Wednesday, June 29, 2022

Learn more about active trading

Must read

Shreya Christina
Shreya has been with for 3 years, writing copy for client websites, blog posts, EDMs and other mediums to engage readers and encourage action. By collaborating with clients, our SEO manager and the wider team, Shreya seeks to understand an audience before creating memorable, persuasive copy.

Looking at how smartly active traders make money and how long passive traders wait for profits, a novice trader may want to change their strategy drastically. But if you started active trading without the necessary preparation, you can lose a lot of money. The reason is that active or aggressive trading requires a deeper financial knowledge. You can easily earn several times more after receiving the necessary base. The reason for this is an active trader’s ability to take profits much more often.

What are the characteristics of active traders?

Profits in the foreign exchange trading market are made by buying/selling currencies at the time of a trend change and by selling/buying when the trend reverses. Active traders understand that the more such peaks they catch, the higher their earnings will be. Therefore they are:

  • read analytic reports and forecasts, learn different methods to make forecast
  • study the experience of other traders and know the technical analysis perfectly
  • learn the features of the application of various indicators
  • experiment with different strategies on MT4 for PC
  • often take risks in the hope of making a profit
  • view currency fluctuations 24/7
  • open multiple deals during the day

Consider a passive trader for contrast

  • A passive trader has little interest in analytics. They usually understand where they can make money, but are not interested in the details. In addition, they do not read regular analytic reports.
  • They don’t open more than one trade per day. In more intensive trade, they have to pay more attention to this than they are willing to give.
  • Most of the time, passive traders rely on brokers.

Why active traders earn more

The reasons for the higher earnings of active traders are easy to explain:

  • During the day, the exchange rate fluctuates and if you keep a close eye on it, profits can be withdrawn more often.
  • If a trader does not pay attention to these price swings during the day, he simply has less chance of making a profit.
  • When a trader uses short-term trades with a time frame of no more than an hour, they can take risks with leverage of 1:100 meaning profits will scale incredibly. A passive trader who is not on such a tight time frame will not take risks with such high leverage as it can lead to significant losses.

How to move from passive to active trading?

Looking at the success of active traders, you may be wondering the best way to make this transition between the two fundamental strategies. Is it really necessary to go to an educational institution and study the intricacies of financial analysis for several years before taking the risk of mastering active strategies?

Modern popular trading platforms such as MT4 and MT5 offer a unique opportunity with the title CopyTrade† It can become your reliable bridge to the world of active trading.

What is the use of Copy Trading?

Active traders are so active that they like to share their knowledge with others. And even from this they make money because by joining the copy trading program and getting new traders to follow their strategies, professionals get their commission for this.

  • What an experienced trader does: They go about their daily routine. But this ordinary occupation is fascinating to them and charged with passion and excitement. At the same time, when trading Forex, they activate a feature that allows others to copy strategies. They are not concerned with anything extra.
  • What a novice trader does: they do nothing special at first. They select from the suggested traders the one whose strategy they want to copy in whole or in part and turn on the copy function. The MT4 trading platform does this automatically.

The difference between a passive and active trader in the example of copy trading

  • A passive trader stops there. They automatically copy the strategy of an experienced trader and get their profits. If the profits seem insignificant to them, they will change the trader whose strategy they are following.
  • An active trader will study in detail the strategies he is copying. They will see when the strategy works in plus and when it works in minus. They will start asking questions of the trader whose strategies they are copying. And as a result, in imitation of the master, they will very quickly become masters themselves. When they feel confident enough, they start taking risks and acting on their own. In this way, the beginner becomes an active trader.

The life of active traders is interesting, reckless and exciting. Their emotions throughout the day can often change depending on whether they are making a profit or making mistakes and suffering losses. And this saturates their lives with a lot of energy, which they also actively spend on other things with pleasure and continue to actively trade.

More articles


Please enter your comment!
Please enter your name here

Latest article