Powerful trading tools that fit in one’s pocket, without a doubt, are one of the most significant leaps in the trading circles. Trading tools that enable you to move from one device to another with ease is something that is unheard of decades ago. However, as mobile devices have become more and more powerful, it will enable developers to create more advanced trading tools in the future.
It seems that everything that a trader would want is now at their disposal. But there seems to be a rising demand for another kind of platform.
This time, there is an expanding clamor for a peer platform. It’s a digital community where traders can learn from each other. It is a place of seamless exchange of ideas for the benefit of every trader. Think of it as the Facebook of trading circles. This trend, which is now in its early stages of formation, is called Social Trading.
A Closer Look at Social Trading
There are countless available tools to analyze financial information — but social trading does it better. Why? Because results are not generated by algorithms but by traders themselves. With overflowing information right inside this platform, traders can have the luxury to study various trading techniques from traders of their choice.
One of the best parts of Social Trading is it allows investors to interact with each other. Investors can ask, share, or even give advice. This will truly benefit everyone, especially the newbie investors.
What Went Before
Before the rise of social trading platforms, traders could only use technical analysis to craft their investment plan. Technical analysis does help, but the benefits it can provide can be minimal when compared to Social Trading.
Why Use Social Trading?
It Reduces the Learning Curve
Sure, a new trader can learn the trading ropes through self-study, but it would take a significant amount of time. He can also actively trade to test what he has studied or even try the trial-and-error route to gain more knowledge.
But with Social Trading, it creates a shortcut for newbie traders. It enables them to copy their fellow traders’ decision in real-time. Through this, there is an investment built for the copier. It is the same proportional amount as the investment that the copied trader makes.
Transparent
Social trading platforms have a trading profile of each trader that anyone can check. This allows traders, especially the new ones, to check the best traders they can copy. Traders can check their profile and trading history to narrow down the ideal ones for them.
Exposures on Different Areas
Learning opportunities in Social Trading seems to be never-ending, and it’s a real opportunity – even for the professional and seasoned traders. It’s not a strange fact that professional traders don’t have a mastery of all trading markets. They only focus on a couple of areas.
With traders of all shapes and sizes inside a Social Trading platform, everyone can benefit from being exposed to various trading markets. This is an opportunity to learn while reducing the learning curve at the same time. Inside a Social Trading platform, you can surely find traders who focus on stocks, cryptocurrencies, specific geographical markets and dozens of other areas.
Traders who would like to expand to other markets can copy other traders’ strategies that trade in the market of their choice.
One more thing that’s noteworthy is the fact that the information flowing inside a Social Trading platform can be worth hundreds of thousands of dollars. Now, traders can have access to this information almost for free.
Also read: How Social Media Affects the Forex Market
