Social Trading – Get Ready for a New Way to Trade!

8 March 2012
By

Do you remember what the internet was like without YouTube, Facebook and Twitter? No! Me neither, and the same is about to be true for financial trading without social trading networks. Networks such as the eToro OpenBook are a true game changer in FOREX. Instead of trading alone at home, this new revolutionary application enables traders all over the world to connect with hundreds of thousands of other traders and harness their collective trading skills together.

This application is about to bring Social Network power to FOREX trading!

 

How does social trading work?

The eToro OpenBook is a live database of all the trading activity carried out through the eToro platform. By being a member of the OpenBook network you can see what top profiting traders are doing, follow their trades and even them. This also means  when one trader makes a profitable trade, everyone else can benefit by learning from it or simply by copying the same trade!

OpenBook’s CopyTrader allows you to take advantage of the concept of shared trading information even further, by setting your account to automatically copy other traders! This means that a novice trader can literally trade like a pro within a matter of seconds by simply copying one of eToro’s guru traders.

With the help of eToro CopyTrader you can effectively compile a people-based trading portfolio, rather than a financial instrument portfolio, and manage the traders you copy according to their results. The guru traders on the other hand, can get an extra income by accumulating a large following of copiers and getting some kickback from their trading activity.

 

Plus500

How do I start copy trading?

Copy trading is simply a revolution in financial industry. It is very different from regular financial trading and facilitate FOREX trading compared to  regular trading. Unlike the financial markets, profitable traders are easier to spot, monitor and manage simply because they are reliable. Profitable traders already do the job of minimizing market risk for you, so you are definitely less exposed to risk from the get go.

When you start copy trading, finding the right traders to copy is key. Luckily, eToro OpenBook helps you by providing a number of ways to choose the right traders for you. First and foremost, you have the OpenBook rankings. These rankings rate traders based their trading performance over a given time period, according to the parameter of your choice.  It may seem wise to look for traders with the highest win percentage, however while this figure shows the ability of the trader to analyze the market it doesn’t reflect its ability to capitalize on the market movement, and therefore you should also make sure to look at the gains figure.

Once you figure out which traders you want to copy, all you have to do is click on the “Copy Trader” button and decide which percentage of your account you want to dedicate to copying each trader. It is always best to start copying a trader with only a small percentage of your margin (around 5%). Once the trader proves that he/she can consistently deliver, you can increase your investment dedicated to this trader.

 

All you have to do now is join the eToro OpenBook trading network today to start building your people based portfolio!

Tags: , , , , , , , , , , ,

Comments are closed.