Ahh. Thank you. For some reason I was thinking of some social networking feature embedded into it lol.
I believe that social trading is a good way of observing the trading behaviour of other traders so that you can make use of it for your benefit. But if you don’t have any idea about what is happening in the market, would that be of any use?
Something like that would actually be a good idea, don’t you think
Definitely not. Without knowledge, a trader’s career is nothing more than gambling. I have faced the consequences of taking shortcuts with instaforex when I lost and could not recover easily. It took me more than a year to gain confidence to get back and trade again. I studied and made my trade with turnkeyforex. But this time, there was no gambling and I wanted to learn even when I went live. I never risked anything more than that could have got me in trouble later. I increased my investments slowly and the maximum that I have ever invested is $5000.
I think that’s okay because most traders know about copy trading and not social trading. At the same time, there are many traders who use these terms interchangeably but they are not the same. Social trading allows you to make trades on the basis of the information provided by other traders but copy trading binds your account with the account of another trader and if they win, you win, if they lose, you lose.
That’s very important! Not being able to spot a red flag means getting scammed. The more you learn, the more your capability of understanding the market and its possibilities get.
It’s not a bad idea to not take help from anyone. But what is wrong is depending on them completely and not doing anything on your own. This behavior can be really dangerous especially in the long run.
I have seen inexperienced traders face the issue of not being able to control their emotions while making rational trading decisions and entering into positions erratically just to lose more. I think social trading can be a potential antidote to this. This can mean that a cool-headed, savvy trader would make decisions on behalf of other traders.
With social trading, inexperienced traders would get a chance to put the blame of their failed trades on someone else and do nothing more. Even an experienced trader can fail or even a sudden downturn in the market can take everyone by surprise.
I suppose if you go on Facebook or Twitter and form like a trading group there - it would work kind of the same?
Yeah I can see how some people can confuse those two.
I have always been a trader who pays close attention to the market moves, analyzes each trade, and finds out why it took place. If I had I would have not been able to gain confidence and found out what works and what doesn’t. Even the broker I selected (Turnkey Forex) was a calculated choiceI won’t lie that I never thought of social trading. In fact, I gave it a try with XTB but frankly, it was difficult to entrust decision-making to a complete stranger and so I dropped the idea.
I’ve been a manual trader from the very beginning but once in a while employ automated programs and indicators to alert me of any potential trading opportunity that I would otherwise miss.
After 8 years dealing with social trading (etoro and Darwinex) I can state that finding a true trader is as difficult as being a true trader.
You know it’s all about devoting your time and energy in developing an automated system for yourself, rather than depend on signals from another trader.
I consistently tested, optimized, and developed my trading system. It was a slow process but definitely worth it. End of the day, I didn’t worry about being there to find or execute the trade.
Market conditions, volatility, and trend changes are few factors that I believe can’t guarantee success if you’re dependant on the ea’s. I mean how can you guarantee if your bot worked historically, it’ll work in the future too?
I’m trading to earn and if I have to spend money on hiring a programmer to help code a strategy?!? In fact, any changes or modification by him will again require me to shell out money. So, that’s a big no from me.
I don’t think social trading is beneficial, if you are dependent on other trading behaviour and strategies then how will you learn? So it is always better to learn on your own and make your own trading strategy.
@Jimmy I have actually lost hundreds of dollars with robots especially at times when the market was moving awkwardly slow or at times weirdly erratic.
Talk about greed control and I don’t think any technical indicator could decide when you have enough profit and it’s time to exit.
Club these 2 strategies together and see the difference it makes to your trading. This semi-automatic trading system that I started with turnkey forex has helped me mint money. Talk about identifying the trading opportunities and receive trade alerts with stop loss, entry price, and take profit while maintaining control of the trading account. I started obviously on a full manual mode with octafx to learn the intricacies of trading, but shifting my trading style has done me good.