In Social Trading rests a completely new and innovative way of analyzing financial data through the comparison of other successful traders’ strategies, trades and analysis, where the investor has the option to follow and copy other lucrative investors trades .
As the most revolutionary of all the modern methods used to trade the financial markets, social trading has transformed the way investors trade by enabling them to observe and analyze the trading methods used by other investors, in this way allowing them to adopt those which they feel will maximize their potential to make profits. Traders have the option of copying the trades of others in their entirety, or simply selecting elements of another’s trading strategy and incorporating them into their own. Before the Social Trading revolution, all investors had as tools to trade the financial markets were technical and fundamental analysis. Today, traders can use the power of Social Trading to their advantage and compare their own decision making process in trading with that of others in order to create the optimal and most profitable trading strategy .
In addition to the above, Social Trading is an excellent tool for amateur traders as it helps them gain essential knowledge and experience by exposing them to the techniques of experienced traders. In this light, Social Trading becomes a strong element of a trader’s education and makes the learning curve smoother and quicker. Moreover, it’s fun; traders from around the world are given the opportunity to interact with one another, discuss, learn and grow from each other, all in the name of minimizing their losses and maximizing their profits.
So how does it work?
The primary function of Social Trading is to provide you with live feeds detailing the movements of other traders. Knowledge, as we all already know, is power; by getting direct market insights to other traders’ activity you are equipped with key information on current market trends, a variety of strategies and a multitude of new trading ideas .
Naturally, you will either lean toward those traders that yield the best trading results and make profitable decisions, or those who use similar techniques to those you are already accustomed to. With Social Trading, you have the freedom to follow whichever traders you please, engage with them directly and ultimately, copy their trades .
As mentioned earlier, the whole point of participating in Social Trading is to discover the trading techniques which will bring you the most profits by observing successful traders, and ultimately, copying those techniques. If you do not wish to place all of your available investment funds into copy trading, you can allocate part of them and spend your time perfecting your own strategies while diversifying your portfolio .