If a trader has been unsuccessful at trading using his or her own strategy or if they find that their emotions constantly get in the way of sticking to their strategy, maybe it is time for that trader to look into Mirror Trading. Forex Mirror Trading is a form of what is also known as copy trading and social trading, but it has some very distinct characteristics of its own. In Mirror Trading a Signal Provider (experienced and successful trader) uploads their strategy to a Mirror trading platform. This platform then allows other traders to automatically mirror that provider’s trades. The Signal Provider’s strategy is tested and proven and then it is available to others to use.
When a trader chooses to use Forex Mirror Trading, he or she holds their own trading account, is in control of their own funds but does not have to make the everyday trading decisions. This is a big advantage to those who want to start trading without doing a tremendous amount of research and reading about how to make those decisions. Another positive is that the trader only needs to devote an amount of time to Forex trading. It is important to monitor your trading but with Mirror Trading you do not have to be involved on a constant basis because your trading is automated based on your Signal Provider.
Another significant advantage to Forex Mirror Trading is the elimination of the emotions involved in Forex trading. People can very easily trade based on their emotion and get swept up in the excitement rather than using only their strategy. Mirror trading removes the human emotion variable from trading decisions.
The proportionality of this type of trading is also a large plus. Even if the Signal Provider is trading with hundreds of thousands and the inexperienced trader is starting out with only thousands, the success of the trades is proportional. This means that you can either decide to trade the same amounts as your Signal Provider or with a smaller proportionate amount and then Mirror those trades on a smaller scale.
One of the best things about Forex Mirror Trading is the ability to see the track record. Of course, there is no guarantee that past performance will continue but being able to see how this experienced trader has fared in every previous trade should be a very good indicator of how they will perform in the future.
There are some negatives to Forex Mirror Trading. Since there are no guarantees of performance, you are relying on someone else’s ability to be consistent. Maybe the Signal Provider has a life altering experience and changes his or her financial philosophy, but you won’t know that until your portfolio does. If you rely on someone else’s research and education, you might not truly understand the trades you are making and that could be detrimental as well.
Although Forex Mirror Trading can be a great choice, it should only be done carefully after making sure you are comfortable with the Signal Provider you choose and with thorough understanding of the decisions you are making with your money.