Learnto Trade Yourself or Copy Others? Tradingis one of the most exciting, profitable and rewarding activities in existence.
The most successful traders in the world, like George Soros, Paul Tudor-Jonesand Jesse Livermore, have made tens of billions of dollars in profitsover their careers. Thegreatest thing about trading is that you can be successful no matter whatyour education, background or economicsituation is. If your trading strategy is effective, you will make money -period. Learninghow to trade stocks, currencies or any other financial instrument, is however acomplex and long process. You have to: • Study trading literature, books, newsletters etc.• Learn stock, forex and general financial terminology• Keep continuously updated on global economic, financial and politicalnews• Develop a trading system based on all the things you have studied• Test your trading strategy first by “paper trading”, then with realmoney, risking potential losses Allthis will cost you large amounts of time, work and money. But the hardreality is that you are still very likely to fail. Study after study hasshown that between 80% and 95% of all traders lose money.
123 For most people, andprobably for you too, this does not sounds like an especially attractive deal. On theother hand, you can learn how to trade in a quicker, easier and more profitableway – Social Trading. LearningHow to Trade With Social Trading SocialTrading opens the door to trading success without the large time investment,financial risk and high chance of failure of do-it-yourself traders. SocialTrading networks are basically like social networks (Facebook, MySpace), onlythat trading activity and results are shared instead of personal information.
With Social Trading, you can: • Find traders with successful track records that suit your investmentstyle, philosophy and timeframe• Copy their trades into your account, replicating their strategies andprofits• Trade your own strategy and have others copy your trades• Discuss with other users all trading, market and finance-relatedissues in real-time Theadvantages of Social Trading are many: • You make money by following successful traders• You make money if you other traders copy your trades, receiving ascompensation part of their brokerage fees• You can see other people’s trading results, risk profiles andportfolios – all updated in real-time• You learn trading from the cumulative knowledge and experience ofmillions of people -all in one place WithSocial Trading you instantly see what works and does not work, through theprofiles of other users. While DIY investors have to learn from their own(often expensive) mistakes, with Social Trading you can learn from otherpeople’s – for free. And even if you have no experience, Social Tradingplatforms are easy and intuitive to use, which means you can start tradingimmediately and confidently. In other words, you get all the benefits oftrading – without the disadvantages.
Learnto Trade By Copying Profitable Traders Thepremise is simple. Successful traders: 1) Make a lot ofmoney and2) Are very hardto find Thatmeans that only a few especially gifted individuals will be able to makeconsistent profits trading. If you had the chance to trade like them, wouldyou? Becauseyou can. SocialTrading platforms like EToro and ZuluTrade allow you to copy the most profitable traders and replicate theirtrades in real-time for your own account. This is the most time-efficient,simple and effective way of making money from the world’s top trading talent.
In addition, it is a fully transparent process. You can see the pastperformance, profile and updated portfolio of each trader, and decide which onebest suits your risk-reward profile, personality and timeframe. If youare successful trader yourself, you can benefit even further. There arepotentially hundreds of thousands of people who would be happy to copy yourtrades and make money from them. The more successful you are at trading, themore people will follow you. This will generate more trades and more brokeragefees, a part of which will be paid to you as fees from the brokerage partnersof your Social Trading network. Withmillions of trading members, the strategies, instruments and risk profilesavailable with Social Trading are virtually endless.
That means you will beable to fully diversify your portfolio and achieve the highest risk-adjustedreturns. BestSocial Trading Platforms to learn To Trade Atthis point, you are seriously considering Social Trading to learn how to tradethe markets. You now have to choose the best platforms to do this: Etoro – Etoro is the world’s N.1 Social Trading network, with over 6 millionmembers from 170 countries. It has a variety of unique features: CopyTrader™ – Which allows users to automatically duplicate another trader’sportfolio and investment decisions. The success rate has reached 80% over 124million trades.4 CopyFunds™ – CopyFunds™ are investment vehicles that group together a portfolioof financial assets.
There are 2 types of CopyFunds: Top Trader CopyFunds whichcomprise the best performing and most sustainable traders on eToro, and MarketCopyFunds, that group together CFD stocks, commodities or ETFs under one chosenmarket strategy. CopyFunds™ help investors minimise risk and maximise profitsby taking copy trading to the next level. It’s like having 1000s of the world’sbest traders – all working for you. ZuluTrade – This platform has more than 100,000 traders operating from 190 countries.
Usersbenefit from a free trading demo which you canuse before opening a real-money account. Although it started as a forex-onlytrading network, ZuluTrade now also offers binary options on currencies. Theseallow you to profit from the direction of forex movements, irrespective oftheir magnitude. Among the other features: ZuluTradeAutomator™ – This is a personal trading assistant thatwill notify you when certain events happen or execute any account action (TakeProfit, Stop Loss etc.) based on your automated rules. ZuluGuard™- This is a safety net that monitors youraccount and automatically protects it by securing profits and limiting losses. MobileZuluTrade – An easy-to-use mobile app to monitor youraccount via iPhone and Android, in full flexibility.
1 https://faculty.haas.berkeley.edu/odean/papers%20current%20versions/individual_investor_performance_final.pdf2 http://www.businessinsider.com/what-percentage-of-traders-make-it-2011-63 http://hub.hku.hk/bitstream/10722/141187/1/Content.pdf?accept=14 https://www.etoro.com/en/social-trading/