A Beginner’s Guide to Social Trading
A Beginner’s Guide to Social Trading
Social trading is a low investment way to trade, making it perfect for beginner traders. Social trading is a method of trading that has rapidly gained popularity following the advent of social media and online trading.
What is social trading?
Social trading essentially works by copying the trades of expert traders. This can be anything from a copy trade, where only a single trade is copied, to mirror trading, where the less experienced trader copies the exact trading activities as the more experienced trader.
However, social trading is not necessarily a good way to trade for everyone. Read below to see the advantages and disadvantages of social trading, and see if it is for you.
- It’s an easy way for beginner traders to start. Because social trading is essentially copying the trades of a more experienced trader, you don’t need any prior knowledge or a market to start trading.
- You can talk to other people. As the name implies, social trading is largely a social affair. This means interacting with other traders as much as it does the markets. By talking to other traders, you can pool your collective knowledge and experience together. Platforms such as ZuluTrade and MyFXBook allow traders to connect with each other, and in turn, copy each other’s trades.
- It requires a very low time investment. Because you are copying the trades of a more experienced trader, you don’t need to spend as much time observing the markets as a more traditional trader making their own trading decisions. With platforms such as ZuluTrade and MyFXBook, this process becomes even easier, as these websites offer automated services that copy the trades of your chosen trader for you.
- Even the best can make mistakes. Experienced traders may have more knowledge of the market, but that does not mean that they necessarily make better trades. After all, they are subject to the same pitfalls of trading psychology that the rest of us are, such as greed and fear. Therefore, social trading is by no means a risk-free way to trade.
- It can be difficult to pick a trader/find a trader that matches your goals. A more experienced trader might not necessarily have the same amount of capital, or long term plans that you have with regards to trading. It is still important to understand what your own goals and plans are when trading.
- You don’t really gain first-hand experience. Social trading is relatively low-risk, but that lack of risk means that you also lose out on valuable experience compared to if you went out and made trades yourself. You are also less likely to understand market patterns and where the market will go in the future.
Where do I start?
Great, so you’ve decided that social trading is something that you want to try. The next step is to get started. Blackbull Markets is partnered with both ZuluTrade and MyFXBook, two of the most popular social trading platforms. As a result, it is extremely easy to set up an account. Our MetaTrader 4 program is integrated into MyFXBook, giving you unrivalled ease of access.
ZuluTrade allows less experienced traders to follow established traders, or signal providers, who are ranked according to an internal ranking known as “ZuluRank”. This lets you choose the strongest traders to copy from. This, combined with other features such as ZuluGuard, which allows you to stop copying the trades of a signal provider when the make a change in their trading strategy, and Margin-Call-O-Meter, which lets you see when your parameter settings might put your account at risk for a margin call, makes ZuluTrade one of the most innovative social trading platforms, and the reason we have chosen to partner with them. We have also hosted demo trading competitions on ZuluTrade, with the most recent one having a prize pool of $5,000.
For more information, and to open an account if you are an existing client, please contact firstname.lastname@example.org.
If there is a time for a currency to be relatively weak, it’s during recessionary periods. A stronger currency entails a rougher time for goods and services to be exported out of the country as those exports are more expensive due to the stronger currency.
We have a relatively light data week ahead regarding the amount of significant data points coming out. However, the economic events are extremely significant in determining the state of their respective economies. Hope you all are staying safe. Here is your week ahead.
In 2020, Silver had a legendary rise from its low during the peak of the Coronavirus lockdowns in March – up over 140%. Analysts (including me) attempted to justify its price and separate its strong correlation with Gold by arguing that Biden’s climate change policies will boost Solar Panels’ use, which extensively uses Silver. This may be a catalyst in the longer term.
Black Bull Group Limited (trading name: BlackBull Markets) is a New Zealand registered and incorporated company (company number: 5463921).
We are also registered with the Financial Services Provider Register (number: FSP403326).
Black Bull Group UK Limited is registered in United Kingdom, Company Number - 9556804. Payment clearing services provided by: BlackBull Group UK Limited (Company Number - 9556804) Address - 483 Green Lanes, London, Greater London, United Kingdom, N13 485
Risk Warning: Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange, you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore, you should not invest money you cannot afford to lose. You should make yourself aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any questions or concerns as to how a loss would affect your lifestyle.
All payments related to the Paysafe Group are facilitated by Black Bull Group Limited.
Copyright © 2021 Black Bull Group Limited. All Rights Reserved.