Social trading is one of the most common developments in the financial sector in recent times. Transferring trading strategies from professional traders to other traders, created a new system of sharing and profiting together. There are hundreds of reasons why you should join a social trading network, here are a few:
- It helps traders gain experience
Not even the most experienced trader can be good at every market. Traders tend to specialize in accordance with regions such as Europe, while others will tend to concentrate in a specific market, such as cryptocurrencies. Social trading holds the hands of traders who are new in areas, or assets, they wouldn’t have ventured into, successfully on their own
- It saves traders time
Social trading allows traders to copy a successful trader’s moves in real time. Each investment made by the trader is replicated proportionally to the followers. This means that traders who would have been spending time trading on their own, can now invest and let gurus trade for them
- Transparency is assured
Putting your money in someone else’s hands can be a scary experience, that can crack your nerves. Whether by hiring a trader, or a broker, you are giving your money to someone else, who will trade on your behalf. This demands the highest degree of trust, confidence and honesty, between the involved parties
Social trading depends a great deal on transparency, to inspire confidence in traders. A trader can see exactly how the professional social trader has been doing, and thus, make an informed decision. Some platforms also assign each trader a risk score, that can be used to get an idea of how the trader is doing.
Trading is a time-consuming venture, sometimes professional traders need to take time off. This shouldn’t mean that they have to stop trading, they can follow other successful traders, who are doing well through social trading.