Social Trading — Is it the Future of Trading? Find out Now

Mohsin Jameel
Nov 6 · 6 min read

Have you always wanted to invest in the stock market? But jargon like forex, share trading, timing the market — give you the jitters? Worried that you may lose all your hard-earned currency on the stock market?

Well, then — social trading is just for you. If you’re hearing this term for the first time, you’re in luck! Here, in this definitive guide to social trading, Mohsin Jameel shares with you all that you need to know about this latest hit trend — what is it, benefits, risks, how to get started, and more.

The Rapid Growth of Social Trading

The world of finance is rapidly evolving. Strategies that work today fall out of favor tomorrow. One of the recent innovations to hit the share market is social trading. Market experts predict that 1 in 3 traders will rely on social trading and investment services by 2021. This analysis was made by Roubini Thought Lab, headed by the famous financial analyst, who predicted the 2008 global economic crisis.

One of the major reasons why stock market trading attracts millions of investors is that — it’s quite easy to get started. Investors do not have to invest large capital to get started with investing. Even an amount as low as $200 is enough to open a trading account.

While it’s easy to get started with stock trading, attaining success is another story. To strike big, investors need more than capital. They need reliable guidance and dedication. This is where social trading comes into the picture.

So, what exactly is Social Trading?

You would have guessed from the name that social trading has a social aspect to it. It functions similarly to an online social network. The one big difference is that unlike other social platforms where people share selfies, travel pictures, and other tidbits about themselves, in social trading, users share information about trading with others on the network.

Social trading is all about learning the ropes of the trade by observing and watching others. Users on the platform interact, watch trading strategies of other professionals, and get ideas on how to conduct successful trades from others.

This is a huge perk for newbie traders who are just getting started. By following the investment decisions of other skilled investors, you can copy (replicate) the trade for your success.

Think of it like this way — in other social media platforms like Instagram; you follow influencers because of you like their fashion style, recipes, or more. In social trading platforms, you identify successful traders, as their trading strategy, and start following them. You can now copy their trades to earn revenues.

What are the Benefits of Social Trading?

· Access to Reliable Trading Information

One of the big deterrents for investors getting started with online trading is not due to lack of information, but due to lack of access to reliable information. A simple Google search throws up hundreds of pages. Wading through this information overload can make beginner traders feel overwhelmed.

Social trading platforms help you cut through the clutter. Instead of reading tons of articles, you can get reliable, crisp, and extensive information from professional traders. Some platforms also offer the facility to interact with skilled traders one-on-one. You can ask your queries and get professional guidance or you can subscribe Mohsin Jameel youtube channel to get more information about Social Trading.

· Reduces the Learning Curve

Becoming a successful trader doesn’t happen overnight. There’s a steep learning curve. You have to do plenty of trial-and-fails before you can grasp the rules of the game. With social trading, the duration spent on becoming a professional is vastly reduced. It helps beginner investors become seasoned investors efficiently and quickly.

· Start Earning Quickly

Another huge perk of social trading is that it helps you learn from experienced investors. You understand how to navigate the trading market. The best part — you can start earning right during the learning phase. By copying the trades of successful traders, you can make quick revenues. As you can see, social trading allows you to start earning while you’re still learning.

· Network with a Community of Investors

Social trading platforms allow you to interact and connect with a growing community of like-minded investors. You can share information with them, learn from them, and collaborate with them on various ventures.

· No Setup Required

Just like social networks, all you have to do is sign up for an account on your preferred social trading platform. You can access all trading information on the network, from anywhere in the world, as long as you have a stable internet connection. You don’t have to spend on any extra infrastructure or hardware.

Where to start with Social Trading?

Several platforms help you get started. Social trading platforms can be broadly classified into:

· Traditional social trading platforms — These platforms deal with traditional trading commodities like stocks and forex

· Modern/crypto social trading platforms — As the name implies, these platforms also deal with crypto trading and more.

Top 4 popular social trading platforms:

· Spiking

It’s the first technology trading app and helps starter investors understand the nitty-gritty of the trading market. Right now, there are over 170,000 investors registered on the platform. You can even follow the big investors like Warren Buffet on Spiking. The app is available for both iOS and Android.

· eToro

This is another upcoming trading platform that is gaining huge popularity. Some of the highlights of this platform, including a demo account for users to practice their trading skills, copy trading, and newsfeed.

· TradingView

It’s available as a cloud-based social trading platform as well as a web-based application. It has an active forum where users can follow other traders, exchange ideas, interact, and consult.

· Moyo Trade

This is the simplest way to trade the forex market like a pro. Easy to get started, Moyo Trading offers a fun and efficient way to strike it big in the trading markets.

Are you ready for the Future of Trading?

Social trading makes it easy for beginners to get started with trading without the apprehensiveness of failures. While social trading doesn’t completely eradicate failure, it minimizes the rates of failure. Not just for beginners, social trading platforms also offer monetization opportunities for professionals, who can share their strategies with others for a cost.

Have you tried any social trading platform? How was your experience? Let us know in the comments below.

Mohsin Jameel is a Crypto Enthusiast apart from being an avid Tech Blogger. He is CEO of Bull Infotech, technology firm in Blockchain, ICO & Risk Management.

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