Social trading is a new way to gain access to and gamble in the financial and commodity markets. Social trading is where traders from all over the world are linked together on one big online network, much like Facebook. This specialized traders network provides a platform from where they can utilize each other’s skills and knowledge of the financial and share market, trading methods, investments and advice. You can even “copy” trades from another trader. If you choose to “copy”, you allocate a certain percentage of your funds to copy a chosen trader’s investments automatically from your social account.
Social trading relies on analyzing information generated by the users of the network. Essentially, you are basing your trade and investment decisions on data and analysis provided by the public, and not a broker. As social trading is a public forum of traders posting their every trade decision it provides real time analysis of market and individual trader performance. It also provides up-to-date financial news, market values and trends.
In most social trading platforms you are able to peruse a fellow traders portfolio to see how successful they are, how much they have made and what their niche is. Akin to Facebook users, if you like the person’s profile you are able to follow them. This means you are able to track their movements on the social trading network, and discover the secrets of their trading success. This is how newbies to the trading scene learn how to make smarter decisions and analyze the market quickly and with less research then is needed utilizing more traditional methods.
In this day and age, we seem to be socially connected online in one way or another at all times. It is therefore unsurprising that with this generation’s love for online social media, social trading is becoming a popular method for traders to network and share information. People like to feel connected to community and like-minded people who share their interests and hobbies.
Social trading allows new investors to learn and model their decisions on investors who have much more experience and knowledge of Binary Options trading. This helps those people who are new to the scene of Binary Options trading to learn quickly and decreases the risk of loosing all their funds before they have learnt the ins and outs of trading. In this way it makes a lot of sense to combine social networking and Binary Options trading.
Social trading sites also supplement the information provided by financial news sources. By utilizing both these outlets you will be armed with all the knowledge you need to dominate the Binary Options trade market.
Some of the most popular social trading sites are ZuluTrade, eTaro, Ayaono and Tradeo. These sites offer a free demonstration of what services they offer, how to use their sites, and tools and instruction manuals describing the ins and outs of investing. This free demonstration is a great place to start for beginners in the Binary Options trading and social trading sites. They can even include a “practice pot”, for example $10,000, so you can practice investing. In this way you do not risk any of your own money until you are confident in what you are doing.
Most social trading sites also have strict rules and regulations to ensure the validity of their customers, and no spammers, scammers or pumpers can bombard the site.
Social trading is a way to learn from the best and copy their decisions to make the most of Binary Options trading. Social trading uses the human instinct for collaboration and community to allow like-minded people to network and assist each other.