Yasin Qureshi started his career as a trader and ended up running an investment bank. Before this he created NAGA, a social trading platform for social investing.
Qureshi gives you the main tips to get started in the world of social trading:
What is social trading?
Social trading is very similar to following someone on Twitter or Instagram, the only difference is that when someone writes something and you follow it, it has no effect on your life. If you follow someone on social trading it means that whatever he buys or sells, you buy or sell. In short, if he makes money, you make money, if he loses money, you lose money.
How does a social trading platform work?
The way a social trading platform works is quite simple: think of a website or Instagram, and think that when you use them they mentally pass your filter (you choose what it is or what you want to see or who you want to see). Something similar happens on social trading platforms since you can choose who you want to follow. So you select specific traders based on certain criteria.
You can choose traders near you that you can connect with in person. You can select traders as they have more benefits. You can select traders based on whether they have a lower or higher risk profile.
The way a social trading platform works is very simple: you click on the trader you want to follow, you determine the amount of money you invest in them, and from this moment when they are making money, you are making money with them. they.
What do I need to do social trading?
To do social trading, what you basically need is a mobile phone, a tablet or your computer and an internet connection. NAGA’s interface is very simple and easy to use.
The beauty of the Internet is that everything that in the past was only accessible to professional investors, investors with a lot of money, now reaches the whole world. And you can start to be part of a process in which finances are being democratized, being accessible to everyone.
How much money can I start social trading with?
If you want to start with social trading, what I would do is invest zero. Get started with virtual money at NAGA. Use a demo account, sign up, get acquainted with the platform and traders. Follow some people and see how much money they would have made you. And see if you could still sleep at night imagining it was real money. From there I would evolve. And there is no specific number.
Always make sure you do your homework and know that the amount you put in is something you can do without. Common sense and, of course, be aware that this has a risk because if the leader you are following loses money, you lose money.
How do I start?
To get started at NAGA with social trading there are a couple of things you should know:
- First things first: what risk are you willing to take? How much do you want to invest? Will I get nervous if I’m negative $10, $50, $1000…?
- The second: what are your goals, what do you want to achieve.
Other questions you should ask yourself are: What type of strategy do I want? How long do I want my money to be working there?
From there, you choose the traders you want to follow. Maybe you have preferences for a certain market, like currencies. Or maybe you’re more interested in technology stocks. Follow the trader without even copying him. Just follow it. You can do it with a simple “click”.
That way, every time he wins or loses money, you get an idea of whether you’re compatible. It’s a bit like dating someone, feeling comfortable with someone, and when you have this comfort, you can move in together.
Even if it’s for a short period, you try it and then you can go. And this is something very nice, since you don’t have to deposit money like in some funds where your money is blocked until you receive your pension. You can choose the ones you like, but you can also choose a portfolio with different traders. You can change them. You can give more money to those who do well in technology, you can reduce those who make foreign exchange. Like any other business, diversification, not putting all your eggs in one basket is key in social trading.
What criteria should I follow to choose a leader?
Choosing a trader is basically like being the chief investment officer in a large company choosing the best mutual funds or the right traders. And the main criteria here is not just earnings, but risk-adjusted earnings.
What does this mean?
If someone wins $100 but risks $1,000 it is a totally different thing than if they win $50 but only risk $5. Risk-adjusted profit should be your primary criteria. That said, there are many different ways on platforms to analyze a trader’s performance. There is volatility, how volatile it is, how much it fluctuates over time.
Do you have consistent earnings?
A person who earns 100% in a year on two trades is not as secure as someone who makes hundreds of small trades, for example.
Try to find out what is important to you. I would recommend starting with the basics and then expanding. Social trading platforms have a lot of indicators and ratios and numbers that let you see how well the profits are spread, how stable it is. You are in the driver’s seat, your goals and objectives determine where you want to go with your strategy.
Join to NAGA where you can learn from the best traders and get better returns. Copy the most profitable Traders and increase your profits.”
Yasin Qureshi Founder and CEO of The NAGA