It is commonly stated that forex trading is the easy way of trading and a quick way of making money through the buying and selling of currency pairs. However, you still can’t say that the person who has just started trading will make successful trades right from the beginning. Considering the market conditions and looking at the past performances of certain currency pairs, the traders need to have sound knowledge of various trading strategies in order to trade successfully. Being a new trader you might not have your own strategy or your knowledge might not be enough to come up with effective strategies.
This is where mirror trading steps in. This is quite a new concept in trading and internet and online social networks have given rise to it. As the name suggests, mirror trading takes place when a trader mirrors or copies the trades of another trader. As obvious as it is, the trades are copied by new traders and the traders whose trades are being copied are seasoned traders with great trading records. The modern online trading platforms give traders the access to these strategies and allow them to do mirror trading automatically, semi-automatically or manually.
In order to copy the trades of other traders you must have an account with a broker. You could have this account with a third party broker or an ECN broker. Almost all the brokers will give you access to a trading platform today and the mirror trading aspect comes as a feature of this platform. However, some platforms are better than others and so your mirroring trades will depend on the platform and broker you choose. The repository of seasoned traders whose trades are to be copied varies from broker to broker. Almost all brokers have a set of successful and seasoned traders on their platform.
Of course, to gain access to these features you must deposit some money in your account. Once you have successfully registered on broker’s website you will be given access to a host of strategies and their results. You can click on any trader or strategy in order to see the past results. This way you can assure that you are putting your money on a strategy that has been performing well in the recent times. The options on the platform will let you copy these trades automatically so your trades are conducted even when you are not on your computer.
You can copy the trades as is or make changes to them to make them suitable according to your way of trading. At the same time, you can copy multiple trades at the same time to take advantage of diversity in your trades. The results are shown to you as soon as your trades are completed and you can view the results of your trades on your smartphones and tablets too. Mirror trading is considered safer than bot trading that has been the conventional way of automatic trading offered by most brokers in the past. Mirror trading gives more control to the trader too.