Trading the capital markets is no easy task. You need to be knowledgeable, follow the news, and keep abreast of any information that will alter the trajectory of a Forex pair or Index. Experienced traders have been through several market environments where markets are driven by fear and greed. One of the best ways to climb the investor learning curve is to ask questions and gain experience from others who have more experience. To enhance your knowledge of the capital markets, and expose yourself to other views, you can engage in social trading.
Is Social Trading Like Social Networking?
Social trading is similar to social networking. Instead of posting pictures with friends and making comments about other people’s activities, you engage in discussions about trading the capital markets. In a social trading environment, investors will interact with one another and describe trading ideas. You will discuss the performance of specific trading strategies as well as brainstorm with other traders, focusing on market scenarios that are taking place in real-time. The goal is to leverage other traders’ knowledge and learn from a social trading environment. This environment can help you with some of the key pitfalls that novice traders often face, including battling the emotional aspect of trading the capital markets. To engage in social trading, you can use the FX Autotrade platform provided by Rakuten Securities Australia.
What is the FX Autotrade Platform?
Rakuten Securities Australia provides its clients access to the FX Autotrade platform. This is an online social and copy-trading platform. FX Autotrade offers investors access to a social trading community where ideas can be shared between investors. What are the Benefits of Social Trading?
- Access to reliable information
- Quickly climbing the learning curve
- Generating profits while learning how to trade
- Building a social trading network
- Learning what is important
- Learning how to read charts
One of the benefits of using a social trading network is you will reduce the need to search for reliable trading data. Instead of reading dozens of articles to attempt to find the information you need to enter a trade or manage your risk, you can rely on your social trading network to help accumulate this data. A supportive group will help you climb the learning curve much faster than attempting to learn completely on your own. While there is a plethora of educational information available, learning how to trade is difficult and it is much easier to lean from others who can point you in the right direction. Usually, when you begin a craft, it’s very difficult to make money. Most of the time, you are paying someone to teach you, like when you take classes in school. One of the benefits of a social trading environment is that you can learn while you earn, taking cues from experienced traders while learning how to implement trading strategies. Social trading platforms help you build a network of trading professional that are interested in a common goal. For example on FX Autotrade, offered by Rakuten Securities Australia, you can interact with other investors and share data while collaborating on trading strategies. A social trading network will provide you with pertinent information. There is so much information available it’s hard to know, as novice traders, what is helpful and what could be harmful. When economic releases report and when monetary policy decisions are released, a social trading network will discuss what it means and how you can profit. It will also help you avoid stopping out of positions when there is a knee jerk reaction to a report. Chart analysis is an important part of trading. It can take years to learn what is important and the different studies that will help you make money. Deciphering the difference between trend following, momentum and mean reversion is a key part of the investing process. A social trading group will discuss different chart patterns and studies and provide you with key information that will help you learn when to enter a trade and when to exit. There will likely be detailed discussions about risk management and when to stop out of a trade or abandon a strategy.
How is Social Trading different From Copy Trading?
Copy trading is exactly what it sounds like. You are copying the trades of another trader. This allows you to benefit from another trader’s successful trades. If that trader has a robust track record, you might be able to follow what they are doing and why they are transacting. Generally, there is little interaction between the trader you are copying and a larger group community where the trader describes what he is doing and why he is doing it. This means that while you can take advantage of good trades that you place when you are copying another trader, it does not mean that you will learn how to trade on your own.
The Bottom Line Engaging in social trading will provide you with pertinent information that will help you learn more about trading and the different markets that are available to generate trades. You will benefit from the support of a social network, which is similar to the network of friends you engage with on social networking platforms. Several benefits include the ability to access reliable Information, quickly climbing the learning curve, and building a social trading network. You can also learn how to trade while generating profits and avoid making some of the common mistakes that plague novice traders. There are a plethora of good social trading platforms including FX Autotrade. Access to FX Autotrade is provided by Rakuten Securities Australia. You can use this state of the art platform to build a network of trading professionals who will help you increase your knowledge of the capital markets and discuss strategies with traders across the globe. Remember, social trading differs from copy trading. While one helps you develop a network of traders, the other allows you to copy the trades of a professional trader.