Social trading works in the same way, using real-time information gathered from other traders and investors allows users to make informed trading decisions. Both first time investors and experienced traders can benefit from this different analysis approach. Only risk capital you’re forex walkthrough to lose.
Past performance does not guarantee future results. Social Trading is the real-time sharing of trading actions be it signals, trade ideas or news between traders over a network allowing traders and investors alike to follow each others’ actions. Without Social Trading, traders are required to learn trading strategies involving aspects such as Technical or Fundamental Analysis. For instance, one can use Fundamental Analysis to pick a stock to invest in by looking at the company’s information such as financial performance, leadership, dividends history etc. However, newbies and experienced traders alike can take the back seat and let the experienced traders do the analysis and get this information via Social Trading Networks. Social Trading vs Copy Trading vs Mirror Trading Most people use Social trading, copy trading and mirror trading interchangeably to mean the same thing.
Copy Trading and mirror trading can be considered as narrower forms of Social Trading. Mirror trading on the other hand is very similar to copy trading but associated with automated trading strategies or programs. Investors utilizing mirror trading are connected to copy trades from automated trading programs based on different strategies that are offered by mirror trading companies. Does Social Trading Work Most people looking to get into Social Trading are always sceptical on whether they can profit from Social Trading Networks such as Zulutrade and etoro.
Though trading in general contains inherent risks, most Social Trading Networks have advanced features that make it possible to pick profitable and consistent traders to follow. Due to this, Social Trading does work and one can make a decent return. Accessibility: Major advancements have been made in the field of social trading and numerous social trading networks now freely available for all traders and newbies to choose from. Potential for Passive Income: Social Trading is considered one of the major ways to earn extra income online without spending too much time.
By following successful traders, you replicate their success and hence make profit without having to trade yourself. Reduces your trading learning curve: Social Trading allows you to follow the activities of well experienced traders, and hence you learn more from watching. Whats more, its the best way to earn as you learn by replicating the success of profitable traders. Social trading demo accounts: Most Social Trading Networks will allow you to have a social trading demo account allowing you to simulate the real world of Social trading completely risk free. Eliminates emotional trading: Social Trading Networks allow you the access to numerous trade ideas from experienced traders all over the globe, this increases your trading confidence and aids in making decisions as you are able to gauge aspects such a sentiment from the crowd. Extra revenue for traders: If you are an experienced and profitable trader, you can also earn extra revenue by connecting to Social Trading Networks and providing your trades to followers for copying. Open an account with one of the Social Trading Networks.