Does social trading or magical EA’s mean a real success?

If you are present on Forex Market for some time you certainly know what options you have for trading.

• Trade by yourself
• Follow email or web-based signals which tell you whether and when to buy/sell
• Buy an EA and install and set it up by yourself
• Sign “Power of Attorney” to money manager
• Follow experienced and verified traders

What will be your choice in order to profit on the biggest world capital market with the daily turnover over $4 billion?

Each of the ways mentioned above has its own specifics and risks.

And one rule says:

“Only if you know the risk you can start taking care of the profits”.

There are 4 main factors affecting the outcome of your trading (profit or loss respectively).

1. Enters and Exits

What everybody gives you…

If you are a self-trader, you are responsible for every enter and exit point by yourselves. Most of the traders use technical analysis or price action to predict market movement.

But only with enough experience you can find the right time to enter and exit the trade.

You can also follow other (anonymous) traders (e.g. in various social trading platforms) or run a basic EA, which essentially gives you only a “signal” when to open or when to close the trades.

Based on our experience these results are unsatisfying in most of the cases in long-term.

So, you can mirror trades, follow well performing traders or believe to the EA to get the right enters and exits. However enters and exits are usually not the most important part of successful trading.

2. Money Management and Risk Management

Heart of each successful strategy that makes difference between long-term trading in comparison to social trading or EA.

Every experienced trader will tell you that money management and most importantly risk management is the main pillar of trading success.

It is the main skill which separates professionals from amateurs and long-term winners from lucky players.

The point is – many EAs, mirroring systems and social trading platforms do not support (and do not provide you with at all) the proper position sizing, margin control, stop loss order setups, loss control and other necessary parts of money management and risk management.

And that makes your trading similar to real gambling even though the original strategy or signal provider may be doing very well.

3. Technology and Trading Conditions

Are you really sure that you have the same conditions as master trader does?

To have the right conditions for a strategy is another important value for an experienced trader. For the long-term and swing traders, trading conditions do not have that significant impact.

But what about scalpers and their strategies? For them it is dangerous to trade with unfavorable trading conditions.

In simple words – by using most of the types of signal providing methods your results will be always different from the results of trader’s master account.

It is the hidden part which the beginner traders are mostly not aware of.

4. Loss Protection

Is it always necessary to risk 100% of your account?

Forex market is in 100% risky market. On the other hand, there are 100%, 500%, 1000% and higher profits possible in short time period which makes this market attractive.

And almost any signal providers, EA developers or social trading platforms do not protect client from unexpected losses.

Therefore it is great that every forex trader has a good option to choose the most suitable trading method for him.

But sometimes people forget the fact that every system in every industry is built from many parts and if you miss just one part already your whole system may fall down.

We are well aware of all of these 4 key principles that make difference between profiting and losing.

ZuluTrade platform is a great investment tool for everybody who wants to benefit from opportunitis on forex market but who has lack of necessary knowledge, skills or time to trade by himself.

• The platform is composed from trading strategies created by professionals that you can connect to. And the difference? They have a strict due to diligence process for choosing the best traders, for their verification and for their permanent monitoring.
• They give special trading conditions to every strategy which is listed.
• By transferring trades using the high-speed server-to-server copying system and by allocating the proper trade volumes, they ensure the right enters, exits, money management and risk management for the investor.