Demystifying the art of copying most profitable traders and Winning!
Friday 2nd December 2016
Observing trade signals is difficult especially for newbies. They seek shortcuts and ways to copy or borrow the ideas from other successful investors to become fruitful in the market.
In this scenario, social trading came into picture. Social trading is also known as copy trading since the investors utilize the trends of other successful investors for their investment and financial decisions by gathering the relevant information on the internet. Thus, social trading helps the investors to reduce their risk due to their selective trading and investing on stocks that are already profitable in the market.
Social trading is becoming very popular in recent days. One can become a successful social trader by observing the trading activities of effective traders. It can be done by web applications or social networks.
Most of the prospective traders think that they will become Warren Buffet overnight using copy trading by minimizing risk and maximizing return. But, this is not as easy as they expect. Hence, several social trading platforms came into the market to help the new investors in this matter. However, it is up to the own judgment of the trader to assess the risk without copying or imitating the so-called efficient traders blindly.
Many social trading platforms reveal the gains of a specific trader, but they don’t generally indicate the losing positions, hoping to get success in those positions at the end of the day. However, unexpected losses are common. So, irrespective of whether the trader being a newbie or risk averter, it becomes essential to have a keen eye on the market trends to get better results and be successful.
Traders need to take certain precautions and follow tips in the art of copying to become the most profitable traders and winners.
Most of the traders blindly bet on the specific trader recommended to them irrespective of what actually is traded by the trader. Since social trading involves copying the successful trader they follow him without any thought. Moreover, they believe the trader with many followers is the best trader. But, it is not good and mob mentality is not correct. Hence, it is better to have all the relevant information before choosing the investment portfolio. In other words, a successful strategy should be designed based on the recommendations and followed accordingly.
Avoid those social trading platforms which have limited screening facilities. If a platform does not allow you to get all the required information at a glance, then it’s a good indicator to stay clear of that platform. If you want to choose a social trading platform, select the one with plenty of screening mechanisms.
Also, select a platform that is ready to solve your problems and be at your disposal via live chat or email. An ideal platform should be keen to answer your queries as soon as possible. Otherwise, you have to depend on Google for your issues.
Communicate with successful trading experts so you can learn in a greater detail about their strategies, market ups and downs, and their tricks and tips to spot the fluctuations.
Most importantly, start slow: If you have just entered the social trading game, do not expect your performance to be at par with that of the best traders on whom you rely or copying from. Always be prepared to bear the inherent risks involved due to market trends.
While there are enough reasons to go for Social Trading, there are reasons why you shouldn't blindly jump into it. It is also important to realize that even though the trader you are copying is an expert, he may not succeed in his efforts due to market fluctuations. Most of the times, you don’t even fully know them. Hence, extensive bias towards an investor is not good. Be brave in hard times. You will not lose all the times. So, fill hope and courage, and stand up to win!
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Editorial Contact Details - Conor Shilling