Copy trading is also known as social trading, mirror trading, or auto trading. In copy trading, instead of being on the frontlines, you stay in the background. You find a trader with a good portfolio and then you “copy them”. This means that you basically make a duplicate of their portfolio.
All of their trades that are open get copied to your account. Once this is done, every action taken by that trader gets mimicked in your account. Of course, you can set your maximum position size and regulate your spend.
Copy trading is great for people that are new to trading, with busy schedules, day jobs or busy family life and they do not have time to learn how to trade or want to risk their money with little or no experience. Simply follow a pro trader who has already mastered the art of trading.