Why is copy trading dismissed by so many investors?

wmb194

It's always easy with hindsight.

boingy

I'm pretty sure I'm a hindsight millionaire. 

The reason copy trading is dismissed by so many is simply the huge risk associated with it. You have to be wary of people showing you their huge gains, because behind them there are hundreds more people hiding in embarrassment because of their hugs losses.

InvesterJones

Joedavis said:

InvesterJones said:

Sounds like you got lucky if you picked an investor who also happened to get lucky. Have any of them managed it twice though? And what are they investing in?

Crypto mostly. But the thing is, she's managed this through a period where crypto has been in the mud. 

Check your numbers carefully in that case, they don't look like they've made 3000% returns in the last two years.

masonic

Based on the above figures, she's been carrying a large loss since Nov 2018 and has only broken even in March 2024.

Joedavis

InvesterJones said:

Joedavis said:

InvesterJones said:

Sounds like you got lucky if you picked an investor who also happened to get lucky. Have any of them managed it twice though? And what are they investing in?

Crypto mostly. But the thing is, she's managed this through a period where crypto has been in the mud. 

Check your numbers carefully in that case, they don't look like they've made 3000% returns in the last two years.

But it is 3000% up. I'm as surprised as anyone. 

callum9999

Joedavis said:

InvesterJones said:

Joedavis said:

InvesterJones said:

Sounds like you got lucky if you picked an investor who also happened to get lucky. Have any of them managed it twice though? And what are they investing in?

Crypto mostly. But the thing is, she's managed this through a period where crypto has been in the mud. 

Check your numbers carefully in that case, they don't look like they've made 3000% returns in the last two years.

But it is 3000% up. I'm as surprised as anyone. 

Assuming that's accurate, you must have therefore "invested" at a point where she had made an enormous loss, which she has managed to recover.

But for the second time, her ability to have done that once doesn't mean she can do it again. There's a reason why everything is plastered with disclaimers about past performance not predicting future performance - no matter how much you want to believe it does, despite literally being shown month after month of her producing losses. 

Joedavis

callum9999 said:

Joedavis said:

InvesterJones said:

Joedavis said:

InvesterJones said:

Sounds like you got lucky if you picked an investor who also happened to get lucky. Have any of them managed it twice though? And what are they investing in?

Crypto mostly. But the thing is, she's managed this through a period where crypto has been in the mud. 

Check your numbers carefully in that case, they don't look like they've made 3000% returns in the last two years.

But it is 3000% up. I'm as surprised as anyone. 

Assuming that's accurate, you must have therefore "invested" at a point where she had made an enormous loss, which she has managed to recover.

But for the second time, her ability to have done that once doesn't mean she can do it again. There's a reason why everything is plastered with disclaimers about past performance not predicting future performance - no matter how much you want to believe it does, despite literally being shown month after month of her producing losses. 

Well yeah. Crypto goes up and down. She's got an extremely good record of navigating through the down periods. I obviously wouldn't invest with her now as it's peaking but I'll certainly consider doing so in the next dip. It's amusing that you're so determined to believe the figures are wrong. 

InvesterJones

Joedavis said:

callum9999 said:

Joedavis said:

InvesterJones said:

Joedavis said:

InvesterJones said:

Sounds like you got lucky if you picked an investor who also happened to get lucky. Have any of them managed it twice though? And what are they investing in?

Crypto mostly. But the thing is, she's managed this through a period where crypto has been in the mud. 

Check your numbers carefully in that case, they don't look like they've made 3000% returns in the last two years.

But it is 3000% up. I'm as surprised as anyone. 

Assuming that's accurate, you must have therefore "invested" at a point where she had made an enormous loss, which she has managed to recover.

But for the second time, her ability to have done that once doesn't mean she can do it again. There's a reason why everything is plastered with disclaimers about past performance not predicting future performance - no matter how much you want to believe it does, despite literally being shown month after month of her producing losses. 

Well yeah. Crypto goes up and down. She's got an extremely good record of navigating through the down periods. I obviously wouldn't invest with her now as it's peaking but I'll certainly consider doing so in the next dip. It's amusing that you're so determined to believe the figures are wrong. 

 They really don't have an extremely good record - it's there for all to see. So going back to your original question, copy trading not only relies on the trader you're copying timing the market (which if they could do reliably, they would be working for a hedge fund rather than looking for small rewards on a public platform), but also you timing your entry/exit into the copying of that person - companies are hard enough to time when they publish full results, but timing another random person on the internet who's working you can't ever understand? Madness.

Malthusian

Joedavis said:

Well yeah. Crypto goes up and down. She's got an extremely good record of navigating through the down periods. I obviously wouldn't invest with her now as it's peaking but I'll certainly consider doing so in the next dip. It's amusing that you're so determined to believe the figures are wrong. 

It's not about belief. The figures are objectively wrong. As has been pointed out, her monthly performance figures do not square with the supposed 3,000% return. It doesn't exist. It's a pretend performance figure for a pretend portfolio. 

The entire point of a virtual portfolio is to tantalise you with "what you could have won", so that you put real money in, at which point the usual mechanics of day-trading take over and you lose your shirt.

Is the phantom 3,000% figure caused by a glitch in the software or is it something more nefarious? I don't see that it matters, if you YOLO money into her portfolio, the effect on your wallet is going to be the same either way.

"Why is copy trading dismissed by so many investors?" - well, this is a great example.

Crypto goes up and down. She's got an extremely good record of navigating through the down periods. 

Over the lifetime of her gambling career she's made a total return of 8% (that's since launch, not per annum), over five and a half years, and this is after a crypto pump. Such returns, many lambo.

"Ah but I can buy in when she's about to do well and sell before she does badly." Doesn't that defeat the purpose of copy trading? If she's clever enough that it makes sense for you to copy what she does, why isn't she switching in and out of cash at the correct moments herself?

callum9999

Joedavis said:

callum9999 said:

Joedavis said:

InvesterJones said:

Joedavis said:

InvesterJones said:

Sounds like you got lucky if you picked an investor who also happened to get lucky. Have any of them managed it twice though? And what are they investing in?

Crypto mostly. But the thing is, she's managed this through a period where crypto has been in the mud. 

Check your numbers carefully in that case, they don't look like they've made 3000% returns in the last two years.

But it is 3000% up. I'm as surprised as anyone. 

Assuming that's accurate, you must have therefore "invested" at a point where she had made an enormous loss, which she has managed to recover.

But for the second time, her ability to have done that once doesn't mean she can do it again. There's a reason why everything is plastered with disclaimers about past performance not predicting future performance - no matter how much you want to believe it does, despite literally being shown month after month of her producing losses. 

Well yeah. Crypto goes up and down. She's got an extremely good record of navigating through the down periods. I obviously wouldn't invest with her now as it's peaking but I'll certainly consider doing so in the next dip. It's amusing that you're so determined to believe the figures are wrong. 

It's amusing that you're so desperate to sell her as the Messiah.

I've questioned the figure ONCE - because it's an absurd figure that isn't corroborated by anything whatsoever. How on Earth is that "determined to believe it's wrong"? It's called critical thinking - perhaps that is why you're struggling to understand this, you don't use any.