In trading, you need to know how to recognize good traders. You need to learn it and know how it works. Recognize good traders are not easy. Therefore, you know what to do and prepare the worst things for your trading.
Social trading is based on the idea you are going to use the knowledge given by other traders so you don’t have to learn all the skills you need, yourself. You can’t say if the information is good until either you check the data given, or you decode the charts and get all the information on your own. Until then, there’s no guarantee you’ll be doing it right.
Community Feedback
One of the most popular tools to evaluate a traders performance in the social trading sector is community feedback. If there have been traders who have followed the one you’re looking for in the past, then they will have left some sort of feedback through comments and ratings. Point is, this is certainly one of the indications that you should look for.
Point is, reviews from the group can be an indicator, but don’t let that be the only one. Using to affirm or disprove what you already believe.
Trading History and Gains
Many platforms give you the ability to look at a traders investment history and current portfolio. You will see just how much (usually in percentage) they have won and you can deduce how good they are. It isn’t completely true though.
Over the last six months, there are many traders with more than 400% benefit who have had many losing trades. One of the things they might do to raise their ratings is to leave open the losing trades. When you see a trader opening up a lot of losing positions, that is usually a negative indication (unless it’s a part of a very long-term strategy).
Portfolio, Profile, and Risk Management
And can the profile tell you a lot, too. A successful trader should take the time to complete his profile and want to be followed. If the profile is not completed, this may mean that the trader is fairly young, or that he is not interested in his own profile too much. If that’s the case, consider someone else to suit better.