Copy Trading is a form of investment. Like any investment, this one also involves risk. Anyone who writes or claims otherwise is either lying or acting in bad faith.
Here are some of the risks you'll be exposed to:
Lack of knowledge about the operation of the platform or copier
We will quote a story here that really happened to an investor. Well, instead of taking the time to learn how the copier works, the investor started the transaction right away. The problem was that this person was not experienced enough to set the program to 10 micro lots. He started his social trading by investing 10 lots. When he realized it, it was too late.
Not being aware of the copied trader's strategy
Certainly, you have seen several investors generating cosmic results more than once. A perfect growth line, a great profit of 100%, systematic payouts almost every day.
Let me address this right away - such strategies do not exist. It is a ready method for failure.
In the short term, we can actually see investors delivering these results. However, there is no such person in the world who is able to generate such profits in the medium or long term. Sooner or later you will lose all your money investing with the help of such a man.
No knowledge of how much to invest in a given trader
From the very beginning, you need to know how much money you want to spend on one Trader. You need to make a decision based on optimal risk, minimizing losses and maximizing profits. Otherwise, by "entrusting" such a person with too much money, you may lose it.
Not controlling your wallet
Copy Trading is not about setting up your system once and forgetting it. Of course, this is not a full-time job, but you should follow investors' actions and react appropriately when any threats arise.