Social Trading: What It Is And How It Works
In recent times, social trading has been gaining momentum among potential investors . It is an activity that mixes the classic investment in the financial markets with the concept of social networks. But what is it more specifically? How can this be done and what are its advantages or risks associated with it? Here’s everything you need to know on the subject https://www.abouttrading.pt
Social trading can be exploited by everyone , but it is clear that it has been thought above all for those traders who have no experience, do not know how the financial markets move but above all do not know how to interpret the signals. It therefore represents for them a sort of school in the field, a way to start investing even without specific knowledge of the subject , simply by replicating the moves of those who instead make online trading their main source of income.
How does it work
The functioning of social trading is very simple and completely automatic , so it does not require a lot of effort on the part of those who want to start doing it. First of all, the first step is to become part of a specific community , selecting one of the platforms that offer this service.
Then you have to choose the trader you want to follow among those who have made available the possibility to share their know-how and follow the investment moves made in real time. Just press the copy trader button : at that point the software will do the rest since it will replicate all the investments made by the trader you are following.
Obviously it is always possible to choose the amount to invest in such a way as not to take risks with your assets. You can follow multiple investors to study their moves, but select the copy trader mode for only one . Obviously with the possibility of being able to rectify your choice at any time, if you realize that another trader is more in line with your investment idea.
Like all activities that involve the investment of money, social trading also contains both advantages and risks. Among the most important positive aspects there is certainly the possibility of following the moves of those who have a great knowledge of the financial markets and know how to move in order to be able to make their own capital pay off. Obviously this solution can be particularly interesting both for those who have no knowledge of trading but still want to try to invest, and for those who, despite knowing the financial markets well, do not have time to devote to a constant update of their performance.