Trading has become more and more a part of our daily activities, and has occupied a niche that can both be a source of enjoyment just for the sheer challenge it presents, or has become a major source of income to augment financial needs. And it is these needs that have brought people of same interests together, in this case the interest in trading, to be connected with likeminded individuals. At this point, social trading is born and it’s one of the things you can do with the eToro. If you’re a newbie and looking for a how to use eToro app guide then you might want to consider checking out Wikitoro which offers a lot of tips and guides about this brokerage.
So, What is Social Trading?
At this period of human history, almost everyone is connected socially; either by being physically present (it’s very easy to travel these days!) or thru online presence. As more floor traders realize that brokers have now migrated to the digital platform, so has their focus shifted to online trading.The same connection they feel interacting on the trading floor can be now be recreated online.
Social Trading is about accessibility to the financial markets, where retail traders and investors create one network and share trade-related views in real time. Strategies, the latest trends and trading advice are easily exchanged through social trading. This, along with socializing, strengthens their collective wisdom and is united as one.
Profits from the Social Trading Network
Yes, it is possible to make money from socializing with the members of your trading network. You’re probably spending more time in social media sites than you used to, so why not cash in on your efforts and time spent on these sites? Information sharing is very much the base line in social trading, you can profit from this by analyzing the performances of fellow traders and maybe you can apply it on your next trade.
Education is one area where social trading thrive. You can share knowledge and positive experiences that can encourage novice traders to try out Forex trading. By tapping into your social trading network, you can have additional access to a wealth of revenue, perhaps by selling a perfected strategy on currency trading? That is one way of monetizing, hence, profits.
Social Trading At a Glance
Using Google Trends, here is a comparative look at how social trading compares with trading as an individual entity. From the graph, we can see that social trading (in blue) outperforms individual trading, clearly indicating that traders are more interested to trade socially rather than as a separate entity. “Separate” is used here loosely to refer to as being disconnected or as not in touched with other traders socially.
Notice that interest on social trading has dramatically increased from the year 2006, just when the online trading world is a booming industry. There is a pronounced fluctuation as the years go by, as can be attributed to traders’ waning interest as the industry makes adjustments on how financial services can be better, transactions safer and trading platforms reinventing themselves as reputable brokers.
Under Related Searches, interest for social forex trading has reached Breakout levels, which is defined as growth greater than 5000%. This only shows that interest for Forex over the social trading network is increasing at a break-neck speed, which may still break barriers in the future. As it is, social trading is holding on its own with rising interest on it, as well. To be sure that you will be trading with a reputable service provider, you may consult the list of CySEC or FCA regulated brokers.
The old school definition of being ‘social’ is to get out more and mingle with people, or become a part of a bigger group but being there physically. In this day and age, the word has evolved and an entirely different meaning is now attached to it. The physicality has somehow been transcended, and now points to being “present” in the virtual world.
The human population is involved with a myriad of activities constituting a daily routine. To divide them simply into societal segments, there’s the younger population preoccupied with school. For those that make up the other older half, there’s work. Of course, trading gets thrown in the mix somewhere.
With the Forex market considered as the most volatile in terms of price movement and trade volume, it’s no surprise that many prefer trading currency pairs compared to any other assets. It is through social trading that traders of diverse backgrounds come together to discuss their years of experience and research spent on trading. By engaging in intelligent conversations with them, trading strategies can be vastly improved. Or you can monetize what you learned through eBooks or video tutorials which can equally increase other traders’ potential for profits.