As I ventured into the world of copy trading, I was filled with excitement and anticipation. I had seen lead traders boasting impressive ROI figures – 100%, 200%, and even higher! Without doing my due diligence, I blindly followed them, thinking that if they could achieve such remarkable profits, I could too.

A Painful Reality Check

My enthusiasm quickly turned to regret as I suffered a devastating loss. My $USTC

100 investment dwindled to almost nothing, leaving me stunned and disillusioned. It was then that I realized my mistakes and the importance of a more informed approach.

The Mistakes That Cost Me Dearly

Mistake #1: Only Looking at ROI

I was lured in by the promise of high returns, but I neglected to consider the potential risks. A trader's ROI doesn't tell the whole story; it's essential to also examine their Maximum Drawdown (MDD) – the maximum loss they've incurred.

Mistake #2: Ignoring MDD

I failed to check the MDD of the trader I followed, and it proved to be a costly oversight. Their MDD was substantial, indicating significant volatility. When their trade went sour, I was left with a hefty loss.

Mistake #3: Not Checking Lock-up Period

Another critical mistake was not noticing the 30-day lock-up period. This meant that I was stuck with the trader, unable to unfollow them even when I wanted to.

Mistake #4: Copying High-Leverage Portfolio

I copied a portfolio with high leverage without setting a stop-loss, a recipe for disaster. When the trade went awry, I suffered a massive loss, and my account was liquidated.

Valuable Lessons Learned

My mistakes were costly, but they taught me invaluable lessons:

1. Always check MDD: Choose traders with an MDD under 10%.

2. Set stop-loss and take-profit: Avoid getting caught off guard.

3. Have a clear mindset: Know when to exit a trade.

4. Avoid greed: Don't get caught up in the promise of high returns.

5. Use lower leverage: 2x to 3x is safer.

6. Check performance over 180 days: Don't rely on short-term results.

7. Pick disciplined traders: Avoid wild risk-takers.

Final Words

I share my story to prevent others from repeating my mistakes. Copy trading may seem effortless, but one misstep can be disastrous. Stay informed, trade wisely, and always do your research.

Share Your Thoughts

Do you follow traders based solely on ROI, or do you consider MDD as well? Let's discuss in the comments!

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