Engaging in group activities have a set of advantages compared to single independent action, whatever it be like a stage performance, decision-making or business. Single performance will frighten those with stage fear more than getting comfortable in a group performance. Indecisive people tend to get stronger and less confused if they are supported by the likes of individuals with the same line of action. Taking a decision singly and sharing and discussing it with one or more extra persons have significant differences in the decision and its impact.
While trading is associated with risks and uncertainties, trading in group imparts a higher level of security and tactical improvements in a trader. This resulted in the rise of the approach called social trading, wherein the trader gets the chance to observe fellow traders and market experts and get a positive influence on his activities of investing in market securities and assets.
What are the types of social trading?
Mirror trading: The trader can duplicate or mirror one or more selected trading strategy practiced by the fellow trader in the same platform into his trading account. It is a personal choice on selecting the trader whose strategies invoke equal interest in the other trader. The signals sent by the chosen strategy are automatically mirrored to the second trader too and the risks are diversified on various features.
Copy trading: A trader investing in social trading is able to copy the trading positions of any other selected fellow investor automatically who is trading in the same social platform. All the attributes of the investor are linked to the account of the copying trader such as opening and closing positions, stop loss and take profit and holding in a fixed proportion of the fund status.
What are the advantages facilitated by social trading?
You get the opportunity as you look at this site to watch and learn from the decision-making strategies and quick acts by experts and experienced investors who are far more successful than you have been.
Working as trading teams incorporate dilution of risks and multiplying on profits with better strategies arriving from multiple investors.
The sharing platform allows free flow of useful trading information between all the investors and automatic trading platforms selected within the social group.
There is a better comparison of financial investment portfolios in the trading market with open analysis of data and results brought about by the changing techniques.
As anyone would agree, learning in a group yields quicker progress from beginner to an experienced investor in constant interaction with competent traders.