In the past, investors generally followed successful traders through information resources like newspaper columns, newsletters, clubs, and exchanges. Things have changed quite drastically now, because you can follow the financial experts right from your living rooms, or even while you are on the move.
Convenience of trading online:
Forex trading process has transformed a lot with the advent of electronic trading. As long as you have a computer and internet, you can get access to all different financial circles, and also place your trades online.
Now with the popularity of smartphones and tablet PCs, trading had become even more convenient. Just by downloading the trading apps, you can gain access to various trading markets, wherever you go. The traders can easily trade on stocks or currency exchange, without having to miss out on any opportunity.
How social trading works?
Social trading is based on the concept – Wisdom of thousand traders collectively overpowers the perception of one. Some of the top Forex brokerage firms like Ayondo provide sources for social trading, using which you can see the moves made by successful traders. Obviously, Forex trading has migrated from single information source to social networking, where information comes from myriads of sources, simultaneously.
Social trading websites
Social trading websites connect worldwide traders, where trades and views are shared. Investors employ the collective decision instead of depending solely on broker’s recommendation, quantitative data, or company fundamentals.
Social trading websites can be used in two ways –
- Information source – Build a watch-list to pull detailed info about a particular instrument or bring up relevant blogs, tweets, and articles.
- Follow trades of successful traders – You can follow a particular investor and even copy their trades.
Why mirror a stranger’s portfolio?
Obviously, ‘MONEY’ seems to be the only answer. It makes the whole world dance. Following the moves of a veteran trader helps you understand, which strategies work, and thus you can avoid risks of bad trades.
Join millions of smart investors, who follow leading traders. You will find that more than 50% investors are followers.
Benefits of trade and social integration
Forex trading platforms have integrated with social media like Facebook and Twitter. Social networks have leveled the playing field for huge organizations and home traders. Investors can employ social indicators, which clearly display the real-time trading data feeds.
Through social network traders interact with one another. They get a chance to learn and witness how certain traders become top performers. People get exposed to broad way of thinking. Several traders make an attempt to find the accurate balance of ideas from this pool of traders and improve their profits. Social learning enhances your decision making skills.
Social trading removes stress. It does not guarantee of being successful, but you can learn from veteran traders by getting familiar with what works for them.
Personal bias gets eliminated
Many traders enter losing trades or miss profitable ones because of personal bias.
- Some assets you hold influence the actions, which can go wrong.
- Social trading helps to guard against this, and you can change your viewpoint by trading in union with the mass.
- Your perspective broadens with other people’s input.
- Your emotions are controlled because other people’s views stops you from clicking the panic button, which could prove costly.
Enhance risk management skills
Copying and following trade activities of successful traders can help you learn about what kind of strategy to apply, under specific conditions. The knowledge gathered can be applied to keep down the investment risk, while developing your personal strategy. This is impossible to achieve without access to collective wisdom.