Beware of Copy Trading

There is a new but not new method of trading stocks, options and so on that is on the rise marketed to “Gen Z and Gen Y”. It is called Copy Trading, where social users mimic the transactions of another stock trader (presumably a successful one) with their own real dollars. This sub-culture of popularized stock trading, rather than investing, has yet to prove profitable for the wealth of followers but has resulted in a few teen suicides over insurmountable losses. This concept of young social stock trading elicits warnings about “the herd effect” and the “meme stock” phenomenon (a form of mindless stock manipulation).

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