Copy Trading: A Golden Ticket or a Fast Track to Zero? 📉📈
Since Binance rolled out Copy Trading, everyone’s been hunting for that "master trader" who can grow their bags while they sleep. It sounds like a dream, right? But in reality, it can turn into a nightmare if you don't know the rules of the game.
1. Don’t Let ROI % Blind You!
Seeing a +500% ROI on a profile is like eye candy. But here’s the cold truth: Past performance is not a guarantee of future gains. Often, those massive gains come from "degen" leverage (high risk). One wrong move by the lead trader, and your balance could be wiped out in seconds.
2. My Pre-Copy Checklist:
Before I hit that "Copy" button, I look at one thing: Maximum Drawdown (MDD). If a trader is risking 60% of the capital just to make a 10% profit, that’s a red flag. I’d rather follow a consistent trader with 20% yearly gains than a "hero" who gambles the whole portfolio.
3. The Psychology Trap
The biggest mistake? Panic-stopping. Many people stop copying as soon as they see a few days of "red." If you’ve done your research and trusted a trader, you have to give them room to breathe. Paper hands usually exit right before the recovery starts.
Are you currently copying anyone? What’s the number one metric you look for before following a lead trader? Let’s talk in the comments! 👇
#Copytrading #TradingPsychologie #cryptotips #Binancesquare $BTC $ETH