Apply This Trick to Stay Away From Copying Losses!
Many copiers will encounter the following problem: They have achieved good copying profits after following a lead trader, however, due to the market decline, they lost the previous copying profits and even the principal. Simply put, copiers have obtained the copying returns but failed to keep it. These things happen because you’ve overlooked one major function: “Transfer out Copy Profit”.
What Is “Transferring out Copying Profit”?
“Transferring out Copying Profit” is a newly added function of Gate.io Copy Trading, which allows copiers to transfer out the copy return amount obtained at any time, so as to fully protect the interests of copiers and help them reduce copying risks, increase and lock in income.
How do you do a transfer? Copiers can enter “My Copy Trading” - “Copying Mode”, and click “My Performance” to check their trades. Then click the homepage of the lead trader you are following and click “Adjust the Amount” to transfer out the return amount.
If copiers think that the future trading risk is too high and want to lock in profits, they can transfer out returns at any time after they realize the profit, so as to protect their own interests to the greatest extent and reduce losses. However, copiers also need to be cautious when transferring their returns. Transferring too much profit may lead to a reduction in trading principal, which may weaken their ability to resist risks, and increase the possibility of liquidation.
Why Should You Transfer Out Profits?
The current market is volatile and the bear market is rampant. It may be that the income that rose in the last second will drop sharply in the next second. “Fickle and treacherous” are the best adjectives to describe the current market. The previous investment mentality to ask for sharp rises and falls may need to be adjusted. If you blindly indulge in putting in more, you will fall into a disadvantageous situation. Once the rising yield curve reaches an inflection point, you will lose profits and even lose your principal. It is really not worth the hassle.
Case Study
Assume that copier A follows lead trader B in trading. If the market is good, trader B invests 1000U and accurately captures the mark to gain a single profit of 100U. While copier A has a copy amount of 500U, he can obtain 46U of copying profit for this order (suppose the profit sharing ratio is 8%). If he does not withdraw the profit in time, his copying amount will be 546U. Then, if the market falls by 9%, he will lose 49.14U, which means he will lose all the previous profits and eat up an additional part of his principal. If he withdraws the profit in time and adjusts the copying amount to the previous 500U, then when the market drops by 9%, he will lose 45U. Since he has already pocketed the 46U profit before, he has not actually suffered a loss. The table below may explain the process more clearly.
Of course, we all hope the market rises, which is naturally the most ideal state. In this case, whether to withdraw profits or not has little effect. But investors need to be prepared for danger in times of peace. After all, in the present market, a rise is a surprise, and a fall is the norm. Therefore, it is wise to trade steadily, invest prudently, pocket profits, and stop losses in time.
Pocket Your Profits to Maximize Them
Crypto investment requires skills. It’s safer to stop losses and pocket profits in time. Especially in the current sluggish market environment, it is even more important to pay close attention to fund management, and to adjust your copying amount in a timely manner. When the market is unfavorable, withdraw profits in time, decisively take profit and stop losses, avoid risks and look for other trading opportunities. When the market is favorable, the withdrawn profits will be invested as the principal to earn more profits and realize “Compound Profits”!
