The Social Trading is increasingly present on brokers cfd.Is this a good or a bad idea? In this article we will give you our opinion on this trading method that is becoming increasingly important in the world.
Etoro is the first to have had the idea to get started in social trading, the broker clearly stands out from its competitors in this field, Etoro to bet everything on Social and must say that it works pretty well because it draws mass beginners.
The Social Trading, what is it?
Firstly it is important to remember that the social trading requires no experience because it allows you to simply copy the positions taken by other traders . Of the brokers offering this trading mode, you have access to the list of best traders and thus you can copy all of these trades.
This will allow you therefore to access capital markets without any knowledge and rest on traders who win regularly in binary options majesticoptions.com.
The Advantages
No knowledge required
Ability to follow the best traders free
Enter the financial markets in one click
Community exchanges, sharing ...
For a beginner, the share trading is an advantage inasmuch as this will allow it to enter the financial markets quickly without knowing how the stock market and start to generate profits if the selected trader trades are winners. Clearly, it's simple, and fast. The social side for exchanging with other traders is also an important asset and can be rich in teaching.
The Disadvantages
You do not have to learn
You can still lose trades
You are dependent on your trader
You might get bored
If you lose, you probably would never in financial markets.
Here are some disadvantages of this trading mode. By systematically copying the trades you are not obliged to learn a lot about the exciting world of trading. Unfortunately, your trader can pass a bad week and saw that you follow his trades, you will pass a bad also ...
You are completely dependent on others , if your favorite trader takes no position for a while, you do not traderez. Ultimately, this will risk boring you because in the end, you only copy! Furthermore, if your first trades are losing, you might never come back in the financial markets in disgust while by yourself, you could have made different choices and win your trades. You risk to miss the World trading and this is a shame.
Good or bad idea?
Both ... Social trading is to be a plus but you must not only trader in this way . Social trading can bring you a lot if you have doubts before taking a position, for example. The community can tell you what she thinks you can read the opinions of others and this will strengthen you in your position or vice versa, it also encourages you to réfélchir. This can be a great way to learn from others, to learn a different way to trade.
Basically, it's how you use social trading which will be the most important element. The trading is not a game, it does not exempt you to train you to learn and understand financial markets.