The arrival of Copy Trading has brought a new revolution in the world of financial markets. It introduces a new dimension to investment and negotiations. This technique makes it possible to bet on investors as we would on financial instruments
Today, we find different profiles of Copy Traders who each have their own strategies. Then discover the archetypes of Copy Trader according to eToro…
The “faithful” Copy Trader
In this category, there are Copy Traders who observe and analyze several investors before deciding on one of them. From that moment on, they remain loyal to this “fetish” investor. In general, everything is fine at first. Then there are some empty passages. Investors continue to remain unconditional, knowing that everyone can have bad times. Here, it is important to know how to cut the cord in case the copied investor really drifts away.
The “copier” in all its splendour
The “copier” makes it his duty to be inspired by the best. It is based on the most followed investors, but also and especially those who have proven themselves over a long period of time. Here, investor performance is practically guaranteed. The only problem with this attitude is that the trader does not take the time to set up his own strategy and carry out personal analyses. In addition, an investor may lose his sponsor, but his popularity may remain high.
The “eclectic” Copy Trader
Here, we find a Copy Trader who is not satisfied with just a few investors. He bets on several of them (sometimes hundreds). Concerned not to miss anything, he distributes his bets among several investors. Its objective: to avoid large losses. The risks are indeed reduced. The disadvantage, the gains are also limited. If losses are mitigated in the event of an investor’s slowdown, gains are also limited if an investor achieves a feat.
The “demanding” Copy Trader
This is a Copy Trader profile that stands out from the crowd. It is the one that will not automatically follow mass movements. It is not the popularity of this or that investor that will push him to take inspiration from it. On the contrary, it literally rushes to emerging talents, helping to reveal them. This behaviour involves a certain risk, it is important to remain cautious anyway. Or to test new investors in free mode to avoid ruin.
The “flourishing” Copy Trader
It is the Copy Trader who has matured his strategy. He makes sure to vary the investments and does not hesitate to bet big on the most promising ones. It combines popular performers with the new rising stars. The selection is always done sparingly and this trader does not hesitate to leave out investors who do not keep their promises. He is a very active and reactive Copy Trader, he quickly joins the ranks of copied investors!