trade publicly so people can see your trading.
This investment model allows you to follow and copy the strategies of traders who do it well. One of the trader’s goals is to do well enough to be able to use third party money to trade and become an investment manager.
In short, social trading are managers (people who trade) who teach their operations. They have a showcase where everyone can see what they do. It is public. This platform unites these two figures: that of the manager who operates and that of the person who wants to invest in that product. Other advantages of social trading is that it allows opinions to be shared among all the members of the platform: managers, investors, followers… it works like a social network.
Constant profitable investments
In order to understand how to make a profitable and constant investment that has regular benefits, we can analyze it from the figure of the follower.
The follower is the person who copies; or because he doesn’t have time, because he doesn’t have experience or because he wants to learn from the operator.
Social trading is the meeting point between the top trader and the follower. The top trader can trade and, at the same time, follow another top trader. But as a top trader, you must have your own operation to get profitability and be attractive.
Control your risks
The mistake helps you control emotions. You cannot follow a person blindly. Nor, even if a third person moves your money, you cannot pretend to completely disassociate yourself from the operation.
In this world, whether you are the one who operates, the one who buys and sells or the one who follows the one who buys and sells, you must be minimally alert to control the positions and behavior of these people; to avoid any reckless movement that leaves your account at zero.
Everyone has a different view of risk. You should observe how the trader you follow operates and what kind of products he invests in.
Diversify the investment
You must diversify in your investment, not focus on a single product. You have to diversify in markets and countries. Because when one thing goes up it may be that the other goes down, and then you can say; I think this is not working very well and I prefer to close my position and go to another divergent market. This way you can curb a little the latent loss of the other market.
There is no crystal ball, no one will tell you where to enter or where to exit, but today you have the power of information at your fingertips, but you must know how to filter this information. You cannot enter the market blindly.
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Professor of Social Trading at the Download Trading Platforms school