.
If emotions tend to get in the way and prevent you from making weighted trading decisions, this method may be a solution as it will conveniently remove the human factor from the equation. Your mind will remain clear of both the overwhelming excitement and the paralyzing FOMO.
For more benefits of this type of trading in a nutshell, see our blog post The Benefits of Mirror Trading.
All things considered, you shouldn’t rely blindly on someone else’s experience and success. Mirror trading is a gem of a track record. You can – and should – learn a lot by studying the strategies and trades that you copy.
Saying mirror trading is all about rainbows and butterflies would be a lie. There are some disadvantages as well.
Some traders may be tempted to just copy someone else’s strategies all the way, without putting effort into self-education and self-development. Before starting to mirror trade, everyone should realize that it’s not the magic bullet – it’s better to learn first-hand from the successes of professional traders, not get stuck in the automated system.
Moreover, it’s important not to break from reality. No trader is successful 100% of the time. Everyone should be prepared to win some and lose some. It’s impossible even for the most skilled and experienced traders out there to beat the markets on a consistent basis.
Is Mirror Trading Profitable?
There’s no definitive answer to similar questions. Yes and no.
On the one hand, you may get extremely lucky, and the trader you choose to copy your strategies or trades from will be consistently profitable in any given conditions.
On the other hand, there’s no guarantee that the success will be consistent, at all. Remember that all trading comes with a risk.
How Mirror Trading Works
What steps do I need to take to become a mirror trader?
Pick a platform
To start mirror trading, make time to research mirror trading platforms. You need a great one.
The best platforms are regulated and transparent. Equally important, they are exchange platforms that offer a diverse range of crypto assets.
Some exchanges are more suited to copy trading. Why? They are able to execute trades at very fast speeds meaning that you can copy-trade without delay. That is why CoinMetro is such a good option.
Select a trader with the right profile
The next step is selecting a trader that matches your goal. Check out our popular blog post 3 Tips for Mirror Trading for reference.
Mirror trading platforms will usually have certain features and tools to help you select the trader who’s right for you. These are based on the trader’s performance, current capital, number of followers, and other metrics.
Don’t bet everything on one trader
As a rule, mirror trades are set at a percentage of your account – from 10% to 20%. It will never be 100% as all trading is risky.
We recommend betting on a number of different traders and monitoring your investment account. The best thing is that betting on a selected trader doesn’t have to be permanent and will mostly depend on mirror trader results, i.e., the performance of the selected trader’s strategy.
Copy Trading with CoinMetro
If you’re ready to start copy trading safely, CoinMetro is a great place to start.
Hop on a TraM
We have developed a user-friendly copy trading platform known as TraM, short for Trade Mirror.
TraMs can be public or private, with the vast majority being private. Public TraMs have gone through a thorough vetting process by the CoinMetro team, and the managers are experienced traders with a proven track record. As the name suggests, private TraMs are not visible to the public and are only accessible via a link that the manager can share.
Are there any fees?
There are no costs to follow a TraM. Allocate € or BTC, and you will copy the trades made by the manager. You are the one managing your money, so you are free to unallocate your funds any time.
However, if you make a profit, your manager will take a small management fee. The fee is chosen by the manager and lies in the range of 5-25%.
Start your own private TraM
Once skilled enough and ready to lead others, anyone is welcome to start their own private TraM on CoinMetro. Private TraMs are perfect to share with friends, family, or followers.
Learn more about TraM
Would you like to learn more about TraM? First, we have a step-by-step article on how to follow a TraM.
If you want to dive deeper into TraM, check out Under the hood: TraM (Trade Mirror).
CoinMetro’s support team is available 24/7, so if you have any questions or feedback, don’t hesitate to contact us.