Why We should not Copy Trades of Others

I have been reading a post on the Facebook Group about how someone has lost a considerable amount of money in Adani Enterprise by entering at the wrong time and not selling by copying someone's else portfolio.



If you see the five-year chart of Adani, you will see that from the last of 2020, the price has picked up and now when the fraud has come to lite it has started going down again. So people who bought Adaniat the time of 2020 or even 2021, for them they will be in profit right now. But people who have entered 2022 by just copying the trades of others and not selling because of the loss are at a huge loss now.

This is just one instance and there are other instances too. Like people have started tracking Warren Buffet's style of investing by just copying him. But that will never wor, he has the ability to take huge losses as well as his entry will be quite different from yours. Along with that, they know their entry and exit very well, but in your case, you have to create your own strategy to actually go ahead with the game.

And this is the number one reason why investing or trading should not be copied at all. You can take minimal risks and start learning before actually starting investing. That is you should emphasize learning and not copying. You can see the wonders in the stock market once you can create your own strategy that works.

It's not that you should not look at their portfolio, we all should understand their investment structure. But just blindly copying should not be done at all. That's why I always stay away from tips and other things online and do not buy shares based on online recommendations. I always try to research (not extensively) and invest.

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I am a Proud Indian working as a developer in the tech hub of India (Bangalore). I am also a blogger who loves to write about technology, finance and programming.

CodingDefined's Blog
CodingDefined's Blog

I am a Proud Indian working as a developer in the tech hub of India (Bangalore). I am also a blogger who loves to write about technology and programming.

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