Social trading is a service mimics the trading floor of stock exchanges. It is an excellent way to “learn the trade” from already experienced traders. They allow novices to follow and learn from a large number of people and discuss their ideas with people with different perspectives, which is always important in order to maintain objectivity.
Beginners can now learn while working and hone their skills by following experienced and successful traders. They can study by observing and get some much needed hands-on experience. Most importantly, now it is possible to utilize all of the years of experience of more seasoned traders in a remarkably efficient manner. This will make your learning curve skyrocket as you can shave off months or even years of painstaking research, studying and practice.
Community of Traders
Social trading communities attract all kinds of people. Their varied opinions, skill levels, perspectives and backgrounds create a veritable wealth of information and puts it all at your fingertips. You can learn techniques used by some of the best traders in the field and adapt them to suit your own trading style. Probably the most important part of social trading networks is the fact they are social. You can always ask for others’ opinion about your trading strategies, or offer your own. That way communities refine their knowledge and become stronger. Constant self-improvement will reduce risk and allow entire groups to profit.
Trade Like a Professional
If you fully utilize all the advantages of social trading networks you can be sure if your read of market behavior is accurate, or that you’re using charts and technical analysis correctly. Valuable information you obtain by being a member of social trading networks allows you to avoid simple rookie mistakes. One of the main reasons of the popularity of the social trading phenomenon is the ability to follow other traders. You can choose those that suit you by checking out their success rate, their trading habits or the number of followers. This way you can create a collection of reliable and successful traders you can learn from. The easiest form of trading using social trading platforms is copy trading. You simply allocate a part of your trading capital to a trader. The platform will automatically execute identical trades in proportion to the capital you allocated. You can follow multiple traders in this way, indeed it is inadvisable to simply allocate all of your funds to one highly rated trader. Even the best traders can have an unlucky streak. Selecting the right trader to follow is an important part of copy trading. Be sure to take into account their entire history, consistency and regularity in trading, number of followers and risk/profit ratios in their portfolios. Don’t forget to keep checking up on traders you are following and keep an eye out for new traders who show promise. Some traders may lose their touch, others can step up their game drastically. Also, keep learning as much as you can about the market, that combined with analyzing and following other traders will allow you to make your own strategies and trade your own positions. After that, the sky is the limit; if you’re really good at trading, maybe you will even have some followers of your own.
About Rad Basta:
User acquisition manager at TradeCrowd – Social Trading Network, avid trader and tattoo fan. In love with social aspects of trading and in constant pursuit of the perfect trade.