If you’ve spent any time in the Forex business, you must have heard about Social Trading. We at CM trading believe that this is a great way for novice investors to begin trading Forex. Here’s the low-down on everything related to social trading and ways to decide if it's right for you.
What is Social Trading?
Forex has always had a reputation as ‘risky’ and ‘complicated’. Needless to say, these two words are far from accurate. Social trading has evolved to address a specific need in the market. The need for a fairly easy trading method, one that doesn't require investing a lot of time in fundamental analysis or technical analysis.
With social trading, you have an entire 'community' of Forex traders on platforms like MetaTrader 4 and other similar platforms, that are there to assists you with Forex decision making. You can learn from other trader's history, what worked for them and what not so much, and then build your own strategy based on their success. This significantly reduces the learning curve and helps guide you towards good trading decisions.
What will Social Trading do for me?
As we stated above, Social Trading is a great way to dabble in the Forex waters while still wearing your safety belt. Previously, you would need to access to not only a ton of personal knowledge, but also to invest a lot of time in the process (that if you wanted to have any chance of succeeding). Forex trading platforms like MetaTrader 4 can now bring you live feeds of currency trading data, so you always know what the traders around you are doing.
Of course, not all traders are created equal, or interesting to you and your trading style. This is why CM trading encourages you to make sure you are following only those who fit your trading style, and whom you have confidence will make the right trades. You are then free to copy their trades and enjoy when they succeed.
How can Social Trading Benefit me?
So, in short, social trading can be a great way to leverage a Forex trading platform to work for you.
- Provides you clear data to analyze
- Easy to use
- Promotes an open trading atmosphere
- Easy to access even as a Forex Novice
Forex trading platforms like MetaTrader 4 enables more users to take advantage of the volatile world of Forex, and make major profits while trading. If you’re keen to start trading in commodities, click on this link to get started!