Investing in Online Trading: Succeeding with Social Trading

There is much advice about social trading success, but the best hope a trader can get is to gain experience first, by copy trading on a social trading platform, using the strategies of a trader, who has already made a profit. Think of this as your training for success period, until you feel confident enough to trade on your own.

The first rule of a successful trader should be to make sure you are trading on a platform that suits your needs. Secondly, that you have done your homework thoroughly, and taken note of all the risk factors involved, whether you are trading stocks, shares, or currencies. Proper analysis of all risk factors is a necessary precaution before any investment is contemplated.

Some factors that will see you have success in your future trades is knowing your market and taking notice of when the markets rise or fall. A lot of social trading success can happen, as a result of choosing the right trader to follow; analysing his data to see what his record as a trader is, and then copying his strategy to see how that works. Predictions are not fail-proof, but over time, and with historical data to analyse, a trader can learn from this information, as to how the stock markets react to economic events that affect them. This includes political unrest and crises, government reshuffles, elections, and natural disasters.

To avoid substantial losses in times of unrest and unpredictability, decide on the amount you can afford to lose. Use no more than 10% of the deposit (of all consolidated assets). Do not trade with borrowed money, or make too many transactions at the same time, and most of all, analyse at least two sources of information, graphical analysis, and the news. Do not go against the general trend.