Learn to Trade Yourself or Copy Others?
Learn to Trade Yourself or Copy Others?
Trading is one of the most exciting, profitable and rewarding activities in existence. The most successful traders in the world, like George Soros, Paul Tudor-Jones and Jesse Livermore, have made tens of billions of dollars in profits over their careers.
The greatest thing about trading is that you can be successful no matter what your education, background or economic situation is. If your trading strategy is effective, you will make money – period.
Learning how to trade stocks, currencies or any other financial instrument, is however a complex 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 political news
- Develop a trading system based on all the things you have studied
- Test your trading strategy first by “paper trading”, then with real money, risking potential losses
All this will cost you large amounts of time, work and money. But the hard reality is that you are still very likely to fail. Study after study has shown that between 80% and 95% of all traders lose money. For most people, and probably for you too, this does not sounds like an especially attractive deal.
On the other hand, you can learn how to trade in a quicker, easier and more profitable way – Social Trading.
Learning How to Trade With Social Trading
Social Trading opens the door to trading success without the large time investment, financial risk and high chance of failure of do-it-yourself traders. Social Trading networks are basically like social networks (Facebook, MySpace), only that trading activity and results are shared instead of personal information. With Social Trading, you can:
- Find traders with successful track records that suit your investment style, philosophy and timeframe
- Copy their trades into your account, replicating their strategies and profits
- Trade your own strategy and have others copy your trades
- Discuss with other users all trading, market and finance-related issues in real-time
The advantages of Social Trading are many:
- You make money by following successful traders
- You make money if you other traders copy your trades, receiving as compensation part of their brokerage fees
- You can see other people’s trading results, risk profiles and portfolios – all updated in real-time
- You learn trading from the cumulative knowledge and experience of millions of people -all in one place
With Social Trading you instantly see what works and does not work, through the profiles of other users. While DIY investors have to learn from their own (often expensive) mistakes, with Social Trading you can learn from other people’s – for free. And even if you have no experience, Social Trading platforms are easy and intuitive to use, which means you can start trading immediately and confidently. In other words, you get all the benefits of trading – without the disadvantages.
Learn to Trade By Copying Profitable Traders
The premise is simple. Successful traders:
- Make a lot of money and
- Are very hard to find
That means that only a few especially gifted individuals will be able to make consistent profits trading. If you had the chance to trade like them, would you?
Because you can learn how to trade by copying others….
Social Trading platforms like EToro and ZuluTrade allow you to copy the most profitable traders and replicate their trades 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 past performance, profile and updated portfolio of each trader, and decide which one best suits your risk-reward profile, personality and timeframe.
If you are successful trader yourself, you can benefit even further. There are potentially hundreds of thousands of people who would be happy to copy your trades and make money from them. The more successful you are at trading, the more people will follow you. This will generate more trades and more brokerage fees, a part of which will be paid to you as fees from the brokerage partners of your Social Trading network.
With millions of trading members, the strategies, instruments and risk profiles available with Social Trading are virtually endless. That means you will be able to fully diversify your portfolio and achieve the highest risk-adjusted returns.
Best Social Trading Platforms to learn To Trade
At this point, you are seriously considering Social Trading to learn how to trade the 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 million members from 170 countries. It has a variety of unique features:
CopyTrader™ – Which allows users to automatically duplicate another trader’s portfolio and investment decisions. The success rate has reached 80% over 124 million trades.
CopyPortfolio™ – CopyPortfolio™ are investment vehicles that group together a portfolio of financial assets. There are 2 types of CopyPortfolio: Top Trader CopyPortfolio which comprise the best performing and most sustainable traders on eToro, and Market CopyPortfolio, that group together CFD stocks, commodities or ETFs under one chosen market strategy. CopyPortfolio™ help investors minimise risk and maximise profits by taking copy trading to the next level.
ZuluTrade – This platform has more than 100,000 traders operating from 190 countries. Users benefit from a free trading demo which you can use before opening a real-money account. Although it started as a forex-only trading network, ZuluTrade now also offers binary options on currencies. These allow you to profit from the direction of forex movements, irrespective of their magnitude. Among the other features:
ZuluTrade Automator™ – This is a personal trading assistant that will notify you when certain events happen or execute any account action (Take Profit, Stop Loss etc.) based on your automated rules.
ZuluGuard™ – This is a safety net that monitors your account and automatically protects it by securing profits and limiting losses.
Mobile ZuluTrade – An easy-to-use mobile app to monitor your account via iPhone and Android, in full flexibility.