Well as we know there are some influencers or traders who are giving signals while trading live. I have seen one influencer too who comes live trading with millions of followers and gives signals.
Now, social trading may be beneficial but great care should also be taken before choosing a right trader. For new social traders they need to do a bit of in depth analysis finding a good fit.
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Fanbase
It's possible to see how many followers a trader has. If a trader has a big number of fan following that means that people are trusting him for his signals.
On the other hand, if a trader has very few followers then it must be hard to trust them. But you should also bear in mind that the most copied trader doesn't mean he is always the best. Such as some may be copying trades from other traders or making different accounts and sticking to the one that by chance made a profit.
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Consistent Returns
Obviously a trader with negative returns should be avoided. But on the other hand, a trader with high returns or you can say unreal returns should also be avoided. By high returns it means someone who is above 70% in profits a year and that sounds unusual because that could be the result of some risky trades with a bit some some lucky trades as well.
Always look for those who are consistent in their monthly average returns.
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Number of Trades
Anyone who has small amount of trades like less than 50, means you can't consider him because he might have gotten lucky in those trades.
Instead look at those traders who have made a large number of closed trades like atleast more than 100 trades to ensure they actually know what they are doing.
If someone can achieve such a large number of trades with success that means its likely their success is not down to luck alone.
PS: We have a few more things to consider following a trader and I will try to share it with you guys depending on the feedback from the community.