11 Oct | Social Trading Can Help Improve Your Trading Strategy
If you’re a relatively new forex investor then you’ll know exactly how hard it can be to predict trends in the markets. Now it is true that people can turn a profit with little to no knowledge but there’s only so far this can take you and it is an incredibly high risk strategy; especially if you’re trading with large sums of money on the margin.
For this reason, you should educate yourself about the markets and try and learn the ‘tricks of the trade’. Social trading or social forex is a great way to do this no matter what your experience level, here’s why.
What is Social Forex?
Social forex can essentially be considered as an online forex forum. Here you can meet other new traders as well as experienced traders who can give you hints and tips on the forex world.
You can establish whatever type of online persona you like on forex forums. You can either simply sit back and read the threads or actively participate; it is completely up to you.
If you create a profile on somewhere like Alpari’s TraderConnect then you can publish your trading activity so that other members can view, like, copy or comment on your trades and vice versa.
What can it do for New Traders?
So, if you’re a new trader, the benefits of social forex are almost infinite. Brand new traders and people who haven’t traded before can learn a vast amount of information in a very short space of time. This will allow them to adopt their trading strategy based on their increased knowledge of how the markets operate and relax.
On a more basic (and generally unadvised) level, however, many people use social forex to simply copy the trades of more experienced investors. Although people do profit from this strategy, it is ill-advised because you will be unsure of the risks they are taking. By directly copying somebody else’s strategy, you’re essentially giving your money to somebody else to invest and, due to the risks associated with forex, this is incredibly unwise as you could end up losing a substantial sum of money.
What can it do for Experienced Traders?
Social forex is a great tool for experienced traders as well as new traders. Social forex allows experienced traders to analyse their performances with charts and graphs. This is good if you’re like reflecting on your trades and analysing what went well or badly on an individual basis.
To conclude, social forex is good for new and experienced traders alike. By picking up on hints and tips offered by other traders you can change and adapt your trading strategy for the better. So, whether you simply want to follow the trades of other investors, learn for yourself or analyse your own trends then social forex and forex forums can help you. Give them a go today and see if they can help you turn even more of a profit.