Why do We Use Copy Trading to Earn Extra Money Most novice traders begin to wonder how to become successful in trading on an exchange. This happens because there were many examples of people who do not have special knowledge and skills in this field. Therefore, they lost their finance when they worked in online trading. To rectify the situation and save the reputation of this industry, brokers decided to issue various training programs that provide everyone with the necessary information. In this article, we will talk about copy-trading. Copy-trading Definition Copy-trading, also known as social trading, is a specialized system for copying traders' transactions on stocks. Each successful trader is looking for opportunities to simplify and automate trading, which will free up his working time. Today, this system allows anyone to create the conditions for making money in the binary options or Forex trading market. All you need to do is copy trades! Copy-trading demonstrates very high efficiency, which is actually not surprising because it is simpler than most other existing methods that are used by traders. Social trading does not require you to have special knowledge about ongoing transactions in the market (technical or fundamental analysis). It is also attractive because users are not required to make financial investments, and this is very important for novice traders. All that is required is to turn to a professional broker who will provide you with all the necessary assistance and introduce you to the extensive possibilities of social trading. The Pros and Cons of Copy Trading We have identified the main advantages of copy trading: Simplicity. You can work without the necessary knowledge base, which allows beginners to start working in trading immediately. Availability. Thanks to the easy process of registration, you start using this strategy in a few minutes. For example, you can use Alpari copy trading for this purpose. Efficiency. It is believed that there are no simple mechanisms and techniques in trading, but this is not entirely true. None of the existing indicators can be absolutely accurate. But this strategy has higher profitability since it is based on the experience of other participants in the system. Traders individually can make mistakes, but if you collect their opinion into a single whole, you will get an accurate forecast. Of course, mistakes can be made even here. But when it comes to newcomers who do not have a good knowledge base, it is difficult to find something more effective than copy trading. The ability to choose a trader and his trading tactics that best meets the stated requirements. From a large arsenal of traders, you can select a spiritually close person. Based on monitoring the trading strategy of traders and analyzing the parameters of interest (the number of profitable/unprofitable transactions, the duration of the transaction, the drawdown value, etc.), even the pickiest person may well find a suitable seller of signals. The disadvantages of copy trading include the lack of statistics on unpopular transactions. It is up to every player on the exchange market to use copy-trading techniques or not.