Investing wisely – controlling risks (part 2)

Today we continue telling you about how and with what kind of tools you can successfully manage risks of losing your funds in CopyFX system. The main thing about it is no to hurry. Here are several more pieces of advice that may be helpful:

Choose the Trader with the same account type

For beginner Investors it is more profitable and safer to copy transactions of the Trader, whose account type is the same as the Investor’s one. In the Rating table in your Live Account, these Traders are marked with "+".

Those Investors, who register in CopyFX system for the first time, can go a simpler way. First of all, choose the Trader you’re interested in and click on his unique name to enter his profile. By clicking on "Invest" in the Trader’s profile, you will be redirected to the registration form with already specified type of account, which is the same as yours. All you have to do is to fill in the required fields!

Manage the amount of copied transactions when subscribing to the Trader

You have an opportunity to subscribe your investor account to several trader accounts at the same time and copy transactions from them. Subscribing to several Traders will allow you to form a more flexible portfolio on your account, because, for example, using three trading strategies from different Traders will increase your chances of more stable results. In other words, the possibility that the results of all three Traders will be negative at the same time is lower, hence your chances to earn more and not to lose your funds are higher.

However, at the same time you should remember that risks must, and most importantly, can be controlled. This is why CopyFX system features the option called "Trades copy mode", which we recommend you to use in your trading activity. The option can be found in your Live Account when subscribing to the Trader’s offer.

You can choose from 4 different modes: test, flexible, standard, and risky.

The most effective mode for beginner Investors is flexible, which allows them to copy some percentage of the total volume of transactions. The fewer transactions you copy, the fewer your risks to lose funds are. However, in this case your profit also decreases. Thus, the higher the Trader’s level of risk, the fewer transactions you should copy. According to this, we can recommend you the following formulae:

Distribute your funds

Let’s suppose that you’re interested in several Traders with different account types. But, due to some reasons, you’re not willing to subscribe to all of them using a single account. For such cases, CopyFX system allows you to open up to 100 investor accounts of different types and with different options.

Use this feature if you want to distribute your funds between several Traders. In this case, we recommend you to deposit your account (when opening it) with the sum, which matches the sum on the Trader’s account.

Start operating in CopyFX system – cent accounts

Trading on cent accounts is less risky because the amount of your investments is much lower in comparison to standard accounts. With cent accounts, you can find out how the system works, learn more about the opportunities you have, and test your trading strategy. And all of these activities will be in a real trading mode!

If you’re still not self-confident enough or would like to change your plan of activity in the system, don’t be afraid to open an Investor demo account. It will help you to learn and understand how the system works in details without your own investments.

Surely, this is not the complete list of the ways how you can manage Investor’s risks in CopyFX system. But we hope that basic knowledge described here will help you to build a successful trading strategy in the future. Remember, that the haste in earning money can lead to the completely reverse effect.

We wish you successful trading with CopyFX system!