What Is The Difference Between Auto Trade Copier And Social Trading?
Online trading is becoming an increasingly popular trend. Experienced traders have developed an extensive understanding of the forex trading world, but they acknowledge that it is a dynamic world that calls one to be adequately equipped to adjust to the changes that present themselves. Still, beginners are finding themselves exposed to a new realm of trading that they know so little about, yet they have to try their luck in the profitable industry. The bottom-line is that traders have to find ways of maximizing their profits. That is where online trade copier and social trading come in.
These two forms of trading are valuable resources that help traders to get the information and resources they need in order to improve their chances of being successful in a very competitive market environment. Knowing the difference between the two is important in order to identify that one that suits you the best as a forex trader.
What is Social Trading?
Are you a beginner trader and you’re looking for a way of trading that will help you get the best and optimal trading returns? Social trading is a form of trading that allows you to join a network of traders through which you can learn from each other. Through social trading, traders are able to invest on the basis of what they learn from the networks they create in different social platforms.
Essentially, you get to choose the traders you would like to interact with for trading purposes. They could be your peers or advanced traders. It is through such a platform that you’re able to network and share technical information and analysis on how you can improve your chances of gaining maximum advantage from your trades. As you already know, the forex trading market is dynamic and technical in a massive way. It requires one to learn as much as possible and be as knowledgeable as possible in order to increase the chances of profitability.
One of the advantages that social trading allows traders to enjoy is the minimal amount of time it takes to analyze a market. Since it brings together different traders, it is possible for a trader to get an in-depth understanding of the market from the analysis of other traders. This allows one to make trading decisions faster. It is for this reason why it is a preferred form of trading for a beginner trader who does not have a good understanding of the market. By learning from other traders who have been in the industry longer, novice traders get the benefit of working with peers who can offer them the support they need to get started.
However, one thing that traders need to be aware of when doing social trading is that the information they receive. They should be prudent when using the information to make trading decisions. It is possible to use data received from other traders and end up making serious losses in the process. Therefore, the best thing to do is to take time to consider the data you get from your networks in order to make an informed decision.
What about Auto Trade Copier?
Unlike social trading that has a social element to it, auto trade copier does not have such. The fundamental thing here is that traders are copy the position of experienced and successful traders. In this case, traders do not network with one another to learn on the best strategies of trading. Rather, traders opt to copy the positions of traders they have identified as profitable so that they can be successful as well. This is where the auto trade copier comes in. This is a software program that allows traders to copy traders and trades from different accounts. If you’re a trader and you’ve identified a trader who is doing well in the forex market, you use the auto trade copier to automatically copy their strategy.
While social trading requires a trader to fully participate in the analysis of the market, online trade copier does all the hard work for a trader. It is a good trading option for people with limited time on their hands to engage in trading decision-making. It is also a viable option when you want to mirror the success of a profitable trader. If you identify a trader who is making profits on a consistent basis, you can use auto trade copier to reproduce their success. This is different from social trading. In social trading, you only get ideas and strategies from your network of traders but no one to copy. The decision on how to trade will only come from you.
Auto trade copier is for traders who have a mindset of investing. They just want to put their money in the hands of a successful trader and hope that they will mirror their success. This is not the case with social trading. In social trading, traders have a trading mindset. They want to learn as much as possible in order to make informed trading decisions. For a social trading trader, it is more important for one to get an idea and clear picture of what happens in the market and the prevailing market conditions and then go ahead and trade.
Having known the difference between auto trade copier and social trading, you now know the kind of trader you would want to be. If you’re a new trader wishing to learn the tricks, strategies, and best practices in the forex trading world, social trading is a great platform for you. However, if you’re a trader who wants to replicate what successful traders are doing, auto trade copier is the best way for you.
The bottom-line here is that forex trading is an ever-changing and dynamic environment that requires one to be adequately knowledgeable and skilled in order to be successful. This is possible if you’re connected to a form of trading that gives you relevant information and monitors trading effectively. Both of the above-mentioned are feasible forms of trading, but you have to identify your needs so that you go for the one that suits you the best.