If you are a beginner in the social trading world, then you are in the right place. This article is all about the basics and is here to help make money.
If we compare social media to social trading, we will find many similarities. With the latter, however, people are sharing more about their trades and analyzing the market together.
In order to find out more about the platforms and their features, which are the best for social trading, you can visit https://investingoal.com/. It’s a great resource with multiple guides for beginners.
As a beginner, you should definitely spend some time getting familiar with the market. One great aspect of social trading is the connection you could create with others. You can find a mentor and analyze how they are trading.
The fact that the platforms are so transparent will surely help you while trying to learn more about the market. You will be able to see the best performers and those who are failing to make a profit. In this way, you could study good practices and avoid the mistakes of the others.
Copy the Professionals
Another aspect is that you can get better at trading by copying those who are successful. Once you set up your account this way, they will get a small payment. Another big plus of this strategy is that you don’t really need to observe your account all the time. That is because the top performer will do transactions, and yours will copy them automatically. The values that the 2 accounts invest may differ, but the percentage will be the same – a top performer you are copying invests 3% in something, and 3% of your capital is invested in it.
A beneficial aspect of social trading is the social network. There you will be able to seek answers, analyze the market with others, and learn from them. It is a good idea to follow a responsible trader who has a great track record and a similar investment strategy.
Your best bet is to keep on observing the top performers and seeking more information about the available investment options. Remember that it is up to you who you copy and can change that at any time.
Be Realistic with What You Expect
A big issue comes from the fact that multiple beginner traders don’t set realistic goals. This then leads to disappointment. Maybe this is because social trading is said to be able to provide quick profits. You should never forget that there is still a risk – you can lose money just as fast. We would advise you to never blindly copy another person’s trade without thinking over the risk.
To minimize the losses, you should still do your research and not just sit back and watch as another is controlling your account. An indicative measure would be an ROI of over 400%. Such a number will show you that this particular trader is a risk-taker. First, research them, their comments, and history. If you like what you see after that, you can follow them. You should always keep an eye on the trades which someone else is doing since you never know what they are going through or thinking. Many external factors could influence the outcome of a transaction. This is why a quick analysis of the market is required before starting to copy or trade.
Time to Take it One Step Further
If you are not a fan of copying other top performers in the trading scene, you could always do everything yourself. If you later become successful and others notice your good performance, you might be able to start making some money by copying you. Then you will have two streams of income – from the successful trades and from the beginner traders. Usually, you will be paid based on the number of followers of the number of copying accounts.
Social trading gives you an awesome opportunity to keep developing your skills, all while earning. If you manage to become a good trader, you will also be able to share your knowledge and get paid even more.