The digital world has paved the way to virtual socialization through social media applications. For the information of everyone, such manner of communication has also invaded the forex trading industry. Indeed, social trading platforms have been famous to traders since the beginning of trading platforms such as eToro in 2010. Since then social trading has been a fad and has become one of the most researched trading strategies especially for newbie traders. As for the technical traders, social trading is merely a form of socialization for traders but it can never be considered as a formal trading strategy as the people involved only learn via influencing instead of providing formal trading. Believers of Social trading on the other hand oppose these points. According to them, in as much as some people learn so many things in life just by observing, then social trading could also be a great avenue to learn and share each other’s trading expertise.
Is social trading reliable?
In terms of reliability, expert traders have divided feedback for social trading. Some say that it can be reliable when you are skilled enough to distinguish which social trader is worth following and which is not. We cannot admit the fact that social trading platforms are designed to work like the common social media platform where anyone who has good or even bad intentions can easily create an account and start digitally mingling with people. In line with this characteristic, the social trading platform is also partly reliable profit wise. Though there are some legit mentors who are willing to provide justifiable training for forex trading and other trading fields, keep in mind that every trader differs because every human is born with individual differences. This then shows that techniques that may work for an individual may not work for you because you have your own way of thinking.
The Copy vs Social trading
These two trading styles are relevant to each other yet just like us humans, they also have various differences. Based on its given term, copy trading is similar to paroting when you talk. As a beginner, a copy trader, the best way to learn is to entirely follow the footsteps of the successful trader. Social trader on the other hand is just using a particular strategy that is taken from an expert but you do not allow such strategy to control your trading lie.with social trading, you are given the freedom to revise or even incorporate other strategies of techniques depending on your preferences.
WIth the explanations that we have stated, we can clarify that social trading is indeed a broad trading field and part of it is copy trading. With the established differences between the two relevant terms, It is essentially important for you to be wise towards packing which among them would be an appropriate technique for you. Though the internet is teeming with persuasive notes and advertisements about a particular approach, it is still best to listen to yourself.