Follow Trade Definition

Follow Trade or Copy trading is more or less what it sounds like. Copy trading is a term in stock trading, which can be understood simply as a tool to help investors copy another person’s trades You choose an expert trader to follow, then copy their trading movements. Say trader you’re following buys 100 shares of a particular stock. As a result, you’d also buy 100 shares of that stock. If they allocate 5% of their portfolio to a specific stock sector, you’d do the same. The key is choosing a trader to follow whose investment style and goals align with yours. For example, if you invest conservatively then you’d copy someone with a conservative trading bent. Likewise, if you’re a growth investor then you shouldn’t match the trading activity of a value investor.

Advantages of Follow Trade 

Copy trading creates opportunity to leverage someone else’s investment knowledge and experience. You don’t have to analyze stock market movements or trends to decide which stocks to buy, sell or hold. You can simply follow a pro-investor. Say you’ve picked someone who consistently generates high returns in their portfolio. As a result, copying them would theoretically allow you to do the same.