Forex and stock exchange trading had long been a game only for those who understood them well and had big monies in their accounts to trade with. The traders, who didn't have enough experience to know what strategies to apply in particular scenarios, preferred to stay away from any type of trading. However, time changed the way people traded and now even the newcomers can enjoy the strategies that are followed by the best and most experienced traders in the market. This is done through mirror trading. Mirror trading is also known as copy trading on many different online platforms.
The concept of mirror trading is quite self-explained as you look at its name. The traders are allowed to copy the trades of someone. The question is who these someones are". These people are the most experienced traders in the forex market who have been trading for years and decades and are willing to share their trading strategies with new people in the market. This is to help the new traders benefit from their trades as much as they can and avoid the losses and unsuccessful trades that might arise from trading at times when it is not most suitable to trade.
Technology has allowed modern traders to copy the trades, buying and selling signals, and the strategies of these experienced traders with the latest platforms used for trading. Many modern trading platforms provided to traders by online brokers now have the features of letting them do mirror trading. These platforms have a section where the traders can see the many strategies and trading signals from the most experienced traders. Each platform has its own set of traders whose trades and strategies are duplicated and copied on the software. The traders who wish to do mirror trading are free to copy these trades manually or automatically.
The good thing about these copy trades is that the traders using them can access as many strategies as they want and apply the ones that they consider most suitable according to their trading nature. Some strategies could be aggressive whereas others could be more towards the passive side. After selecting one or multiple strategies the trader is free to put his software (also referred to as the trading platform) on automatic mode wherein the software will take the decisions on behalf of the trader based on his choice and selection of the strategies.
The traders using platforms with mirror trading view complete history of the trades that have been performed by the traders they are copying. This gives them an opportunity to know how the trader they are mirroring has been performing in the recent past, what is biggest loss has been and what the sizes of their general trades are. These platforms are equipped with dozens of indicators to help the new traders know the full condition of the market and base their strategies based on these indicators. With real-time interactive charts and trades possible right from these charts, these platforms have taken mirror trading to a whole new level.