If you're one of those traders who don’t have the time to analyze the forex market, but you still want to trade than you should consider forex mirror trading. A forex strategy developed in the late 2000s that allows investors to copy the forex trading behavior of experienced and successful forex investors from around the world. Mirror trading was initially only available to institutional clients, but was later made available to retail investors.
Mirror trading is known by a number of other names, but they all mean the same thing. Social trading and copy trading are probably the two most well-known names. Regardless of what you call it, mirror trading is the practice of following someone else trades. Newer traders can follow along and learn from professionals or those who simply prefer the mirror trade to other forms of investing can build their portfolios.
If you're tired of looking for the perfect strategy and sick of your emotions getting in the way, exiting too early on your winners and not pulling the plug on the losers, it may be time to consider mirror trading. Having become extremely popular in the forex market mirror trading is a way to mirror or mimic the ways of winning traders. Sounds simple and useful enough, but before a trader begins throwing real money at a live mirror trading strategy there are a few things that need to be considered.
There are two sides to every mirror trade; the pro and the follower. The pro is the one who hosts an account, follows the market and makes regular trades based on a strategy and system. The follower, also known as a mirror trader, is the one who searches for successful traders and then mimics their moves. This can be done be linking accounts for automatic trade execution or it could be done by entering trades upon a pros recommendation.
The decision of whether or not to use a mirror trading strategy is an important one. After all it is your money. Closely scrutinize all the statistics and make sure it is appropriate for your risk tolerance and capital available. Setting up a mirror trading strategy and the appropriate account is relatively straightforward and will generally take less than a week. Before trading, be aware that markets constantly shift and past performance is not always indicative of future results.