In the exciting but risky world of Copy Trading, many wonder: how to know if the lead trader I am following is really profitable?
Here I share a guide based on real experience as an analyst and trader on Binance:
1. Consistent profitability, not occasional
A profitable trader is not measured by a winning week, but by their consistency. Ideally, they should have shown positive results for at least 6 consecutive months, maintaining a balanced record, without extreme drops or frequent liquidations.
2. Overcoming cycles
A true professional trader has demonstrated ability in both market scenarios: bullish and bearish. If they are only profitable when the market rises, it is a sign of weakness in their strategy.
3. Start with the minimum
On Binance, you can copy a trader for as little as $3 USDT. It’s an excellent way to evaluate their performance without risking large amounts. If after several weeks you gain confidence, you can gradually increase your capital.
4. Withdraw profits
When a lead trader generates income for you, the healthiest thing to do is to regularly withdraw part of your profits to secure benefits and reduce risks.
5. Diversify your portfolio
Do not put all your capital into a single trader. Follow several with different styles (scalping, swing, trend), and distribute your capital based on their performance and risk.
6. Use simulated Copy Trading
Binance offers a powerful Simulated Copy Trading tool. With $10,000 virtual, you can practice and understand the behavior of traders without risking your real money. This is ideal if you are just starting or do not yet trust any trader.
NómadaCripto recommends:
Don't just be swayed by green numbers. Analyze, ask, research, and manage with strategy.
Follow me on Binance Square for more tips like this, leave your questions in the comments, share this post, and turn on notifications, because we will soon launch NómadaCripto's Copy Trading with management focused on real results and constant education.
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https://www.binance.com/join?ref=K3QGI8T1
Invest wisely, practice with strategy, and grow with experience!
