While social networks are well-known to everyone, the global popularity of social trading is also on the rise. The allure of earning income from investing free funds without prior trading experience is drawing many individuals. However, in reality, beginners with a limited understanding of the nuances of social trading may encounter some unexpected challenges.
What is social trading, how does it work, and how best to make money using it, without losing it all? What are the advantages and specifics of this technology? How to choose a suitable network for yourself and not be disappointed as a result? We will answer these and other questions in this article.
The main feature of social trading is the possibility of copying transactions. This is an opportunity for anyone, even someone with no trading experience, to make transactions with the same results as an experienced professional.
This trading method is recommended not only for beginners but also for experienced traders. But there's always a bit of risk involved. Sure, you might have a bunch of successful trades, but there's also a chance you'll hit a few losses. So, it's best to consider all the possible issues. One important concern is having a small deposit and encountering a series of highly unprofitable trades. In such a scenario, there's a risk of incurring losses despite being guided by a successful trading strategy. Just something to keep in mind!
How does the Social Trading feature on the ExpertOption web platform work? It's simple, first, you need to top up your account with any amount starting from $10. This is necessary to convert from demo trading to real trading.
Next, select the asset you wish to trade on. If you have doubts — don't worry, we'll tell you how to choose the most popular trading instrument among traders using the Social Trading feature. So, after selecting an asset, on the right side of the screen, you can see the Social icon — this is the Social Trading feature. Click on it.
After clicking in the side right panel, you'll see many different symbols and data. Let's dwell on them in more detail.
The Opened deals graph shows the number of open deals at the moment for the selected trading asset.
The more open deals, the better — this shows an increased interest of traders in the asset you have chosen, which means there will be strong up or down movements in it.
The volume graph shows the volume of open trades. If you see the number of open trades is 60, and the volume of trades is $600, it means that at the moment there are 60 trades open for 10 dollars.
The volume of transactions is also very indicative — the higher the traders' bets, the higher the probability that their forecast is correct.
Right next to the volume graph, you can see a red-green scale with %. This scale shows what percentage of Social Trading users bet on the rise or fall of the instrument.
This scale is very easy to use. If you see that most traders are betting on growth, do the same. If you see that most traders are betting on falling — do that too. But keep in mind that this should be done only with large trading volumes and with a large number of open trades.
In addition, it won't be superfluous to first look at the traders' profiles. By clicking on a trader's icon on the chart, you can see general information about his trading success — his name, current strike, and his personal trading volume. If a trader's personal trading volume is close to zero and equal to zero, it's better not to repeat his trades, he's most likely a beginner.
Slightly below, under the listed items, you can see the largest assets in terms of trading volume and the leaders of trading in these assets.
This information can be useful if you are looking for a popular tool among traders, as we said at the beginning.
To summarize, the Social Trading feature on the ExpertOption trading platform is as promised pretty simple. The main thing is to carefully study all the data that we have discussed, it'll greatly increase your chances of earning a significant profit.
Watch a short video on how it works on ExpertOption: