What Is Social Trading?
When it comes to trading, it’s very common that new and inexperienced traders are intimated by the trading process and have a hard time making trading decisions. A lot of new traders wish they have a mentor to learn from and, better yet, some experienced trader that they can follow and learn from.
As a matter of fact, this kind of wish is quite difficult to be realized in the traditional ways of trading, where traders are on their own and most trading activities are not transparent.
However, in the recent years, a new way of trading has come into place, which might change this picture. It’s called social trading. The word social should not be unfamiliar to most of us, who live in the era where social networking has become an important part of our everyday lives. Actually, social trading can be thought of as a way to trade within a network of traders, where, just like within a social network, one can see other’s activities and even follow other’s activities.
Actually that’s pretty much what social trading is. Recently years many social trading platforms have been developed. On these social trading platforms (or social trading networks), experienced traders with a good performance history can become a top trader and can be followed by other traders. Top traders serve as signal providers. Their trading signal can be followed by other traders on the social trading platform and their trading actions can even be copied in real time by other traders as well.
Because social trading introduces transparency to trading, this new way of trading could be really beneficial to inexperience traders who wish to follow and copy trading decisions of experienced traders with proved records.
If that sounds exciting, you might want to give social trading a try. How to get started? Well, the first thing is to find a social trading network to join. Finding the best social trading networks/platforms might not be an easy task. However, if you spend enough time to study what different social trading platform offer and how each of them work, then think about that you want to accomplish from social trading, then you might be able to find a good social trading platform to join.
Becoming a member of a social trading network is not difficult. Many social trading platforms even offer you demo accounts for you to learn or get a taste of their system without spending any real money. You should definitely take advantage of this kind of offers to get started.
Also, please be aware that social trading also involves a lot of risk and you might end up of losing money. Therefore, you should always be careful before making important trading decisions. You should study the trading performance and trading style of different top traders to decide which one(s) you would like to follow.
With good practice, you can also become very good at social trading and might even become a top trader on a social trading network!