NAGA COPY TRADING EXPERIENCE: EXPLAINED FOR BEGINNERS

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NAGA COPY TRADING EXPERIENCE: EXPLAINED FOR BEGINNERS

 

Copy trading is one of the fast-growing trends in the financial scene. And NAGA is in turn the fastest growing supplier in Europe. That’s why I checked the NAGA copy trading experience on crypto and saw what it’s all about.

Table of Content

What is social trading?

Social Trading Platforms – What strategies are there?

What is copy trading?

For whom is social trading suitable?

What are the advantages and disadvantages of social trading?

What are the copy trading experiences or risks of social trading platforms?

What is NAGA Copy Trading?

How does NAGA Copy Trading work?

What is NAGA Autocopy?

Conclusion on NAGA Copy Trading

What is social trading?

Social trading is about the online-based form of investment, i.e. without a bank or professional financial advisor. The word is a neologism of social media and online trading. Investors trust in the collective intelligence of other investors on social trading platforms and base their investment decisions on those of the other participants.

The social trading investment form allows the portfolios of other members of a platform to be viewed, discussed and replicated. Signs of social trading are registration on a trading platform, options for comments and sharing, and rating functions for financial products or trading strategies. Not every social trading platform has all the hallmarks.

The so-called signalers are referred to as social traders, these are the investors whose strategy brings the highest return. Most of the time, your portfolio is presented in a public sample depot that any registered user can access. These can be professional asset managers, but also new traders who do this purely as a hobby.

Social trading is also becoming social investing and combines stock market trading with the functions and advantages of social networks. In this way, even inexperienced investors can benefit from the knowledge of successful investors and exchange information about developments on the financial markets with other users.

Social Trading Platforms – What strategies are there?

The community is at the heart of social trading. The exchange between the social trading followers and the social traders, i.e. the signalers, is important for the “social investment”. All members of a trading platform can view the trading strategy of the signal provider, including all purchases and sales of securities or investment products. The respective strategy as well as the value development of the public model portfolios are usually shown without any gaps.

Social traders always post their trading strategy, but the way followers follow and participate in these strategies varies.

With mirror trading, the entire strategy of the social trader is adopted 1:1 and applied to your own portfolio. Mirror trading has been used since the early 2000s. The trading platforms usually take over all account activities fully automatically, so that the follower only logs in regularly and checks the account balance. Each follower is free to choose their own risk management parameters.

With copy trading, the followers invest in the trading strategy of the social traders. Which securities this ends up in depends on the respective social trading platform. Some of these portals specialize in a few offers.

What is copy trading?

If the most successful social traders are profitable on the social trading platforms, then it makes sense to invest in the financial markets they have chosen. This is most easily done with copy trading, where users automatically copy the trader’s portfolio of their choice and replicate it in their own account.

Copy trading is particularly suitable for investors who do not have the time or inclination to acquire comprehensive financial knowledge. Instead, you can benefit from the knowledge of experienced traders. Some social trading platforms allow customization of the automation, where the selected investor’s trades are copied into their own user account.

Depending on the provider, it is possible to automatically adjust the trades of the selected expert to your own portfolio size as a percentage. Also, some social trading platforms allow signals to be sent only when there are changes in the main depot. Each user can then decide individually whether to follow with their own trade or not.

For whom is social trading suitable?

Above all, members have added value through the copy trading experience of all actors on a social trading platform. This makes it easy to see which trading strategies make sense and how certain values ​​are developing. The collective intelligence of the users of such social trading platforms is based on the assumption that together we can know and understand more about what should lead to success in the end.

If specific decisions or assessments can be made precisely, then the users always benefit from social trading. These are often young people with little fear of digital technologies and financial transactions away from traditional banks and asset managers.

Social trading or copy trading is aimed at people around the age of 20 to 30 who have already done some trading and believe in the added value of a strong community. They like to try new things and want to learn more. This is done by engaging with the other trading strategies.

Most followers are male, study or are in training. The typical investment sums are rather small, so it is mainly small investors.  In addition, the barriers to entry are low and the transaction costs are generally low. This means that users who do not have a deep understanding of investment forms and strategies can also participate in social trading.

What are the advantages and disadvantages of social trading?

  • Social trading via internet platforms attracts favourable and transparent cost structures. Among other things, these result from the fact that registered users do not have to pay the otherwise typical costs and fees, such as the front-end load or any commissions, on social trading platforms.
  • It is an alternative form of investment with relatively low fees and entry for investors from around 50 to 100 euros.
  • Completely transparent trades by signalers are an exception in the world of finance
  • Depending on the provider, community members benefit from charts, analyses or investment tips.
  • Social trading platforms combine social aspects with the option of financial investment.
  • Uncomplicated entry into securities trading with low barriers to entry.

 

What are the copy trading experiences or risks of social trading platforms?

There are not only positive copy trading experiences because social trading platforms also harbour risks. These are primarily due to the fact that these social trading platforms are not subject to any regulations and are not otherwise subject to the usual requirements of the financial market. Anyone can promise investors greater accessibility to investments and profits without having to be a proven expert.

Despite the high level of transparency in the transactions, it is often not clear who is behind the leading model portfolios. With some financial products, there is a lack of long-term forecasts so that often only a specific moment can be mapped.

If there is a sudden price drop, automated trades in copy trading can lead to losses because there is no appropriate user intervention. Social trading platforms often tempt inexperienced investors into highly speculative financial products and hide the actual risk of volatile stocks.

Even if the cost structures in social trading appear favourable at first glance, high costs are often hidden in the so-called spreads, the difference between the ask and bid prices.

 

What is NAGA Copy Trading?

Behind NAGA Copy Trading is a FinTech company, NAGA Group AG, which was founded in 2015 by Yasin Sebastian Qureshi and Benjamin Bilski. The company from Germany, which is traded on the Frankfurt Stock Exchange, is regulated in Cyprus.  The start-up’s main office is in Hamburg and the current valuation is 250 million euros. That is ten times as much as at the beginning of 2020. According to its own statements, the social trading platform NAGA has more than a million users.

Investors can already participate in social trading with an investment of €250 and also start with cryptocurrencies such as Bitcoin. The dynamic trading and social trading platform offer over 750 different markets and over 500 stocks for investors to trade over mobile or web with a completely free account. There is a physical Mastercard and a payment app, Naga Pay.

How does NAGA Copy Trading work?

As an innovative social trading platform, NAGA naturally also offers copy trading. Copying positions from other depots is done either through the Naga Copy mobile trading platform or the web. However, the fully regulated and transparent company also allows its users to be copied. This function is called NAGA Pro in NAGA Copy Trading. To find out more about NAGA Copy Trading, interested parties should use the free training courses and get support from a personal advisor.

 

The top traders are presented on the NAGA Leaderboard. You invest in more than 950 instruments with over 40 currency pairs, CFDs on cryptocurrencies, futures and ETFs, real stocks and real cryptocurrencies with potential such as Bitcoin, Ethereum, Bitcoin Cash and XRP. NAGA Copy Trading is available for both MetaTrader 4 and 5 as well as the NAGA Web-Trader.

In order to start NAGA copy trading, the first step is to find the right trader to copy. The company provides detailed trading statistics and rankings for all traders at NAGA Copy Trading, which can be automatically copied and show the statistics transparently. NAGA Copy Trading leaderboard shows the sum of gross profits made on NAGA. Through filters, users select traders based on their bio, trading statistics, feed posts, or trading history.

A prerequisite for participating in NAGA Copy Trading is having sufficient funds in the account, including enough funds to maintain open trading positions or close losing positions. The trading app allows setting up NAGA’s auto copy feature, which copies the trades of various experienced and successful traders, with just a few clicks.

The copy trading experiences at NAGA so far have been consistently positive, although there has been some negative feedback from users. These are mainly aimed at the long processing time for ID verification, the incompetent customer service and the high fees. The negative copy trading experiences also report on various difficulties with withdrawals.

 

What is NAGA Autocopy?

With the innovative AutoCopy function for automatic NAGA Copy Trading, the provider offers a solution that allows users to have their money under control at all times. With just one click, the trading activities of the selected trader are automatically copied to your own account. Although the trading activities are copied, users always have full control under the “My Trades” section and can monitor and manage all activities there.

The fixed amount per trade when auto copying is 50 USD. The investment option “% ratio to top trader” shows the minimum amount, i.e. the minimum available position of an instrument. NAGA Autocopy reflects the expertise of the selected top trader and his trading activities in his own account.

The procedure is as follows:

  • Select dealer
  • Use the “Autocopy” button
  • Select “Autocopy” type
  • Enter investment amount
  • Click on “Autocopy” button to confirm

The parameters set by the user set the framework for the NAGA Autocopy. They are based on an automatic algorithm that links the original position to the copied trading positions. If the original position closes, the copied trading positions will also be closed. It is possible for a user to copy an unlimited number of traders at the same time.

The two functions “Fixed amount per trade” and “In % relation to top trader” are available in NAGA Copy Trading mode. These are the differences:

Fixed amount per trade-in NAGA Autocopy means that the user can set the amount of their investment regardless of the order volume of the top trader. However, the minimum autocopy amount is 50 euros. However, it is important that there is sufficient credit on the account to copy all trading positions.

In NAGA Autocopy, the function “In % relation to top trader” means that the size of the investment depends on the volume of the top trader. Even if you select this function on the social trading platform, there must be sufficient credit in the account.

Conclusion

Social trading is one of the trends in the age of digital finance. Investing is now also available to small investors and newcomers, who can participate in financial success without much effort and with little time simply by copying the trading strategies of successful top traders.

NAGA Copy Trading is just one example of how easy it can be. This investment tool is particularly popular with young people who want to try something new and are open to new methods. The classic financial market is changing rapidly and social trading platforms like NAGA do not require expensive asset managers or brokers.

As part of the community, users benefited from opinions on securities and the copy trading experiences of top traders. However, the risks of copy trading must be considered, which are basically the same on each of these social trading platforms. Basically, social trading is a risky practice and investors need to be aware of the risks before transferring their money to the social trading providers.

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