Social Traders use a
trading strategy in which an investor observes the behavior of their peers and
executes trades by copying and/or by mirroring them. It requires little
knowledge of the financial market but provides a lot of knowledge of how it
works.Social Trader CharacteristicsSocial trading, to put
it in simple terms, happens when investors look at what other people are doing,
compare strategies (if they have one) and follow them into trades either by the
usage of copy trading or mirror trading.Platforms which allow
social trading, provide their users with networking capabilities and data-feeds
of what users are doing which makes it possible to closely follow other
investors.There are basically two
different types of social trading.1. Copy
Trading: where one trader places the exact same trader as the other2. Mirror
trading: where one user will automatically execute every single trade that
another user is making, thus following each and every move he makesOther possibilities
include copying an entire portfolio and copying dividends (by withdrawing the
in exact same proportion).Social Trader Main
features: cooperation and information flowCooperative trading
happens as investors can form trading teams, share their due diligence, and
even pool their funds. There’s also an argument to be made regarding
transparency and information flow. Since everything is out
on the open, information is very real and can be freely exchanged.This makes the case for
users to be actively working together against the market, furthering increasing
their likelihood to profit. Experts are already call it a “non zero-sum game”.
Social Traders use a
trading strategy in which an investor observes the behavior of their peers and
executes trades by copying and/or by mirroring them. It requires little
knowledge of the financial market but provides a lot of knowledge of how it
works.Social Trader CharacteristicsSocial trading, to put
it in simple terms, happens when investors look at what other people are doing,
compare strategies (if they have one) and follow them into trades either by the
usage of copy trading or mirror trading.Platforms which allow
social trading, provide their users with networking capabilities and data-feeds
of what users are doing which makes it possible to closely follow other
investors.There are basically two
different types of social trading.1. Copy
Trading: where one trader places the exact same trader as the other2. Mirror
trading: where one user will automatically execute every single trade that
another user is making, thus following each and every move he makesOther possibilities
include copying an entire portfolio and copying dividends (by withdrawing the
in exact same proportion).Social Trader Main
features: cooperation and information flowCooperative trading
happens as investors can form trading teams, share their due diligence, and
even pool their funds. There’s also an argument to be made regarding
transparency and information flow. Since everything is out
on the open, information is very real and can be freely exchanged.This makes the case for
users to be actively working together against the market, furthering increasing
their likelihood to profit. Experts are already call it a “non zero-sum game”.
Social Traders use a
trading strategy in which an investor observes the behavior of their peers and
executes trades by copying and/or by mirroring them.
It requires little
knowledge of the financial market but provides a lot of knowledge of how it
works.
Social Trader Characteristics
Social trading, to put
it in simple terms, happens when investors look at what other people are doing,
compare strategies (if they have one) and follow them into trades either by the
usage of copy trading or mirror trading.
Platforms which allow
social trading, provide their users with networking capabilities and data-feeds
of what users are doing which makes it possible to closely follow other
investors.
There are basically two
different types of social trading.
1. Copy
Trading: where one trader places the exact same trader as the other
2. Mirror
trading: where one user will automatically execute every single trade that
another user is making, thus following each and every move he makes
Other possibilities
include copying an entire portfolio and copying dividends (by withdrawing the
in exact same proportion).
Social Trader Main
features: cooperation and information flow
Cooperative trading
happens as investors can form trading teams, share their due diligence, and
even pool their funds. There’s also an argument to be made regarding
transparency and information flow.
Since everything is out
on the open, information is very real and can be freely exchanged.
This makes the case for
users to be actively working together against the market, furthering increasing
their likelihood to profit. Experts are already call it a “non zero-sum game”.
