consists of operating publicly so that people can see your operations. 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 it well enough to be able to use third-party money to trade and become an investment manager.
To be clear, social trading is traders (people who trade) who show their operations. They have a showcase where everyone can see what they are doing. It’s public. This platform unites these two figures: that of the trader who operates and that of the person who wants to invest in that product. Another advantage of social trading is that it allows you to share opinions among all the members of the platform: managers, investors, followers… It works as a social media 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; either because he does not have time, he has no experience, or because he wants to learn from the trader.
Social trading is the point of union between the top trader and the follower. The top trader can trade and follow other top traders at the same time. But as a top trader, you must have your own operations to obtain profitability and be attractive.
Control your risks
Error helps you control emotions. You can’t follow a person blindly. Nor, even if a third person moves your money, you can 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 the account at zero.
Each person has a different view of risk. You must observe how the trader you follow operates and what types of products it invests in.
You must diversify in your investment, not focus on a single product. We must diversify in markets and countries. Because when one thing rises it may be that the other falls, 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. So you can slow down the latent loss of the other market a little.
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. The only thing this information should know is how to filter. You cannot enter the market blindly.
Do you want to know more about social trading? Don’t miss the whole class to Social Trading Introduction.
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Social Trading Teacher of Download Trading Platforms school.