Learn what Social Trading / Copy Trading is and how it is one of the best ways to trade for beginners. Find out which are the best social trading platforms.
Whether you are new to the world of trading or just interested in generating additional income from the online markets, social trading can help you. We know that social trading may not be every trader's preference. That's why we decided to create this guide along with an overview of the major social trading platforms in 2021.
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Social trading can best be described as expert copying of trades. This includes not only the copy trader, where only a single trade is copied, but also the mirror trade, where the less experienced trader copies the exact trading strategy than the more experienced trader.
Social trading is not a new concept; it has been around for quite some time. There are now countless trading platforms that make it easier for potential investments to trade with social networks or copies. It is important to note that social trading is not for everyone.
Social trading is great for beginners as it gives you insight into basic and complex strategies, helps you figure out the trading landscape, and get a feel for what works and what doesn't. Social trading can also be used to learn trading tactics and best practices for your platform. There is simply no better way to learn than from the experts.
Basically, you use other traders and investors and their decisions as a base model to make decisions about your own trading techniques or your investment strategy. You can either replicate an expert's strategy and make it your own, or use the expert techniques to inspire your own trading strategy.
Social trading isn't complicated at all. You just look at a trade made by user x and use this information to influence your own trading decision. Some people prefer the term copy trading instead.
Seeing how other traders have made decisions based on the markets will give you a better understanding of assets and prices. You may be wondering how do you get this insight? Social trading makes this possible by showing you where, when, how, and why a trader decided to implement something. This is very important and, if used correctly, will give you a competitive advantage.
Social Trading gives you perspective when it comes to the market. You can see how many people are buying or selling certain assets and which are consistently profitable or in decline.
It's important to note that research plays a huge role in certain trading decisions. Analysts and mathematicians spend weeks collecting and analyzing data. Choosing social trading means that you are following reliable traders and that your decisions are based on research and research that has already tested the trades.
Both new and seasoned traders must always make sure that they continue to learn and expand their knowledge, especially when it comes to trading markets. For those traders interested in the cryptocurrency market, learning is especially important as the cryptocurrency market is extremely volatile and changes from day to day.
As we now know, social trading is the process of using a platform where the application or website allows you to copy the trades of experts. The process of social trading and copy trading is different on each platform. Also note that not all platforms have this feature. All trading platforms have their own characteristics and distinctions, and some even offer bonuses and incentives.