Forex Social Trading: The Good and the Bad

Forex Social Trading: The Good and the Bad

Forex Social Trading: The Good and the Bad

Forex Social Trading: The Good and the Bad

Forex Social trading is a relatively new concept in retail Forex trading and its popularity has grown substantially over the last few years. The concept that drives social trading—especially in Forex—is that the process offers an opportunity for Forex traders who trade online to retrieve information assembled from other retail traders and use their combined experience and knowledge to trade in their own accounts.

Social trading works along the same lines as other popular social networks, such as Facebook and Twitter, where individuals communicate directly with others on an ongoing basis from wherever they are. And as with these other social networks, there are advantages and disadvantages to their use.

Advantages of Forex Social Trading

The most obvious advantage of social trading is that it is easy. By monitoring and following other traders and basing their trades on the professional decisions of more seasoned traders, there is no need for individual Forex traders to do their own technical or fundamental analysis. It’s like having the answers to an exam before the teacher even gives out the test questions!
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With social trading, Forex traders have an immediate association with thousands of other traders in an environment where they can interact with each other, discuss viewpoints and then duplicate the trades that sound right for them. At the same time, both novice and experienced traders can learn how top performers come to the decisions they make and which strategies they use that work better than others in their efforts to make a profit while at the same time limiting the risks to their entire portfolio.

Another important benefit of social trading is that when trading as part of a group or community rather than as an individual, it is easier to avoid the personal biases that often result in losing positions. As part of the pack, trading becomes much easier to view changing activity in the market from a more unbiased perspective. For example, a trade that starts to show a loss can trigger emotional reactions in a trader which often lead to bad trading decisions later. When traders work together as a unit, it is easier to discuss and analyze market activity as it transpires and to make decisions that are more sensible.

Finally, by opening up trading to the public, social trading acts to remove Forex trading from being an instrument that is normally restricted to top league brokers and multinational banks. And since all trades placed on a social trading platform are copied directly, no one can intervene in a trader’s trades so there should be more transparency.

Disadvantages of Forex Social Trading

Social trading provides a free exchange of information to individual and small scale investors. And while this is certainly an advantage, it could prove to be a disadvantage. Since there are only a small number of traders who are consistently successful, by using social trading networks a trader can follow the wrong trader and end up with losses rather than the hoped-for profits.

One of the major disadvantages of social Forex trading is that it remains relatively challenging for a trader to select the right social platform. There is no shortage of networking platforms and this makes it difficult for a trader to make a choice. And although social Forex trading is not a scam, there are some social trading scammers that don’t play by the rules and an unsuspecting trader can be easily swindled. Choosing the right trading platform is the key to social trading but it is tricky and traders are not always savvy enough to decipher the good from the bad.

It isn’t only the devious broker or business that can use a good platform for scheming purposes. Traders must also be careful of which traders they choose to follow as here too, there are untrustworthy individuals. Setting down a solid set of criteria developed prior to opening a trading account helps traders to select the best social traders from what can be hundreds on a leader board.

There are various different social trading networks and they offer different features many of which are not fully understood by a newbie Forex trader. Some networks reward their traders not just for the profits they make, but also for their low risk management approach. This makes leading traders more risk conscious than those on other networks which reward traders for profits only and may attract more risk taking in the process. With this type of network, newbie traders are encouraged to start trading with additional risk which is not always a good beginning.

Trading Forex Online? Forex Social Trading NetworksTrading Forex Online? Forex Social Trading Networks

Trading Forex Online? Forex Social Trading Networks

Trading Forex Online? Forex Social Trading Networks

Trading Forex Online? Forex Social Trading NetworksTrading Forex Online? Forex Social Trading Networks

By Martin Grippen

Forex online has become popular in the last couple of years. The online platforms are more user-friendly today than they were years ago. They provide the users on the platform with tools that can be useful in finding pips that can gain a profit.

As a beginner and less experienced in the Forex market it can be difficult to find an entry point and exit point. It can also be difficult to find which currency pair that is in an up-trend and which one that is in a down-trend. Even with the tools the platforms offer it can be difficult and time-consuming to learn the various tools to know. In addition, it also requires some knowledge to choose the right one that fits in the actual market situation.

This is properly one reason Forex social trading networks have become popular. The networks are a part of the online platform and the purpose is to share information, follow and copy trades.

One benefit from a Social network is copying others trade and being copied. Another benefit is the knowledge and skills they obtain from the trader information they share.

Forex is analyzing the market. Is the currency curve moving up or down? It’s the same problem when a member of a Forex network copying another member’s trade. Instead of analyzing the currency curve is it the members’ performance curves. When a member is analyzing a member’s performance curve he will look at whether there are stable earnings and whether it has been up-ward for the last 3 to 6 months. The information is usually in percentage and therefore it is important to include the number of trades that have been made during the same period as the percentage represent.

Analyzing others performance in a Forex social net is also called social financial analysis. It is important to understand how to analyze the performance as it is similar to analyzing the trend in the market. The purpose is to find pips that gain a profit.

It is also important to understand that being a part of a Forex Social trading network and coping others trades has large potential rewards, but also large potential risk. It is necessary to be aware of the risks. One way to minimize the risk is to start with a small amount of money and then increase the money amount. In other words place 2 or 3 percentage of the investment capital on a Copy Trade and if the trader that is being copied generates a continuous profit increase the percentage of the investment capital.

Watch the video on my Forex website and click the join now button on the video after you have watched the video. At the social trading platform is another video explaining the idea of copying Guru Trader trades. The video is at the top to the left.

Article Source: http://EzineArticles.com/expert/Martin_Grippen/1148322
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How Social Trading Can Put You Ahead in Forex

How Social Trading Can Put You Ahead in Forex

How Social Trading Can Put You Ahead in Forex

By Olushola George Otenaike

Social trading is the latest technique in forex and it is unarguably the easiest if compared to other techniques. If you want to make quick easy money in today’s forex market, going the social way will definitely put you ahead in the market.

Whether you are a pro or a newbie, it gives you the opportunity to spot the trend and go with it. As a pro in the market, you can use it to confirm your forecast and as a newbie, you can use it to discover the right time to enter the market.

It is the use of top traders’ trading positions to open one’s trading position. In order to benefit from this trading type, you must use a platform that supports it. A lot of brokers have developed platforms that incorporate itbut make sure you go for the best.

The good thing about social trading is that you will spend less time in the market. Instead of spending hours analysing charts, once you tap into its opportunities, you will have more time for yourself. Also, if you are looking for fun while trading forex, going social is your best bet.

Coming up with the right forecast is the aim of all forex traders but using the forecast of three or more traders is one of the smartest ways to trade. That is the concept of going social. You will have a clearer picture of the market and open trade positions at the right time. This will also reduce your risk exposure because you are basing your trade decisions on real market decisions of others, not on fundamental or technical analysis alone.

Moreover, the profitability rate of a social trader is high because you are watching before leaping. You will avoid the mistakes of losers and cash in on the successes of gainers. If you have never participated in this type of trading in today’s forex world, you are absolutely missing a lot.

Either on your mobile phone or computer, social trading has brought conviviality into forex trading. The era of brainstorming is over as you can now trade with little mental effort. As the world is now driven by social networking, forex is not left behind as more and more people are now making money by going social. The caution here is that you should make use of a trading platform with functionality that supports it so that you will be able to join the winners.

 

Article Source: http://EzineArticles.com/expert/Olushola_George_Otenaike/591980
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Advantages of Forex Social Trading Networks and What to Consider: Copying a Trader in a Network

Advantages of Forex Social Trading Networks and What to Consider: Copying a Trader in a Network

Advantages of Forex Social Trading Networks and What to Consider: Copying a Trader in a Network

By Martin Grippen

Forex Social Trading Networks On the internet is a lot of trading information about how to trade Forex online; which currency pairs are bullish and which ones are bearish? The trading platforms have a lot of advanced trading tools the users have access to in finding pips in the market.

In the last couple of years is a new feature available on some of the online trading platforms. It is called a Social trading network; it is a platform connected to the trading platform. It gives the traders possibility to follow other traders’ trade and even copying their trades. As it is social it is also possible to interact with other traders and develop trader experiences through the interaction.

The mindset of the article

The mindset in this article is to describe the advantages of a Social trading network and what to consider copying a trader in the network.

Advantages

One advantage is the interaction between the social network and the trading platform. On the trading platform is a small window with information from the social trading platform. It provides the trader with information about the recent trades on the social platform and which trader is top traders and has a high win ratio.

It is an advantage as the information from the social net is inspirational and gives ideas of which currency pairs to trade. If the trader wants more information about a trader he can click on the traders’ link and find the history of the traders and see how he has managed the trades he had made in the past. If he has managed the trades well he will be a valuable inspirational source or even a trader considering copying.

What to consider copying a trader

The purpose copying another trader is to gain a profit. It is therefore important to analyze the trader to be copied. Analyzing others performance in a Forex social trading net is called social financial analysis. Some of the data an analysis includes are historical data as profit margin and latest trade figures; it could be the last few weeks of trade data and the profit ratio in recent trades.

As in regular Forex trading social trading has as well large potential rewards, but also large potential risk and it is in these trades also necessary to be aware of the risks. One way to minimize the risk is to analysis the traders’ performance and starts copying the trader with a small amount of money and then increases the money amount. In figures it could be 2 or 3 percentage of the investment capital on a Copy Trade. If the Copy Trade generates a continuous profit increase the percentage of the investment capital to a higher level.

A further description of a Social trading network is on my Forex website where there is a short video and a recorded webinar about a Forex Social network. I hope you will watch the videos and consider the social trading platform as your future trading platform.

Thank you for reading my article. Forex Social Trading Networks

Article Source: http://EzineArticles.com/expert/Martin_Grippen/1148322
http://EzineArticles.com/?Advantages-of-Forex-Social-Trading-Networks-and-What-to-Consider:-Copying-a-Trader-in-a-Network&id=7350896

 

 

TRADEO innovating Social Trading

TRADEO innovating Social Trading

Cheak out out Live Tradeo Social  trading page 

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Many forex brokers try to be all things to all of us, but fail due to a loss of consciousness. Then there are corporations like Tradeo.com that do focus on a single area, innovate the carrier supplying nicely past industry requirements, and thereby be successful through offering stellar provider from the get go. As evidence, a cursory overview of different assessment sites reveals a extensive variety of compliments throughout the board, so this control team is manifestly doing some thing right. founded in 2012 and HQ’ed in Malta, the company is committed to their thriving purchaser base in approaches that lead them to stand out from the gang.
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in keeping with their internet site, “Tradeo is pioneering the sector’s first genuine Social trading platform. subsidized by leading project capital corporations, Tradeo is committed to revolutionizing the economic buying and selling experience. we’ve got spent the final 3 years operating on a set of notable Social trading equipment. From correct market feeds, advanced charting, and groundbreaking social capabilities to our beautiful interface, Tradeo’s era represents a quantum soar in the satisfactory of a trader’s standard on line experience.” Tradeo is a registered broking, and is the partner of FXGlobe Ltd (205/13), a fully certified investment offerings business enterprise (registration range HE 254133) authorized and controlled with the aid of the Cyprus Securities and trade commission (CySEC) and located at 61 Omirou road, Joanna courtroom, 2nd ground, Agios Nikolaos,LIMASSOL 3091, CYPRUS.
Tradeo’s working platform units them aside from the herd of competition on this subject. not most effective are you able to reflect-alternate via choosing from a huge organization of professional worldwide investors, but you may additionally examine from the approach remark protected by means of the carrier and set loss limits so as to robotically guard your chance downside. The social trading characteristic set is loose. you can change forex, shares, commodities, and indices, and your account is blanketed with the aid of the Cyprus Securities and alternate commission. (CySEC)

FXCM joins the social trading trend in partnership with Swipestox

FXCM joins the social trading trend in partnership with Swipestox

FXCM joins the social trading trend in partnership with Swipestox

Investors Buz  –  Global Markets Roundup

FXCM joins the social trading trend in partnership with Swipestox

FXCM (NYSE:FXCM), the biggest forex broker in terms of customer deposits, now gives social trading via the platform of the German social buying and selling cellular app Swipestox.

in step with the authentic declaration, FXCM’s clients can be capable of trade all principal foreign exchange pairs, global indices and gentle commodities.

„SwipeStox has satisfied us,” said Brandon Mulvihill, MD and global head of sales at FXCM. “a real innovation, distinctly done. For us, SwipeStox is the device for real social buying and selling. It’s fun, smooth to get admission to and deal with, and it literally engages and mobilizes our customers. we are extremely joyful a good way to offer our customers this new measurement of buying and selling.”

Swipestox changed into founded in Germany in 2014 and offers reproduction buying and selling of forex, Indices, and CFDs. The app changed into released this February. it works a bit just like the well-known dating app Tinder, wherein customers can swipe left or proper on customers’ profiles and hook up with them. Swipestox customers can see live trades and replica them by means of swiping, while not having to depend on fundamental or technical choices on my own. The app shall we customers both use the available information to execute their own trades or simply observe and copy other traders.
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The application gives trading on almost 800 markets and the brand new update lets in commencing of a “real-cash” account from inside the app. in keeping with Google Play store, it has among 100 000 and 500 000 installs and has a mean ranking of four.3 of five stars.

when you consider that its launch, Swipestox has a social community of one hundred fifty 000 buyers from internationally. among the app’s primary companions, besides FXCM, are the brokers One financial Markets and Hanseatic Brokerhouse.

In February this 12 months Swipestox raised $1 million from an angel investor.

FXCM is a registered futures commission merchant (FCM) and a retail foreign exchange dealer (RFED) with america CFTC. It has units registered and controlled with the relevant government within the US, the United Kingdom, Australia, and France.

The dealer offers foreign exchange, contracts for difference (CFDs), and unfold having a bet offerings. It gives forty currency pairs at the buying and selling Station and MetaTrader 4 (MT4) trading systems.

several weeks in the past it transpired that FXCM is making plans to to problem extra securities really worth mixed $a hundred twenty five million, so that it will growth its running capital and reduce exquisite debt.