In Copy Trading, a signal provider is often presented as an asset. Therefore, we can find it most often in the "Investment portfolio" or similar tab. Each investor we want to copy has its own characteristics and financial results. However, there are common features on the basis of which we can and categorize. The first one is the technique that the investor uses when making decisions.
► An investor using fundamental analysis
► An investor using stock market indicators
► An investor using only the price of the asset
In most cases, every investor specializes in one of these techniques, but understands the other two perfectly well.
They can also be grouped in terms of the time horizon of their investments:
► Long-term trader (months or years)
► Medium-term trader (weeks)
► Daily trading (hours or days)
► Scalping (seconds/minutes)
When making a decision about choosing a Trader to copy, you should also take into account other factors. Among them we distinguish such as:
► How long has a Trader (signal provider) been playing the stock market?
► How many assets does he use?
► How many open positions does it have at any one time?
► How many transactions are performed on average (daily, weekly, monthly)?
► How long does he hold an open position?
► What are his profit statistics?
► What is the risk index?