Master Trader Selection — Step-by-Step Guide & Transcript

[00:00] 9 months ago I made a video about copy trading and  I'm here to update you on it is it a scam is it   too risky I'm going to answer your questions and  share with you the mistakes most people make when   it comes to copy trading so what is copy trading  copy trading allows you to copy the trades of  

[00:17] professionals when they trade to the Forex Market  you're going to be following all the trades when   they buy you buy the same thing happens when they  sell all the copy trading is automated and you   don't have to do anything except check the profit  or l plus copy trading is perfect for people who  

[00:32] just started to learn how to trade the Forex  market and want to make a bit of money before   going live it's also convenient for people who can  trade but are too busy to look at their screen and   monitor their trades now when it comes to copy  trading there are a lot of Brokers offering this  

[00:46] trading service but the one I use and recommend  is OCTA formerly known as OCTA effects OCTA is a   forest broker that allows you to trade the Forex  markets Commodities shares and indices now you and  

[00:58] I can't trade the market by ourselves and that's  where OCTA comes in they're a broker personally   I've known OCTA for a while they've been around  for a long time I have watched many Brokers come   and go and OCTA is still here OCTA effects copy  trading is available on web and you can download  

[01:13] the app on the Google Play Store at the time of  making this video it isn't available on the Apple   App Store what is available is the OCTA trading  app which is different from the OCTA FX copy   trading app now back to OCTA FX copy trading when  you log in you're going to see the tab for master  

[01:27] rating copier area master area area and terms  and conditions what you should focus on is the   Master's rating if you're on the mobile app go to  The copier area and tap on ratings to access the   master rating now slow down this is where a lot of  people get excited and make mistakes that could be  

[01:43] detrimental to their trading account what most  people do is pick random Master Traders that's   not the way to go now the first thing you need to  do is check the Master's risk score I recommend   you filter the risk score so that masters with  good risk score are at the top now the way the  

[01:58] risk score works is the have higher the score  the higher the likelihood of the master losing   your investment a risk score of 1 to two is good  run away from masters with a risk score of 5 to   six they may be profitable but the profit comes  with high risk and because you're starting out  

[02:14] you don't want that now after finding Master  Traders with good risk score you need to check   the Master's Equity this is important because  imagine you want to invest $200 and the master   you picked has an equity of $2,000 the master can  take a loss of $200 represents 10% of his equity  

[02:32] and he'll be fine but you on the other hand that  loss will wipe out your entire account in copy   trading you're not just following the buy and  sell orders of your master you're also copying   his lot and trade size hence this is why it's  important to follow masters with similar Equity  

[02:47] as yours another mistake I see most people make  is they just select masters with good risk score   and not look at the starts that's similar to  buying a football Striker and not knowing how   many goals the striker has scored in the past  now to to check the starts of a Master Trader  

[03:01] click on Master Trader look at the account  balance floating profits leverage and for the   risk management side the maximum unrealized  loss now the maximum unrealized loss is the   largest unrealized loss the trader has held at a  point for example this Trader's unrealized loss  

[03:18] is way too high for me so I wouldn't recommend  you pick this Trader another thing you should   take note of is the Master's minimum investment  if you don't have the minimum amount to invest   with that Master you won't be able to to copy the  trades of that Master now if you trade the market  

[03:33] or even trade a demo account you already know  this trading can be volatile and support funds   for volatility is important say for example if  a piece of news get released and goes against   the Master Trader the market might go against  your position for some minute and return back  

[03:48] to your favor so it's important to have support  funds to help with volatility usually 40% of the   required investment is enough and finally some  master Traders have a 7-Day trial period where   you can copy that trades and you won't get  to pay any Commission on the profits made the  

[04:03] trick to making money by copy trading is finding  good Masters I recommend you pick two or three   Master Traders just in case one doesn't meet your  expectation also professionals lose money as well   which is why picking the right Master Trader  can make or break your investment this is why  

[04:19] taking your time to study the Master Trader  is essential you can make money through this   hands-free trading method but you need to find  a good Master Trader that's the main thing after   tested out a number of Master Traders and some  of them will make you money while some of them  

[04:33] will lose your money so finding the right one is  very important so that's my take on OCTA FX copy   trading if you want to try it out you can check  the link in the description of this video thank   you for watching and I'm going to see you guys  with more videos like this Valor reviews signing

[04:49] [Music] out