The old saying ‘if someone told you to jump off a bridge would you do it?’ is a very apt concept for foreign exchange Melbourne in recent years. You can think of this statement as copy trading. If someone is tweeting about a trade they just placed would you go into your account and follow suit? The hope of the person tweeting is that you would. If you get in on the same trade along with a million other individuals chances are the planned profit is going to happen. The person is banking on being copied so that the currency rate changes in pips for better profit. Yet, is this really the type of market manipulation you want to condone? What if there are 2 million people on the other side of that trade stating the opposite currency is the one with the profit in it? If you copy the wrong trader you lose and could lose big.
Copy Trading in Foreign Exchange Melbourne
Copy trading seems like a great idea when you first read about it. If you get in on trades you know others are going to be doing then you can “self-fulfil” the trade; at least, that is what you want to believe. The thing is governments cannot control foreign exchange Melbourne or the entire market for that matter. Governments tried and they have left it to individual central banks. There are too many variables to intervene or control the market.
Someone who tweets about a position they just opened might have enough power for followers to make the trade profitable. The other half is that they do not have a lot and you just bought into someone’s hope for an extreme loss. Foreign exchange Melbourne needs to be about the true market reactions and not someone else.
Yes, you can try to find that one expert offering trade advice that will give you all that you want. What happens if that person actually wanted to clean up on a different trade and used the tweets to make it happen? Someone might put a tweet online, get a lot of followers, and be hedging to the point that they have plenty of people lose money while they gain it. There is a better way to trade than copy trading.
A Better Trading Method for Foreign Exchange Melbourne
Trading on your own merit is the better way to trade. To a certain degree those who tweet about the trades you should make can impact how the market reacts. If there are enough followers then yes the market could move in favour of that grouping and totally trip up the trade you had confidence in. It is not that you should discount copy trading protocols, but that you should not base your entire trade on it. Make certain that there is not a “viral” tweet going around about a specific currency before you enter foreign exchange Melbourne trades. Check that a random event, government interference, and other situations are not going to play into how the market eventually reacts. Due diligence is a better way to trade.