The market conditions change constantly. Whether you are a lead trader or a copier, you should trade with caution, set leverage reasonably, and control risks.
Why should a lead trader control risks?
Lead traders attract copiers because of their outstanding trading ability, which shows copiers' trust in them. The greater the ability, the greater the responsibility. When lead trading, lead traders not only need to consider their own interests, but also the interests of their copiers. An excellent lead trader is not only good at trading operations, but also at his ability to help copiers maximize their benefits and avoid risks from market fluctuations to the greatest extent.
How should a lead trader control risks?
As a lead trader, you must reasonably observe the market conditions, fully consider the financial security of yourself and your copiers, set leverage reasonably, control trading risks, pay more attention to long-term and stable profits, and ensure the common profits of both yourself and your copiers. Do not engage in speculative trading and put yourself and your copiers at too high a risk.
Why should a copier control risks?
Since its launch, Gate.io Copy Trading has attracted many high-quality lead traders to settle in, which has helped many copiers realize "automatic" profit. However, the cryptocurrency market is full of ups and downs, and no one in the world can guarantee that it will be profitable forever. Therefore, copiers must learn to identify the trading risks of their lead traders, reasonably control their own copying risks, ensure the safety of the principal, and pursue stable and long-term profits.
How should a copier control risk?
<1> Withdraw the return and lock in profits
If copiers don't have much confidence in the future market conditions or think that the current copying risk is too high, they can choose to withdraw all the current returns and lock the profits obtained from copying to prevent losses caused by excessive risks in the future.
Copiers can enter "My Copy Trading" - "Copying Mode", and click "Trading Metrics" to check your trades. Then click the homepage of the lead trader with whom you profit and click "adjust copying amount” to withdraw the return amount.
Details:
https://www.gate.io/help/quants/copy-trading/29459
<2> Choose a suitable copying mode and set a reasonable copying leverage
There are currently two copy modes in copy trading: Customized Mode and Auto-Copy Mode.
When the user chooses Auto-Copy Mode, copiers' risks and returns are completely determined by the lead trader. Copiers can have the same leverage as the lead trader whose maximum leverage can be set to 100, which breaks through the leverage limit in the Customized Mode and maximizes the returns but also maximizes liquidation risks. The security of the principal can't be guaranteed.
When choosing "Customized Mode", the risks and benefits can be adjusted by copiers themselves according to their own actual situation. Under the changing market, copiers can set reasonable leverage to avoid the risk of liquidation to a certain extent and guarantee the security of the principal.
Learn more:
https://www.gate.io/blog_detail/1857
A friendly reminder from Gate.io Copy Trading: If copiers cannot accurately assess the risk tolerance or have no rich experience in market conditions and trading, they can consider choosing the "Customized Mode" based on their actual situation, set low leverage, and choose a stable lead trader to copy, which can bring them a small profit from each trade, and achieve long-term stable profits.
Gate.io Copy Trading has always been user-centered and is concerned about the interests of users. If you are a lead trader or a copier, you must avoid following the trend and speculation, and face every choice and operation carefully. As a rule, make controlling risks your priority.
If you have any questions about copy trading products, please feel free to contact us through Telegram or customer service:
Copy Trading Telegram Group:
https://t.me/Gateio_Copy_Trading
Copy Trading Customer service:
https://t.me/Kris88601
Gate.io Copy Trading
January 29, 2023