Social Trading – Watch And Learn How To Trade
Social trading is looking more and more like the future of online trading and investment. Investors are attracted by the openness and transparency of social trading and the ability to talk to other traders and copy their investments.
But there is no magic potion for making successful investments and high returns. While social trading offers some strong advantages and potentially big opportunities, this does not mean that traders do not have to analyze the markets and find the strategies that suit their budgets and financial targets.
Benefits of social trading
Social trading is a perfect fit for someone who is looking to learn how to trade and is looking for a good trading idea. The main benefits of social trading is that it significantly cuts the amount of time it takes a novice trader to analyze the market as he or she is offered a collection of ideas of other traders that have already analyzed the market.
The best use of social trading is to leverage ideas of others through supporting or objecting to ideas you have and develop on your own, the best way is to treat this like an indicator and use the data in order to make an independent decision.
One of the pitfalls considering Social trading is to enter a situation where the blind leads the blind and therefore it is crucial to use the information as part of a decision-making process and not blindly copy ideas other individuals have.
How to start Social Trading ?
The starting point for all social trading is connecting to others. There are over 5,000,000 registered traders at eToro, but fortunately the People search tool provides filtering traders by country, profitability, markets and time periods.
It is possible to adjust the searches to identify a pool of people who are subject of someone’s interest. eToro has hundreds of Popular investors among its traders and it is possible to set the account to automatically copy all their trades.
Every social trader and popular investor has a personal profile with a News Feed, Portfolio and Stats. Use all these resources to build a clear picture of who you consider trustworthy.
One of the best ways to make social trading work is being sociable and building a personal profile at eToro. Talk to people, ask questions and leave comments and feedbacks on News Feeds, and positive reaction will surely come.
Become a Popular Investor and earn a significant income when other traders copy you, check out eToro.