What Is Mirror Trading And Why It's An Amazing Approach?

Mirror Forex trading is an approach where traders mirror, or copy the strategies followed by other, more experienced traders. In doing so, you're essentially trying to replicate the trade a more knowledgeable trader is pulling off, and aiming at making good profits. 

There are several occasions where traders don't have the time necessary to research or sit and make long trades. Similarly, you will find quite a few Forex traders participating part-time, either due to a job or studies. For such traders, mirror trading can be a great method.

forex trading strategies

Here are 4 amazing advantages of employing the mirror trading approach: 

1) Remove The Unnecessary Emotions: 

Emotional investment is a very risky aspect of Forex Trading. Getting too emotional can be detrimental, and not having emotions at all is unhealthy. Many novice traders get very emotional over their trades, even the smallest loss leaves them tensed! When emotions step in, confidence becomes overconfidence and fear becomes greed. Out of the fear of losing money, traders end up overtrading to make up for all the lost capital - but ultimately only see more losses.  

2) Measure The Performance: 

Mirror Forex Trading is often compared with algorithmic trading in that both methods leave you out of the trade. With algorithmic trading, it is very difficult to find out if the Expert Advisor employed is accurate and will bring in good results. When you employ mirror trading however, the performance efficiency can be measured with ease. The strategy you're mirroring can be monitored to ensure that it is bringing in profitable results for the original trader and will do the same for you.    

3) Replicate Profits: 

The idea behind mirror trading is to copy a profitable trader's approach and make the same profits he/she is making. While it isn't always possible to see wins in the trades you mirror, this strategy has a huge success rate and with some good research, you can get yourself hefty profits. 

4) Retain Full Control: 

At the end of the day, no one likes giving Forex brokers control. When it's your money on the line, it is you who should helm the boat. And with mirror trading as your main approach, you will be retaining full control. 

Always play it safe when mirror Forex Trading Strategies! There is no guarantee that one trader's profitable approach will reflect exactly when you implement the same. Keep the necessary fail-safe means in place and only when secure should you trade.

Sign up with one of the leading Forex brokers, WesternFX, and take to the top right away! Reach out to us today, avail our world-class trading approach and find big wins come your way.

How Does Foreign Exchange Differ From Stock Exchange?

Two incredibly famous investment domains, Forex trading and stock exchange are very profitable trading fields today. With investors crowding each domain in thousands, there is often a question among the beginners as to which option is better between stock and Forex trading. 

When it comes to profits, people will mostly prefer Forex trading. However, several believe stock exchange to be the more stable investment domain, which is both profitable and filled with opportunities.

Forex Trading Strategies

Here are the primary differences between Forex and stock trading: 

1) Different Assets Are Traded: 

A very evident difference between Forex and stocks is the asset being traded. In Forex trading, you exchange currency pairs and profit from the difference in their value. And in stock exchange, you buy stocks and sell them later when their value has increased. 

2) Liquidity: 

Between the stock and Forex markets, Forex has greater liquidity. Since it is open 24 hours a day, you will always find counterparty for your exchange! The same can't be said for stock trading. In the stock trading market, finding buyers or sellers take a longer duration. 

3) Technical Factors Affecting Market Value: 

While stock trading, the technical analysis done will consist of researching a company's history, its viability in the stock market, finding profitable conditions for trading etc. But in the Forex Trading In Pakistan markets, technical analysis comprises of studying a currency's complete historic price movement because the currency value is directly linked with the country's economy!  

4) Trading Hours: 

The foreign exchange markets are open 24 hours a day for 5 days a week, giving traders plenty of time to place their deals. This also allows for several provisions like overnight trading, and even helps increase the market's liquidity by a huge percentage. As a stock trader however, you will be limited by time heavily. 

5) Leveraging Facilities: 

Leverage is a provision Forex traders enjoy immensely. With a leveraged sum borrowed from the broker, you will be able to hold positions of higher value. In the stock markets, there's no leverage system. You trade consistently with the capital you have, without any further augmentations. 

Be it stock trading or Forex trading, with the right broker by your side, success will be yours without doubt! Reach out to WesternFX today; we will provide you with everything from the best stock trading platforms to proven Forex Trading Strategies. Our experts have years of experience, and will guide you through your many trades, ensuring profits are bagged consistently. Call us today to get started!