What is Social Trading?

Have you ever wished you could 'copy' trades off successful traders? Did you ever think to yourself, "Gosh, I wish that guy'd let me in on his trades as he was making them." This is precisely what social trading allows you to do.

 One of my hobbies is drawing and the easiest way to learn to draw is to copy someone else sketches (start with simple ones and the progressively harder ones), and then draw while referencing a photograph and then progress on to drawing real life scenes. I remember when I started learning to trade. I would often think to myself, there's got to be a better way to learn how to trade, like copying off somebody else. Well, social trading allows you to do just that. You may not make as much money as the person you're copying off but having access to a successful traders' trades gives you a starting point to understand how successful trades work.

Learn More About Social Trading

Prior to the internet boom, the only access to someone else's trades was via newsletters sent out by brokers, which also meant (1) a big delay between the trades being made and newsletters being sent out and (2) your pool of info was limited by which brokers were sending you info. Today, with social media being something you carry around with you in your purse or back pocket (in your smartphone, in case you didn't get it) any and all information is transmitted in real-time and is always available. The world of trading has caught up with this and brokers such as ayondo, Zecco, Curensee and eToro are some of the platforms that incorporate social trading into its trading platforms.

 The key to making social trading work is unencumbered flow of information. Small traders can now trade with the big boys where traditionally, you would need money and a certain amount of status to get you into their 'clubs'. As with many other things, social interactions across the web has changed this and money and status are no longer an obstacle to plugging into the right network. But here's the key: "THE RIGHT NETWORK." The information you receive is only as good as its source so pick your sources carefully. Follow successful traders but bare in mind that even the best make mistakes. Be ready to cut your losses if you don't have the holding power to ride out a down trend and always, always remember: you are the only person ultimately responsible for your own trades.