How Is Copy Trading Different from Manual Trading?


 

Trading options come in many shapes and forms, including how to buy and sell stocks, forex, or other financial assets. Among the more widely used methods are copy trading and manual trading. While both are derived from the primary objective of generating profits, they differ immensely in terms of strategy, involvement, and risk management. In this blog post, let's find out how copy trading differs from manual trading and why one might be better for you than the other.

What Is Copy Trading?
Copy trading is a relatively newer approach that enables traders to automatically copy the trades of experienced professionals. You connect your account to a trader whose strategy you want to replicate, and the software does the rest. Combiz Services Pvt Ltd is one such provider that offers copy trading software that allows users to follow successful traders in real-time.

Copy trading is said to be one of the most important reasons and advantages it gives, as it saves time and effort. You no longer have to analyze the markets and decide how to place trades; you let the pros do it. This method is perfect for beginners or people who don't have the time to trade manually but still want to earn from financial markets.

What Is Manual Trading?
Trading involves making all the trading decisions manually. That is, you are always on your own for the analysis of the market. You, as a manual trader, pick up stocks or currencies and execute the orders. It requires more time, effort, and expertise because one must keep updated with market trends, news, and technical analysis.

With manual trading, you are in total control of your trades, but so are you also responsible for your decisions. Successful manual trading involves continuous learning and practice so as to develop a sound strategy for trading.

Key Differences Between Copy Trading and Manual Trading
1. Level of Involvement
In copy trading, you barely have anything to do. After selecting a trader to copy, the system automatically mirrors his trades. You do not have to be actively managing your trades or wasting time analyzing the market.

Manual trading requires you to be very active and analytical in understanding the market, have good execution skills, and be active in managing risk. It is a "do it yourself" approach that requires constant attention to market conditions.

2. Skill and Experience
Copy trading allows even novice traders to benefit from the expertise of experienced professionals. If you’re new to trading or don’t have the time to learn the ins and outs of the markets, copy trading could be a great solution.

Manual trading requires a good amount of skill and experience. Technical analysis, market trends, and risk management techniques have to be understood before making a decision in manual trading. Otherwise, it will be risky if a person doesn't have suitable knowledge.

3. Risk Management
The risks associated with these two types of trading are the same, but you take the risks differently.

Risks are mitigated to some extent in the copy trading mode since you're copying a more experienced trader. However, if the copy trader commits mistakes, then it is bound to reflect negative losses. It is, therefore, necessary to identify the right persons whose trade you copy. Combiz Services Pvt Ltd provides features that help you make an assessment of the risk levels involved and trading history among the traders whom you would be copying.

In manual trading, you are in control and responsible for risk management. You must decide on entry and exit points and set stop-loss orders to contain your potential losses. Without some risk management strategy, manual trading is much more volatile and risk-prone.

4. Profit Potential
Both methods have good profit potential, but this will depend on your knowledge and approach.

Copy trading is based on the expertise of the trader; hence, your profits will rely entirely upon their skills. Although it is possible to earn good returns, the risk for a beginner is low because you are not required to be hands-on.

The potential for higher profits could be there in manual trading if you are experienced enough to make informed decisions. Since you are in control of the trades, there is scope for proper planning. But more control means more responsibility and loss.

5. Time Commitment
Copy trading is more time-effective as you open your account, choose whom to copy, and then just sit back and let the platform do the rest; this makes it ideal for those who either have less time or want to focus on other aspects of life or business.

On the other hand, manual trading takes up considerable time. You must stay updated on the markets, monitor your trades, and adjust strategies as needed. It can be pretty time-consuming, especially if you are trading full-time.

Which Is Better for You: Copy Trading or Manual Trading?
Choosing between copy trading and manual trading depends on your goals, level of experience, and available time. If you’re a beginner or someone who doesn’t have the time to actively monitor the markets, copy trading is a great way to earn from trading without the steep learning curve.

If you are an experienced trader and enjoy making your own decisions or can dedicate time to the market research process, manual trading might work best for you.

For people who are still unsure, Combiz Services Pvt Ltd offers the option of both copy trading solutions and support for manual traders. Thus, every person will be able to choose what suits their preferences best.

Conclusion
Both copy trading and manual trading have their advantages and drawbacks. Copy trading is a more passive, beginner-friendly way to engage in trading, while manual trading offers greater control and potential for higher profits, but it requires more time and expertise.

In whatever method you prefer, there is a proper understanding of the risk involved, and of course, you'd want to be on a genuine platform. Combiz Services Pvt Ltd ensures full solutions in the two, with regard to copy trading and manual trading, in order to give you the best support in the financial markets.

ALSO CHECK IT THIS LINK 

 https://copytrading.combiz.org/blogs/Copy-Trading-vs-Manual-Trading-Which-is-Better-for-Newbie-Traders

https://copytrading.combiz.org/blogs/An-In-depth-Comparison-of-Automated-Copy-Trading-and-Manual-Copy-Trading


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