In today’s contemporary society social media plays a pivotal role and dominates the lives of most people who connect to each other on social networks, or through the most traditional methods of mobile phones, texts and emails. Financial investment could not escape this dominant trend and it is also becoming social, thanks to the development of platforms which allow everyone to enjoy the benefits and advantages that social and copy trading have to offer. It is expected that the future of trading in general will be shaped largely by the growth of social trading in particular as its functionality is instrumental and allows all users of social trading networks to trade with the help, knowledge and collective wisdom of the more seasoned and experienced traders. If you are already trading online or thinking of starting to do so, then you stand to benefit hugely by learning all about social trading through our compact guide that follows below:
Socializing through Trading or copying that brings a profit and no punishment?
In the concise guide that follows our aim is to give you a brief overview of the basic concepts and notions pertaining to social and copy trading and introduce you to the wonders of the social aspect of trading. Being an advanced form and a potentially much more lucrative aspect of the broader social networking, social trading allows the free flow of information, expertise, insights, skills and trading decisions from one trader to another and acts as a solid bridge that diminishes the gap that has long existed between the novice and experienced traders.
Our guide collects and presents the basic, core concepts that you need to be aware of and is packed with useful links to more detailed and analytical content. Moreover, the guide takes a closer look at what we consider to be an effective and successful social trading platform and network to best illustrate how your own personal trading stands to benefit if you decide to go it social or trade socially and discusses some implications and future trends pertaining to social trading.
What Is Social Trading/ Copy Trading?
Copy trading is all about automation and the direct linking of one’s trading account and investment portfolio to those of another trader or other traders. The most important aspect of copy trading then lies in choosing the right traders to copy because once you decide to copy them your fate is tied to theirs. Since you chose to mimic one’s trading decisions, then you win when they win but also lose when they lose. Find out more about the wonders and prospects of copy trading here.
The evolution of social media and their establishment as a mainstream method of information sharing over the internet was what rendered the booming of social trading as a popular trend possible and feasible. Social trading is a broader term that encompasses multiple capabilities and it is primarily based on the interaction between traders, the generation of information and the exchange of it through a dedicated social trading network/platform. In a nutshell, social trading takes away the stress and burden off the shoulders of novice, newbie traders who can trade the markets without having to know or to learn how to perform complex analyses, but rely on their fellow traders to do it for them.
Social trading and copy trading are two similar terms and this is why they are often used interchangeably. However, in reality they are not identical and most views converge that copy trading is part of the broader notion of social trading or a practical, tangible way in which social trading is employed. To benefit the most from the added capabilities put at your disposal through social trading and copy trading it is best that you read our dedicated piece juxtaposing the two because when their similarities and differences become clear to you it will be easier to decide which of the two will best serve and fit and eventually improve your own trading experience and performance.
What can social trading do for me?
Through a series of dedicated articles and posts covering different aspects of the social trading phenomenon, we showcase how the social trading community is packed with benefits and opportunities for traders of all experience and skill levels. Read the ones that look the more interesting to you or better yet, read them all and acquire a complete perspective of the world of social trading:
Can you earn a living by taking advantage of the upsurge in social trading networks? Is their existence and the mimicking of other successful traders a guarantee for success and financial gains? These and other similar questions are raised when trying to analyze the increased penetration and appeal of social trading networks and the ease with which they make copy trading available to all traders. To learn all about the theory that underpins the appeal of social trading and to have some poorly understood realities further explained, read this very interesting piece.
One of the best attributes of social trading is that it can have a hugely beneficial impact on the personal development of each individual trader. In fact the range is so broad that you can enter the world of social trading completely ignorant and oblivious about trading and simply copy others like a school boy, or you can be inspired and encourage to use the wisdom of others to learn and educate yourself and end up having others copy your trading moves instead, which also makes the lucrative potential even greater. Get all the details through this insightful article.
Concerns raised by social trading
Wanting to portray a picture that is as truthful and realistic as possible we cannot claim that all is rosy in the world of social and copy trading. Instead, to best benefit from its advantages you should also learn to avoid or effectively handle the various risks, loopholes, dangers and threats that may arise, such as not being over exposed to the risks that a lead trader you choose to follow may be taking unnecessarily or deciding to eliminate a lead trader from your portfolio if they lose their edge and become unprofitable. Read the articles below to learn the whole truth and nothing but it:
This piece attempts to shed light on the question whether the establishment of social trading and copy trading capabilities is a panacea for all traders or better yet a bullet-proof way to success. Explaining why it sure is a strong candidate, since it is both very convenient for new traders and potentially very lucrative for all traders, new and old, big and small, alike the article points out that irrespective of all these, it is no magic wand nor the super cure for all ailments and it does require caution, since loopholes also exist and are better to be avoided.
Having established that copying the trades of other traders could be potentially very beneficial and lucrative, especially for a new trader and it could also be a didactic, valuable, learning experience, this article moves a step further in order to illustrate that if you want to stand a chance to really become a successful trader, simply copying from the best or even learning from them is not enough and it will not always do the trick. It highlights that dangers do lurk especially when it comes to choosing which trader to copy and points out that such a decision should not be based on their past performance or number of copiers alone.
Top Social Trading Networks and Platforms
A social trading network can be said to be any website or platform which has developed a dedicated venue and the mechanism necessary to enable traders to share their trading ideas and even their actual trades with other traders. The top and most effective of such networks are those that do not simply cater for the community networking aspect of social trading, but are also offering automated trading features and automatically mirroring the trading decisions of the traders of one’s choice in their own trading account at the click of a button. Mainly used in Forex trading, but also containing opportunities for the trading of other asset classes such as stocks, indices and commodities, resorting to such social trading networks and platforms can be particularly beneficial especially for the less seasoned traders. Read below to find out why here at binaryoptionswire.com we have singled out and have a preferred social trading network and how joining it can help make you a better and more well off trader.
eToro Case Study: Your Social Investment Network
Read this article to find out why the team here at binaryoptionswire.com believes that the eToro network is our venue of choice when it comes to social trading. This piece explores the possibilities and potential that is being opened up through joining eToro and focuses mostly on the revamped version of the eToro platform that was aired in November 2015. Read about the platform’s speed, ease of use and other innovative features and see for yourselves whether its aspiration to become a real game changer and revolutionize the industry as well as the way millions of traders manage their portfolios, is valid and well-founded.
This piece presents the compelling argument that copy trading and especially copy trading through eToro works well and could bring some cash your way because in many ways it is like having a managed investment account but without having to dish out the high fees typically associated with such a service, because the actual copying of the trades comes to you at no charge whatsoever. Find out more about the benefits of copy trading and more particularly how it does away with middlemen and fees and overcomes the problem of trading with the help of others whose interests do not always coincide with your own.
Your trading experience through the social trading network and platform of EToro, which is not a typical broker but a broker and a social trading services provider in one parcel, is also greatly enhanced thanks to the multiple of special trading tools that have been purposely developed and put at the disposal of all users. Find out what these tools are and how they can help you trade better and more successfully.
Living proof that copy trading can be equated to significant profits even for the average by-stander, is the real life story of Bob as he submitted it to our site. Read how he managed to meet with trading success and be intrigued and inspired by his example. “Profits are now usually a few hundreds per week, but I would have never imagined that an instant lottery and some effective copying would have changed my life so much!” – Bob Brown
Binary options Social trading – Copy Trading for Binary Options
The ability to emulate the trades of those who are more experienced, i.e. the notion of copy trading, has evolved greatly over the recent years in the online retail forex trading industry, bringing with it many benefits both for the copiers and those being copied. For the former an added important benefit is that they can enjoy a learning curve that is greatly shortened. Although not all forex brokers offer copy trading solutions, most of them do, will social trading as a broader concept (i.e. without the automated part of copy trading) is compatible with all individual trading platforms.
If you do want to take advantage of social trading then you can, irrespective of the forex broker or platform provider you are currently using, while in order to benefit from the automation that comes with copy trading then you may need to sign up with a specialized copy trading service provider or copy and paste trades into your account manually. Always check with your existing broker to know what applies in each case.
In the case of binary options trading, mainly because this is a newer field, automated copy trading solutions are not in abundance just yet although at the pace that things are moving it could well become reality soon. Irrespective however, social trading per se, in terms of the exchange of views and information and the harnessing of the wisdom, skills and expertise of other fellow traders can easily be and it actually is used in binary options trading as well.
One very popular manifestation of how the notion of social trading operates in the current binary options trading landscape is the popularity of the iFollow (previously known as SpotFollow), a tool that is integrated in the popular binary options platform provided by SpotOption which is used by a great number of brokers, acting mostly as white labels. This tool allows binary options traders to trace, monitor and copy the performance and trading decisions of other traders and benefit from them.
It is expected that sooner or later social and copy trading will become more widespread and mainstream in the field of binary options trading as well, so all interested binary options traders are encouraged to have their eyes and ears open to new and exciting developments in this regard.
So what to do until the future comes?
Traders show a strong preference for brokers who offer or facilitate social and copy trading services. As this trend consolidates in the retail forex world and in the trading of other investment types and instruments as well it is almost certain that the future of binary options trading will be marked and shaped by social and copy trading capabilities as well.
Besides, binary options trading is all about making trading accessible to all and it achieves this due to its simplicity as an instrument. With the extra help of social and copy trading it is anticipated that binary options trading will become even more appealing for the inexperienced, novice traders who are just embarking on their trading ventures.
However, until the social trading platforms and networks properly expand their offering to fully encompass and cater for the needs of binary options traders as well, binary options traders can still benefit from the wisdom generated by the knowledge and expertise of others, be they humans or clever automated programs, by subscribing to a credible and trusted binary options signals generating service and place their trades according to the signals they receive. Access our table of such trusted signals providers to find out more: