Social trading involves observing and analyzing the strategies used by other successful traders. Here, you can take these techniques and auto-copy them for all your trading needs. You don’t need any financial knowledge to make it in social trading. Of course, financial trading can be tricky at times. However, that shouldn’t scare you from trying your luck. All you need is the following tips and tricks.
Use the Social Features
Nowadays, the financial world is getting into social media. More and more information can be accessed through social media platforms. So, use social features. From Facebook to Instagram, using social features can help you become a better social trader. Go to news feeds. Look at the insights on Facebook and Twitter. Follow renowned traders. Sign up for newsletters with the best traders if you want to maximize profits.
Auto copy Several Traders’ Strategies
Of course, the auto copy feature is good. However, what will bring real results is combining several strategies from different traders. So, don’t just stick with one trader. Diversify your social trading portfolio. So, copy many traders. Remember, any player can have a bad day or week. So, combining strategies from several players increases your chances of making profits. It also diversifies your risk—a key step towards better risk management.
Consider Conducting Your Own A/B Tests
When it comes to trading, ROI takes center stage. That’s why you should do your own A/B testing before investing real money. In particular, it’s important to copy a few traders using smaller budgets. From here, you can determine the type of trader who can bring you real profits. Use the minimum budget to test different strategies. It will minimize your risks while helping you master the game.
Don’t Copy New, Unverified Traders
Trading is all about the experience. Without experience, making mistakes is possible. Plus, new users tend to get excited about making real profits without looking at the possibility of sinking into losses. To avoid losing your money, don’t copy new users. Stay away from unverified users. When using social trading strategy, copy verified users. Ensure that the traders you are copying have positive stats. Look at their past track records. In a nutshell, copying from verified traders is likely to bring you real profits.
Stay Away From Copying Best Copiers or “Highest P and L Traders
Of course, copiers with excellent P&L as well as ROI can be tempting. They look promising. However, it’s important to leverage the filters located in the section labeled “Top Traders”. This will help you find the best trader to copy. Plus, this feature will bring you the right trader who shares similar interests and risks.
Trading is a game of numbers. It also takes strategy to make huge profits from trading. And one of the best ways to master strategy is doing more research. So, place more emphasis on research. So, if you feel that you aren’t getting the right traders to copy from, don’t be afraid to pull out. Stop copying and resort to research. Having more knowledge when it comes to trading can help you make more profits. Google has a lot of trading research materials you can leverage on to take your trading game to another new level. Read books. Go through trading articles. Don’t hesitate to watch more trading YouTube videos. In a nutshell, knowledge is key as far as trading is concerned.
Consider Reinvesting Your Gains
Of course, you are after making profits. Thus, many traders will be tempted to withdraw their first profits. However, compounding is a key element if you want to be a successful trader. The best way to grow your game is to reinvest those profits of yours. Trading is like any other investment venture. If you want to be successful, reinvesting a certain percentage of your gains is a must. So, don’t eat all the profits. Reinvest some of it. It will increase those profits of yours over time.
Leverage on the Auto Copy feature
An auto copy is an important social trading feature. It allows players to replicate experienced traders’ activities. By just pressing this button, you get explicit knowledge regarding their trading activities. With this feature, the financial industry is headed for the best. Nowadays, any type of trader—including new ones—can use this feature to have a deep understanding of social trading. So, if you want to make real strides in the social trading arena, think about using the auto-copy feature.
Remember the First Point
Of course, the auto copy feature is a real hit. It will help you get knowledge from experienced traders. However, that doesn’t mean it is that magic pill that will propel you to the stardom arena. Thus, be sure to follow the first point.
Expand Your Trading Knowledge
Obviously, you can follow and copy successful traders. But that doesn’t take away the fact that you need to conduct your own research. Thus, avoid copying the first traders that you come across. Instead, do your own research. Ascertain if these traders are successful. Look at the trading history of the trader you want to copy. Also, don’t forget to look at the statistics and feed history.
Trade responsibly. Avoid chasing losses. Copy reputable traders. Do more research. Remember, trading is a game of numbers. Be sure to get the ROA right. Always, reinvest your gains. Consider conducting your own A/B tests. Don’t auto-copy one trader. Copy from several successful traders.
Who doesn’t love making money? Nobody, right? Well, one of the best ways of making good money is taking your game to trade. With social trading, you have an effective way to make money. The best part, you need little knowledge of the financial market. With the above tips and tricks, you are sure of beating the odds and inflating your bank account. From using the auto copy feature to doing enough research—these are the tips and tricks that can deliver real results when it comes to social trading.