Twitter, MySpace, Pinterest, Facebook, Reddit, LinkedIn…
It is highly improbable you do not hold an account with at some of these social networks. Actually, it would not be unheard off if some among us use all of the above mentioned and then some.
While many frown upon social networks in terms of the time spent on them and info exchanged, a curious by-product was born – social trading.
Social trading is an upgrade of the already existing online trading and, the way things are going, it is here to stay. It could be said that social trading did for the world of finances what self-published e-books did for struggling writers.
After all, the logic behind it is – two heads are better than one. Or, in the case of social trading, millions of heads are better than one.
What happens is that people share their ideas, experiences and knowledge which can be a powerful thing. And, it is enough to take a closer look to be overwhelmed by some of the results and profits made by using social trading platforms.
After all, this became for many a way out of the stifling corporate world or just a fun way to add more money to their bank account.
How to Benefit from Social Trading?
Imagine you wish to improve your circumstances by earning more money. As is the case with most of us, Google is our best friend and it told you that binary trading or Forex might be a great opportunity.
Instead of embarking on the journey of trading binaries on your own, you get to have help from countless people around the world.
They have “been there” and “have done that” so why not benefit from them?
Especially when it comes to avoiding some typical rookie mistakes.
In using social trading, prospective binary options traders get to utilise the so-called crowd wisdom instead of taking a solitary trip and trying to puzzle things out on their own.
By using various community-based tools, traders get to use valuable information and make wiser trading decisions and investment choices.
In most cases, social trading platforms give users uninterrupted access to monitor other traders’ portfolio, gauge their performance, learn from their trading strategy and make overall better trading decisions.
How Does Social Trading Actually Work?
Built on the premise of democracy and depending on the specific social network, budding traders can join in without paying an arm and a leg for it and follow the rules.
The traditional investment was conducted behind the closed doors and investors were paying considerable amounts to have experts and investment funds managing their finances.
Of course, this is still done.
Yet, the introduction of social trading brought in the so-called piggy-back model where hopeful traders monitor, learn and copy from those with far more experience.
For that hopeful trader from the second paragraph who wanted to trade binary options on some of the available platforms, that usually means the incessant live stream where it is possible to see who is making and who is losing money.
Naturally, this is all done in real time so users get relevant data.
Of course, social trading is not fool-proof and there are risks involved as with any financial investment.
Instead, what actually happened with the appearance of social trading is the free-flow of otherwise exclusive information.
It opened the doors to people from all walks of life who now have a chance to participate in this novel approach to trading and effectively turning an otherwise lonely activity into a social and fun one.