Social trading has gained popularity over the years and it is even known as one of the best things to have ever happened in the online trading community. Its popularity is nothing without good reasons.
It has been known to the public because of the huge influence of the Internet on everyone’s lives nowadays. Gone were the days when trading seemed to be a tough industry to penetrate.
Before, you need to have intensive knowledge and skills related to the market that you want to venture into – be it indices, commodities, or Forex. But these things were greatly changed. Aside from your own knowledge, you can also depend on the knowledge and expertise of other traders.
You can imitate their advanced trading skills and gain exposure to the market. That concept is called social trading.
What is social trading? How should you use social trading? To say it simply, social trading is a service that allows investors to copy or imitate the trading operations of experienced and professional traders.
This service paves the way for beginners in learning new things by linking the trading accounts of professional traders as well as replicating their trades for a much better chance of winning in the market.
Fortunately, you don’t have to be adept at the market to be able to effectively use social trading.
Through the use of social trading, newbies are able to practice the successful trades of professional traders.
They can copy their trades, real-time! Individual traders were able to build a group of other traders that followed the steps of an advanced trader, similar to the concept of ‘following’ in social media sites like Twitter.
You can easily use social trading through trading platforms that allow copy trading functionality.
Trading Platforms With Copy Trading Functionality
Currently, there are a lot of trading platforms that offer this copy trading functionality. Platforms like Zulu, xSocial, eToro, MetaTrader4 and 5 are just a few to mention.
Outside these trading platforms, there are brokerage firms that allow brokerage firms to easily connect with traders that are more experienced and advanced.
In social trading, when the professional trader exits a trade or uses some trading features just like take profit or stop loss, the accounts that are linked to it will replicate the move.
Social Trading As The Future of Trading
As we deal with our own duties in life, we become busier and frantic to handle our daily lives. On most days, we are always rushing and trying to catch up with the responsibilities that we have in our modern lives. This gives us very little time to improve our knowledge about trading and the skills that need to be obtained to achieve our trading goals.
But when you find someone that is capable enough to deal with the market, it would be less hectic. Through the use of social trading in MetaTrader, you can entrust your funds in the hands of capable traders, someone more experienced than you and more reliable in making tough trading decisions. All you have to do is to follow their moves.