The options for people to multiply their wealth and to make it big in their respective fields have enhanced to a great extent. The cutting-edge technology and the increased awareness amongst masses are the two most important reasons behind the surfacing of innovative ways of money making.
One of these being social trading which combines the elements of online trading and social media. Platforms dealing with social trading and investments are becoming more renowned with eToro already having a database of more than 4.5 million social traders.
Are you wondering why and how social trading is gaining so much popularity? A few important reasons have been discussed below:
Copying Links and Trades from Experts in the Field
It is essential for you to identify professional traders from the amateur ones and for this, you need to do a thorough research on any platform. There are times when a few average traders reach the leaderboard unexpectedly but their trades cannot be looked up to. Learn the tricks to locate the authentic ones and make sure to follow their leads to grow your account. You will ultimately be making huge profits through it.
Trading Can Be Initiated with a Minute Investment
If you only have a handful of investment, it is not advisable to plunge into trading because the profit will not be able to cover your substantial needs. Furthermore, there are high chances that you will be losing your initial capital as well. Contrary to this, social trading doesn’t require a lot of your time and is the best choice when a person has a limited investment.
No Management or Performance Fees
There are a number of propriety funds which charge a management fee of between 2% to 5% in addition to the 30% to 30% of performance fee. In social trading, your payment will actually be the time which you are spending on it otherwise, there are no additional charges involved. There is always a chance of losing some money and a lot of your time is required too but the non-payment of any additional fees is still quite attractive.
Improving Risk Management Skills
Social trading platforms are the best way for potential traders to improve their skills and in learning to mitigate the risk factor. By observing more successful traders, one is enlightened about which strategies tend to work in the favor and which should be avoided. The knowledge which is gained through all this can be used to keep your own investment away from all kinds of risks. Certain platforms like Zulutrade and Currensee even offer to look for successful traders based on their ability to avoid risk.
Trading has become interactive because of social trading which lets the professionals and the newbies come together and learn about various strategies. There are websites like SocialTradingGuru.com which provide an insight to the individuals about various social trading platforms and allows them to determine which is more suitable for them as per needs.