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according to research Written by Charles Shawab UK, young generations In particular, Z and Millennials, unlike Gen X and Boomers Accepting online trading as one of the prevailing additional income activities.
This makes many of them resemble circulating thinking but lacks sufficient experience, and therefore the issue of active investment strategies is still open and usually not used.
Younger investors also adopt broader investment opportunities, such as copying, which are usually not welcomed as their old counterparts.
However, for novice investors, even if they are more sophisticated, strategies to benefit from major traders and thinking about it as a means of diversifying the danger of the human factor may be subjective.
Sometimes, an influential vision boasts of success and dropping the referral link has a significant impact on investor decisions.
So, the transcription trading is no longer just trading It is the economy affecting its full power.
High returns, hidden fluctuations
Given the social nature of copying, there is a real danger in people who put a lot of weights in well -known characters in this industry, and specifically, their successful trading can be easily repeated.
The biggest risk of copying is not the market It is psychology.
This situation reminds us of the wave of celebrity coding approval that tends to the surface during every emerging market, and often leaves experienced merchants feel uncomfortable when these influencers offer strange promises about symbolic projects.
While the presence of celebrities on the plane can definitely give the project a popular boost, it does not guarantee that it is legitimate.
However, despite the history of failures, many novice investors are still excessively affected by prominent people in this industry.
Diversification, although it is a common approach to investment, can also be very illusion.
Just publish a person’s money through 10 different major accounts that will not really protect market behavior at the end of the day.
In the world of encryption, some aspects of trusted diversification can only be in mixing the same copies, while realizing all its warnings, with long -term investments or alternative investment methods such as stokeing.
The bottom line is that investors do not cause common risks to the trading of copies collectively, but through the same platforms.
It is their duty to deliver risks and performance.
When the metrics of return or withdrawal leave unrealized profits and losses, investors can be misleading easily, which leads to unrealistic expectations based on partial information.
Follow -up protection at the platform level
When it comes to protecting copying ethics, trading platforms usually focus on the main issue The known “strengthening” of the known “reinforcement” of the account.
This happens when someone prepares multiple accounts Et says, four The “purchase” positions opens on two while putting “sale” on two other sites.
After closing two “victims” accounts, the remaining returns may show great returns Let’s say, 80 %.
The trader can then repeat this course, and it is ultimately characterized by an account with, for example, 230 % return.
At that point, even slight gains Like one percent It can lead to a small percentage growth Because of the vehicle.
This creates a false sense of fixed profitability when it is actually just an artificial batch from the beginning.
Investors who see this type of performance may think that they can expect similar results, but they only buy a smart illusion.
Moreover, there are not much incentives for platforms to closely monitor how traders act.
After all, it’s just a market Some merchants may be relaxed and cautious, while others are expected to act more. There is a place for both types.
The only development here is that instead of pushing a casino -style wheel, someone can click the “Continue” button on a severe aggressive merchant.
All in all, the trading platform can provide two full tools to protect investors Risk limits for signals and risk boundaries for investors.
When it comes to risk limits for signals, it must be implemented in a way that prevents users from changing them immediately. Otherwise, it does not serve its purpose.
When the group’s limit is exceeded by the user, the statute interferes in order to face the risky activity. This is the really effective way to protect investors.
Moreover, the platforms must clearly transfer those limits to investors.
For example A tougher risk limit will be imposed on this main trader If his account is lost, for example, 20 %, all situations will be closed automatically. “
This type of executive procedure will provide more realistic protection.
The same applies to followers The platforms should allow them to rely on automatic controls such as stopping sills or risk complications.
Let’s say that the investor set a loss of $ 500 for the main trader. If the loss reaches this amount, all the stimulated situations will be closed and the subscription will be terminated.
Latest words
When entering the world of coding copies, investors must understand that it includes risks to its nature There is always an opportunity to win or lose.
The main principle is simple and global Never bid farewell more than you are ready to lose.
Once this deposit is made, there are several risk management ways effectively Diversification by following multiple signals, setting clear risk limits and using low -risk complications.
If these precautions are in place, the loss of money becomes much more difficult, but at the same time, we will not get a wealth easily as well.
Sergey Retsfin is a manager B2CopyB2Broker money management platform, Fintech Global Financial Institution Solutions. Sergey is an experienced professional in Fintech that holds more than 15 years of experience in copying, brokerage and trading technology.
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Disclosure: The views expressed in Daily Hodl are not an investment advice. Investors must do due care before making any high -risk investments in bitcoin, cryptocurrency, or digital assets. Please note that your transfers and trading on your own responsibility, and any losses you may bear are your responsibility. Daily Hodl does not recommend buying or selling any encrypted currencies or digital assets, and Hodl Daily Andersor is an investment. Please note that the daily Hodl participates in dependent marketing.
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