Social
trading with Forex or binary options is the practice of copying the trades of
other traders that you’ve found through an online social trading community. You
can also use the trading community as your own personal network and as an area
to urge ideas and discuss your own strategies. With social Forex trading, there
are many different ways to communicate with other traders, including forums,
profiles, blogs, signal services, brokers and specific platforms that provide
copying abilities. All these forms of social communication help traders of all
levels interact with each other and improve their trading strategies.
Social
Forex trading offers a singular advantage for brand fresh or nervous traders –
it allows them to follow others and to ‘hold hands’ with a experienced trader
during the trading process. Social trading also offers distinct advantages for
knowledgeable traders, because it allows them to become trade leaders and to
profit by recruiting more and more followers. Whether you’re a newbie or an
expert, it’s a good idea to understand the different social offerings available
so that you can find a comfortable place in this new and exciting world.
Here are a
few of the more popular types of social trading platforms:
Signals or Tips
If you are
just starting out in social trading, look for signals and tips to show you the
way. These can come from simple sources such as a trader sentiment indicator
posted on broker’s site or they can emanate from very sophisticated computer
generated systems. You won’t encounter any kind of interaction from this sort
of social trading and you'll not fully understand what you’re seeing because
you can’t ask the trade leader. But, with signals or tips you'll get the direct
market position to follow if you so desire.
Best Signal Provider Platform:
Best Signal Provider Platform:
Copytrading is simply that—it is that the act of copying the trades of other
traders. There are copy trading platforms that allow you to repeat another
trader and echo his success. You choose a trader from the leader board where
every trade that person makes is posted and this is entered into your account.
Restrictive controls monitor your account so you aren’t following someone
blindly but the total responsibility is on you. Copying is a simple thanks to
trade without the fear of creating your own choices because all you've got to
try to to is select the trader that appears the simplest to you and copy it.
Forums and
profiles are very important for you if you want to become a serious social
trader and they can be the fun part of social trading. Forums allow you to talk
to other traders while profiles help you get to know who they are. The best
platforms (IQ Option & Olymp Trade) will provide full profiles with biographical information, details
about trading style as well as a tally of open and closed trades.
Most
brokers (IQ Option & Olymp Trade) offer forums for account holders and oftentimes, you can enter the
discussion rooms of more public forums. A good forum will have hundreds if not
thousands of active users and you can join the threads of your choice such as
those dedicated to strategy, tools, tips and forecasts as well as many others.
Technically
speaking, auto bot trading isn’t really social trading, because it eliminates
the social aspect of the trade. Auto-bots are robots that are set to execute
trades when a certain strategy or pattern is triggered. While social trading
requires human traders to execute the trades, auto trading does not require
human monitoring at all. The system generates a signal and then automatically
executes it into your account. There are some pretty basic auto systems but
there are also some (MT2 Trading) fairly advanced versions that can interface with your
computer and account seamlessly. The advantage of auto-bots is that you don’t
have to worry about human error. The disadvantage, of course, is that you lose
the human monitoring, so that trades are executed even when the lead trader (or
programmer) may have wanted to override the suggestion.
When
choosing a social trading platform, always search for one with strict account
controls. These may include the amount you make on each trade, the total amount
of loss allowed for each followed trader, the amount of time you follow the
trader and which assets you will follow. As with any platform, the amount of
control will vary from broker to broker and platform to platform but the more
controls available, the better you will be able to manage your money and this
is the most important aspect of trading for both beginners and experienced
traders.
Hello Trader, My name is Ankush. On the blog "AM Trading Tips" contains Indicators and Trading Systems for Forex and Binary options. With a variety of trading (Forex and Binary indicators,trading strategies for different trading styles,and also Expert Advisors) that can be absolutely free
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