Correctly predicting the price movements of the foreign currency, stocks or commodities markets is not easy at all, however especially against the backdrop of current market volatility, money making opportunities through trading online keep emerging and make the field even more appealing, especially for novices and people with little or no past experience in trading.
A trend that has being gradually growing and becoming mainstream is that of the so called social or copy trading networks, which emerged thanks to innovative technologies and are much more than mere chatting venues for the exchange of views. Through such networks that are currently available, the concept of peer to peer is elevated to new heights and a person can simply open an account, choose which traders to follow and trade through their decisions without further effort or ado.
So is the establishment of social trading and copy trading capabilities a panacea for all traders, a bulletproof way to success? It sure is a strong candidate, and it is very convenient for new traders and potentially very lucrative for all traders, new and old, big and small, alike. Let us briefly examine why:
If you are totally new to the world of trading and you don’t have the time, nor the knowledge to train yourself before you start trading but still want a piece of the action, then trading through a social trading network is exactly what you are looking for. You simply need to carefully select which successful traders you will be following and once you identify and verify their success rates, you can then have all their trades copied in your own account and make money as they do.
From then on, you have two possible routes to go down on. Observing the trades of the traders you follow and interacting with them in real time as they trade is perhaps one of the most interesting, enlightening, fast and effective ways to acquire hands-on experience and knowledge on all trading issues. You can use this opportunity to train yourself, to learn the secrets, the fundamentals and the winning strategies and in time you will be in the position to call your own shots. In fact, you will be able to become a successful trader, a signal provider, a guru, a person that others follow, instead of the one that follows others.
But even if you don’t wish to put in the effort and time required to move beyond the copying others stage of trading, you stand a lot to gain simply by selecting the right people to follow. Besides the obvious point that if you follow the right people and they trade successfully then their winnings will be reflected in your pocket as well, you can also capitalize on the fact that you are copying the correct traders in yet another way. Most social and copy trading networks around make it possible to follow someone who is simply following others and does not necessarily actively trades him/herself. In plain words, you can make money because others will choose to follow you to benefit from the right choices you have made about who to copy!
But social trading is obviously not only for the lesser engaged or least active traders. For the networks to function they presuppose the participation of the real pros, or at least traders that can boast a long track record of success. If you are one of those, or plan to become one, then jumping on the bandwagon of social trading brings clear advantages for you as well, along with the obvious financial gains.
If you are already making money through trading online, then joining a social trading network and allowing other traders to follow you and mimic your trades will bring you not only monetary benefits, according to the number of followers you secure or the amounts they trade, but also offer you recognition, acknowledgment, visibility and the rewarding feeling that you contribute to the accumulation of collective knowledge and know-how that enables the masses to gain access to the riches and wonders of the trading world.
George Milios is the founder of onlineforextrading.net, the binary options and forex news portal which is dedicated to providing you with all the information you need to successfully trade.