Read Time:2 Minute, 1 Second

Social trading is fast becoming a provocative alternative to conventional Forex trading that can radically change the way people are used to it. Based on web communication, social trading gives traders with small accounts a chance to observe the actions of professional market players and copy their trading decisions. All you need to do is subscribe to this or that trader, whose experience and skills you trust.

Benefits of copy trading

If you are in doubt whether it is worth trying yourself in social Forex trading, here are some good reasons why it is worth at least experimenting with it:

  • Social trading saves you the time you might spend doing market research as you have the opportunity to benefit from the wisdom of the majority. Large investors hire hundreds of analysts to research the market for effective trading opportunities.
  • Social trading helps to save money, which in the future you can use to increase your investments in the foreign exchange market.
  • Social trading provides inexpensive trading and educational practice in investing at the same time, which can be translated into the future to build your own trading career.

Principles of using copy-trading

Social Forex trading is completely dependent on web technology, which is developed and provided to traders for use by providers of such services. And therefore, when choosing a platform, you must also adhere to 4 principles in retail trade in the currency market:

  1. Set limits in which you feel as comfortable as possible.
  2. Watch out for guru traders – or leading traders – whose trading strategies are similar to yours. The best traders usually have 1000 or more followers.
  3. Focus on a few currencies and learn as much about them as possible to understand what is happening to them in the market.
  4. Study the profits and losses of your guru trader. It is best to study his activity in 12 months in order to get a complete picture of his activity.
  5. Remember that you are dependent on the signal provider and the trader you choose to follow. For social Forex trading to be successful, you must be careful about the lot sizes you will be trading with, as well as the number you will need to adjust as you trade.
  6. Don’t forget to use demo accounts and live streams of trades (provided by social trading providers) to help you get an overview of social Forex trading without risking your fixed assets.

Happy
Happy
0 %
Sad
Sad
0 %
Excited
Excited
0 %
Sleepy
Sleepy
0 %
Angry
Angry
0 %
Surprise
Surprise
0 %

Average Rating

5 Star
0%
4 Star
0%
3 Star
0%
2 Star
0%
1 Star
0%

Leave a Reply

Your email address will not be published. Required fields are marked *

Введите текст, показанный ниже:

This site uses Akismet to reduce spam. Learn how your comment data is processed.

How to start investing: 8 steps for a beginner investor Previous post How to start investing: 8 steps for a beginner investor
The road to financial independence Next post The road to financial independence