Trading is a whole new world that looks big and intimidating! In recent years, online trading has become a popular strategy for people in the stock markets. These days you can trade different commodities, currencies, and cryptocurrencies in many different ways. That’s why sometimes it’s challenging to know where to start.  

There are many trading styles and types, and some strategies are more profitable than others. However, everyone can’t have enough time or training to find or develop their strategy. You have to know what trading is, the different types of trading available in the market, and which method works best for you. 

Have you ever heard about mirror trading?

Mirror trading is a new form of automated trading, just like copy trading and social trading. Over the past couple of years, especially after the pandemic, mirror trading has become a popular strategy for forex and stock traders. 

As per the Citadel Securities data, “the account of the retail traders goes roughly up from 10% to 20% of the daily market volume in 2019.”

Are you interested to know more about mirror trading? Keep reading!  

In this post, we’ve explained what mirror trading is, how it works, and, most importantly, the pros and cons of mirror trading. Read the Mirror trading tutorial if you want to learn more about it in detail.  

Let’s get started. 

What is Mirror Trading?

Mirror trading, also known as mirror effect trading, is a method where the traders can automatically copy or mimic the positions and actions of other traders in real-time. 

This mirroring trading strategy is popular among new people in online forex markets. This way, beginners can easily learn from the experience and successful forex investors.   

So what’s the benefit of mirroring the actions of other traders? 

This type of trading allows new traders to learn the proven strategies and techniques developed by experienced investors. You can say mirror trading is a branch of social trading!  

So, instead of competing against each other, people can see who is on the top and link their accounts to these experienced traders’ accounts to know trading strategies. This way, they can also reach the top. So, if you’re one of those people who don’t have the time or patience to do all that work, mirror trading is the best option for you.

But how does mirror trading work? Let’s know. 

How does Mirror Trading work?

So, mirror trading works differently for different people, and it also highly depends on the broker or software you sign up to. These brokers or masters use a brokerage’s trading platform to get all the details of various trading strategies of the best-performing traders. 

The whole process seems confusing and complicated, but mirror trading is pretty simple. Here is Here’s the mirror trading tutorial so that you can know how the entire process goes:   

• The first step is to find the best trading platforms according to your requirements.
• Open an account and deposit a small amount of capital. (you can go as low as $250.)
• After your account gets activated, you can search and browse the various trading strategies. 
• After you decide which strategy you want to mirror, you can finally link your account to that specific trading algorithm.   

What are the Pros and Cons of Mirror Trading? 

Here are some advantages and disadvantages of mirror trading: 

Pros

• Mirror trading is automatic, and it relies only on the detail analyzing all the data points used to create the master trade. That’s why it eliminates the emotions that can affect the final decision. 
• Anything can change every other minute in the stock market. As trading is sensitive, it requires deep analysis and time dedication to give a successful result. Mirror trading removes all these factors, allowing traders to focus on other details and commitments. 

Cons

• One of the major drawbacks of mirror trading is that losses also get mirrored here. Mirror trading software automatically places the master trades on your account, which can be risky. And many times, the bad trades also get reflected, which leads to losses. 

The Bottom Line

So this is all about mirror trading. Getting started with mirror trading isn’t as difficult as it seems, but you’ve to be aware of all the risks and other possibilities. Just follow the mirror trading tutorial that we’ve mentioned above.  

Keep in mind all the advantages and disadvantages and decide for yourself whether mirror trading is the best strategy for you or not!