If you are new to trading the forex market or if you want to improve your trading skills, then you need to learn the basics of social trading. What exactly is this thing called social trading? It is pretty simple, if you think about it. Basically you use networks and platforms to trade.
Social trading network/site is like a social network for forex traders. Rather than seeing someone uploading their trades to the site with their details, you see instead what other traders are doing with their trades. In other words, the key feature of a social trading network is to be able to copy another trader's moves. As an experienced trader this is a great way to improve your own trades and therefore take your trading to the next level.
There are a number of ways that you can start copying other people's moves and make profits from them. These include being able to view their entire portfolio on your platform, being able to lock in a certain trade (so when it's done you don't have to fight to get out of it), being able to read a certain stock's price history and much more. In this article I will explain why it is so important to be able to do all these things on a platform such as social trading.
If you are new to social trading, one of the best ways that you can make money is to copy the moves of experienced traders. Why would you want to copy another trader's moves? Well, by copying another trader's moves, you make money faster. Experienced traders make money by being able to take their decisions and stick to them regardless of external factors. You basically do the same thing by following their decisions, which in the long run lead to you making money.
So how do you find traders who are successful using social trading? The first way that I would recommend is to look at trader forums. Forums are very valuable resources for social trading newbie's because they give you a chance to interact with successful traders. You can ask questions and learn a lot about how they go about their day-trading business. Another good way to find a trader is by looking at their profiles.
Traders with higher profiles will generally have the larger amounts of capital available to them. Therefore, they will usually have the most influence on the market and will therefore be more likely to copy what other successful traders are doing. This means that you should always try to stay away from the beginner and novice traders. It is always better to copy traders with lower amount of capital than the more experienced traders. However, keep in mind that you do not have to stick to what the professionals are doing. You can still find a way to make your trades look like the professionals are doing, but only if you apply some discretion.
One of the best tools that you can use when applying discretion to your trades is to look at your charts carefully and look for any obvious signs that a trader is trying to manipulate the price move. If you see a lot of false patterns on your charts, chances are this is a trader trying to manipulate the price move so he or she can have an advantage. You can tell if a trader is trying to manipulate the market by watching for certain patterns. Usually, these patterns will be circles, rectangles, and squares. Try to get an idea from your charts whether or not there are large volume changes on the social trading platforms that you are participating in.
One of the things that most new traders forget to do is to get involved in the community. Trading on social platforms like Twitter, LinkedIn, and Facebook is a great way for you to meet and network with other traders that have the same goals as you. Often times, this is where the beginner gets drawn into the market. If you become friendly with other traders, chances are you can trade off of their charts and find some great trades to make. Experienced traders often discuss their trades with others in the community, giving you even more chances of success.
Source : TradingGator
