By going through this tutorial you will be able to find what social trading is, its features and how it can help you in trading and the best social trading platforms basically.
- What is Social Trading
- Importance of Social Trading
- Getting to know the best Social Trading Platforms
- Copy Funds and its importance
Let the professionals work for you.
In today’s world with a very busy schedule, no one can spend a comparatively higher amount of time to study, follow and analyze market affecting factors like financial behaviors of countries’ economies, currency rate fluctuation, political situation . When trading with Forex, an individual must be aware of changes, trends and patterns of the above mentioned factors in a specific period of time to make successful and proper predictions. And it’s not easy. Because even during the time you spend studying things, Forex is in the business. Rates go up and down. A delay of a second may bring a whole time frustration.
Social Trading and its role
Social trading comes with a solution to all these challenges making a person who has interest in Forex Trading more aware of the situations. With Social trading the investor/Forex trader gets informed of everything that happens around so that he will not miss valuable opportunities in the game.
Think of a network that allows you to watch other or pro traders’ behavior, study their strategies and progress transparently. That’s a “Social Trading Platform”.
Social trading is the process we study and follow the pro traders. There is one special thing we need to learn in social trading is that it allows you to copy other traders successful strategies. This makes Forex trading much easier while all the risky and hard parts (analytics and predictions) are done by another mind. Therefore, you can use strategies to earn profits doing some conversations with our broker.
Success in our own strategies is the goal we must achieve in trading Forex. To achieve this, one must stay on alert with the charts and other financial news analyzing them according to our concern. Social trading makes many steps to drive us to success through a professional while leaving the investment part with us.
Algorithmic trading or Automated trading is a method of trading invented through computer programming. From the early stages, financial technicians had been researching about computer programs' capability of handling trades alone. As a result, programs called algorithms came into existence. The reason behind why it is called as an algorithm is because they are solely mathematical expressions. Computer technology made this process much easier the traders with lesser mathematical and trading knowledge. So that algorithms could also be used in trading.
In conventional trading, traders make decisions by observing the overall market and specific financial instruments’ behaviour. When observing the market and financial instruments’ behaviour, human errors naturally occur. These human errors directly affect decisions in Forex trading. To avoid these errors and make the trading perfect, algorithms came in to place. Trading using algorithms changed the world by increasing the number of traders within a short period of time. Even without any knowledge in trading, anyone could follow and invest in an algorithmic trading system and the profits were guaranteed.
In today's world, Automated trading offers by many different financial institutes and Forex related companies. You have to invest comparatively a higher amount than in copy trading as the initial investment but the risk factor is very low. Among many social trading platforms, eToro offers “Copyfunds” as their automated trading portfolio. The minimum investment in Copyfunds is $5000. Though the investment is high, you only need to give very simple instructions. All the decision making and trade open, close part is handled by the algorithm to create maximum profit gaining situations. If you are really busy with your own schedule and you do not have time to spend in observing market behaviour, Automated trading/Algorithmic trading is the best solution.
Ready to give it a try? Get Started today!
Create a Forex Demo Account for 100% Free and Trade Virtually
Start Trading Now!
Create an Actual Forex Account for 100% Free and Gain Profits