A type of investing known as "social trading" enables investors to track the trading activities of both novice and experienced traders. The main goal is to imitate or mimic their trading tactics to follow their investment strategies. The World Economic Forum has referred to social trading as a low-cost, smart alternative to traditional wealth managers and has stated that it requires little to no expertise in financial markets.
In 2010, eToro was one of the first social trading websites. Wikifolio followed in 2012. In the second half of 2019, according to NAGA, a European company that has been listed on the Frankfurt Stock Exchange since 2017. In addition to those that have already been discussed, some current social trading platforms include Collective2, Zulu Trade, Trading Motion, systems, and FX Junction. We here at NAGA reviews give you complete guidance about Social trading. We are the most trusted platform for social trading and the naga ratings always keep their top position on the list.
Characteristics of Social Trading
By observing what other traders are doing, comparing them to one another, and then adopting their methods and plans, social trading is an alternate method of assessing financial data. Investors and traders relied on fundamental or technical research to help them make investment decisions before the invention of social trading. Investors and traders can include social indicators from other traders' trading data to feed into their investment decision-making processes by using social trading. Social networking services' subset of social trading platforms and networks. The naga reviews after having a detailed study on characteristics of social trading have enlisted below the three categories of social trading.
Some say that social trading reduces the learning curve from novice to the skilled trader and enables traders to trade online with the assistance of others. Traders can communicate with one another, observe others make deals, copy those transactions, and discover what led the top performers to make that particular trade in the first place. Traders can discover which tactics work and which do not by duplicating deals. Speculation is done through social trading, which is morally wrong and should be avoided by everyone. Instead, people should keep a long-term outlook and refrain from any kind of short-term speculation.
Three primary categories of trades exist:
- Single Trade: Trader A executes a typical trade by themselves.
- Copy trading: Trading copies The one trade that trader A places is the same as the one trade that trader B places.
- Mirror trade: Every trade made by trader B is automatically carried out by trader A so that trader A closely mimics trader B's trading activity.
Users can also track a trader's dividends, which means that if a followed trader makes a withdrawal from their account, a corresponding sum will be deducted from their follower's account in real-time.
What advantages does social trading offer?
After conducting a detailed study we at naga reviews are enlisting the advantages of social trading.The advantages of social trading are as follows:
- Quick access to trustworthy trading data:- Social trading platforms expedite the process of looking for reliable trading information by offering detailed information from knowledgeable traders around the world. You can speak with seasoned traders on websites like one-on-one Tutorage.
- Understanding the trading market quickly:- By allowing you to swiftly and effectively learn from seasoned investors, social trading platforms shorten the time and expense required to become a professional trader.
- Earning money while studying:- Social trading platforms allow you to learn from seasoned investors, where you can pick their brains about how to manoeuvre the market while still making a little money by copying their trades.
- Create a trading platform for investors:- Social trading platforms create an investment community where you may communicate with other investors, exchange information, and work together on various projects. Anyone with internet access can quickly and easily access trading information from anywhere in the world thanks to the online platform.
Pros and cons of social trading
We at naga reviews have conducted a detailed study on social trading and here we are enlisting the pros and cons of social trading.
Pros
- Money for the Novice: New traders frequently experience huge losses when they first enter the market, almost as if it were expected. Social trading allows even novice traders to make money by following more experienced traders.
- Learn and Grow: Through social trading, traders can examine the methods used by eminent experts with years of experience. Their trading game becomes stronger as a result, and the likelihood of suffering losses is also decreased.
- Trader autonomy: When using automated trading, traders are constrained by predetermined rules and programmes for entering and quitting deals. However, with social trading, the trader has more control over the choices made concerning each trade. Thus, many of the dangers associated with automatic trading are removed.
- Trade on Social Networking Sites: Since many novices, experienced, and professional traders participate in social trading networks, there are numerous viewpoints on a given investment or on techniques that are evaluated as a whole.
- Transparency: Many pro-investors have established Telegram channels where they share their opinions. These pro investors don't back up their claims with deeds. Social trading platforms have regulations governing this so they can track the precise amount an investor has invested.
Cons
- Time Consuming:Since there are a lot of stocks to be evaluated and a lot of experts’ portfolios to be studied, social trading could be very time-consuming.
- Missed Opportunities:Since with social trading, deals are performed manually instead of the complete process being automated, there are very significant odds that you miss certain opportunities if you display laxity, even for a moment.
- Impulsive Trading: Social trading occurs in groups, and groups tend to exaggerate market feelings or news. This creates a false market indication.
To experience the best trading we recommend you to use the naga trading platforms as it is beginner friendly and the naga ratings are always on the top of the list.
Popular Social Trading Platforms
Now that you are aware of what social trading is and some of its advantages, you might want to learn a little bit more about the platforms available for social trading.
- eToro
- Coinmatics
- Spiking
- NAGA
- TradingView
Final Word
When some traders perform their trading strategies some traders prefer to trade using successful trading strategies done by professional traders, so that they don’t have to take risks while trading and that's what makes social trading special.If you are a beginner and you do not prefer to take the risk we recommend you to use the NAGA trading platform as naga provides you with a demo account and auto-copy method which enables you to copy the trade of professionals. They are beginner friendly and hence the naga ratings are always on the top list.We here at naga reviews have taken our best efforts into bringing you complete knowledge about Social trading.
Disclaimer:This information is not considered as investment advice or an investment recommendation, but is instead a marketing communication.
