SOCIAL FOREX AND SOCIAL TRADING. It is a relatively new mode of trading that gives users instant and continuous access to market information through the power of the internet. Unlike fundamental and technical analysis, in the case of social trading, the information is generated by other users, which allows novices in the field to make transactions without having to perform the analyzes themselves.
In essence, you base your investment decisions on data and analysis done by others. The process allows you to research or help others in your field. Not only is social trading beneficial for new and experienced traders, but it also shortens the learning curve for newcomers. Platforms like Etoro detailed here, offer you to get started in the world of trading easily.
Social Trading Basics
Social trading allows users to share information with other members of the community in real-time. As one of the inherent advantages of the process, it allows new investors to witness trades made by veterans and then replicate them. Thus, newcomers can see how experienced Traders do business, why they take certain actions, and what they are looking for. Thus, it allows newcomers to learn faster and in a real environment. Also, it gives them the opportunity to trade with less risk. In the past, it was not uncommon for a new trader to blow up all his funds before he learned how to invest. Social trading reduces the risk of such a situation, although it does not completely eliminate it.
Sharing information and learning from the best is only the first step in social trading. Over time, you can copy traders (a process called “copy trading”), as well as work with other like-minded people within a group for mutual benefit. You will learn, exchange, create new friendships and earn money. Social commerce opens the door to endless possibilities. It significantly shortens the learning curve for a beginner to an intermediate-level trader. Before you know it, you will be able to make your own trades and even help newcomers become traders.
You will learn how to read charts, make reliable predictions and earn money in the market. However, you should never forget that there are risks. Nothing ruins your day more than taking enough losses to completely wipe out yesterday’s profits. You will need to learn how to manage your money properly so that this rarely happens. Luckily for you, there’s a whole community you can count on.
There are many social trading platforms today. Most of them offer similar features, although some stand out for their ease of use and ergonomics. Ask users beforehand to choose the platform on which you are about to start.