Experiences of Failure When Copy Trading on Binance – Valuable Lessons
Copy Trading may seem like a perfect solution for newcomers to the crypto market. However, the reality is not always rosy. Below are the real experiences of failure that I went through when participating in Copy Trading on Binance.
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🚨Chasing High-Profit Traders – The Sweet Trap
The first time I participated in Copy Trading, I immediately chose traders with the highest profit rates on the leaderboard. My mindset at that time was very simple: “The higher the profit, the better.”
Results:
• Initially, the profits did indeed increase. But just after a few weeks, the trader I was copying fell into a continuous losing streak.
• This trader executed many trades with an extremely high risk/reward ratio. When the market reversed, he still tried to hold onto positions and increase volume, resulting in my account being blown away by nearly 50% of the capital.
Lessons Learned:
• High profits do not mean low risk.
• It is necessary to carefully consider how that trader manages capital and the risk/reward ratio, rather than just looking at the profit percentage.
