Relax trading was a very famous copy trading via the ctrader platform.
We write “it was” because it burned all the capital … we are talking about 10 million euros.
Evidently it was not managed by professional traders, it did not control risk … yet it was among the most famous … this demonstrates the lack of transparency of some of these systems and shortcuts into which many people fall … simply for not doing the thing most obvious … or study and study and study. It is not known what strategy he applied but it was certainly not complete and solid.
Relax trading is one of the many copy trading present in various platforms such as:
- cTrader copy
- and others
Can all Copy trading burn all deposits?
After this event, many people who had entrusted a portion of their capital to copy trading begin to wonder if they are at risk.
The answer is yes.
It is natural that any copy trading manager can be wrong and burn their capital.
The answer is simple.
Copy trading is often run by people who are not professional traders but who just want to earn from commissions. They often hide high-risk trades just to generate as many commissions as possible. When markets are volatile the risk of burning increases dramatically.
Useful tips for copy trading and not to take risks
If you are convinced of investing in copy trading then I recommend that you take some notes before depositing.
- Who is the manager?
- What has he done in the past?
- What risks did he take to achieve such performances?
Often one looks at a yield curve that apparently looks bullish and profitable. But remember that every good financial manager is also subject to risk and therefore must also evaluate the stop losses.
If the curve tends to rise over time without stop loss phases then something is wrong … there is a risk.
There is no bullish curve without a minimum downtrend. A good trading system has stages of losses as well. A yield curve of a trading system is all the more natural the more phases of losses occur.
Of course, the goal is to make a long-term profit. So in the short term there will be some stop losses …
Deposits to be used for copy trading
Personally, I don’t like entrusting capital to third parties, especially when I don’t know their strategy and their risk management. But if I had to entrust a capital for a copy, I would go to evaluate a very small part of my assets. The important rule to follow is that the deposit for copy trading must be a small amount, so that if lost it will not cause problems for you and your family.
Financial and online trading training
We remind you that one of the best ways to invest in the stock market is to invest in your training. There are now numerous professional training channels, both free and paid. For example, one of the most popular free online trading courses are the live XM Webinars with professional traders in Europe and in the World.
Studying, discussing, deepening … and even making mistakes … is the only way to improve. The trade of the trader is not easy, it is complicated, it is also tiring mentally.
This is why many are looking for shortcuts such as copy trading, social trading or robots and algo trading. But the truth is that profitable traders are people who have hardly prepared themselves to face the markets, to find the rule that allows them to buy and sell and generate profits.
Not sure? will it be an investment scam?
If you want to discuss or if you want information on a copy trading or other investment proposals you can write to info @ piptrendacademy. com and we will give you our opinion … without obligation!