Is mirror trading suitable for you?

Author: Forex Live | Category: Education

Mirror trading is an increasingly popular trading method that enables investors to save valuable time and energy in conducting their own market analysis before entering a trade.

Also known as social or copy trading, its core advantage lies within the power that it gives to traders to compare among several strategies and copy the ones that fit them best.

Simply put, when you mirror trade, you copy the open positions of other traders who belong to the same mirror trading network.

In Kawase cMirror, our performance analysis tools, which show profit percentage in terms of ROI, total pips earned and total mirrored volume, can easily help you to determine the popularity and profitability of a strategy. Once you choose a strategy to mirror, all orders will be executed automatically.

Besides performance analysis, traders should consider the following factors before pursuing mirror trading:

• Investment goals
• Risk tolerance
• Investment capital
• Preferred currency pairs

Mirror trading for beginners

It takes a great deal of time, patience and experience to analyze the ever-changing markets. If you are a novice trader, you may already feel confused by the trading jargon, the complexity of technical and fundamental analysis and the various trading styles that you could adopt.


With mirror trading, novice traders can:

• Enter the trading world without having to do the learning first
• Begin to research and understand different trading strategies
• Enjoy an automated approach to trading which could potentially perform at a similar profit

percentage as in the historical reports.Mirror trading for busy people
Since mirror trading is an automated approach, it allows those with little time to follow the lead of other traders and benefit from following their strategies without having to sit in front of a screen for hours.

Kawase cMirror features the following benefits:

Easy to control

The most important decision mirror traders have to make is who to follow-again, keeping individual trading goals in mind. That said, should you follow a trader and later change your mind about their approach, our innovative trading platform will allow you to stop (and start) mirroring instantly with the click of a button. This means you're not obligated to follow a particular trading style for longer than you wish to. When mirroring another's trading strategy, you can also adjust your risk exposure to prevent losses.

Transparent trading

While you might not have the time to watch the markets day in, day out, detailed analytics will help you to understand more about the strategies you may wish to follow. Be sure to read and understand these before proceeding to the automated stage.

Take into account things such as:

• ROI history
• Balance and Equity values
• Past trading performance

As evident from the above, mirror trading is an intuitive, easy way to make trades and is ideal for both beginners and those with minimal spare time to watch the trading charts.

The automated quality of mirror trading is a highly attractive feature, but be sure to also research strategies thoroughly to ensure you know what kind of trades will be executed.