Social trading a growing trend among on line traders. The practice did not start with forex but has been embraced by that industry, and is now spilling over into more mainstream forms of investing. It is without a doubt one of the best, if not the best, ways for independent traders to keep in tune with the market. I know that I for one have benefited greatly from it. Not only is there a wealth of information you get the benefit of others experiences, insights into news and information from other savvy traders and you might even get turned on to a great new investment or trade.
What is social trading though? By name it may sound as if you are trading in a group but that is not the case. You trade, and you are part of a group, but social trading is the group and not the trade. There are many sources but at heart the central pillar of a social trading community is a forum. Forums are places where traders of all types can come together to discuss analysis, bounce trade ideas off of each other and to benefit from a community. Community is an important part of life in general, not just in trading, because it is where the individual finds support and strength.
How has social trading helped me? In too many ways to count. Most importantly it has given me confidence in my trading. If I make an assessment or a trade idea in a forum I have to stand by it, and take any criticisms I may get.... and I get a lot sometimes, especially when I am wrong. Another way in which community trading has helped me is with focus, and by focus I really mean money management. I have learned to stick with my rules to the point I don't even think about it any more, and have discovered a hidden benefit. I don't care if I lose. I know I won't lose too much, and that I win more than I lose so all I have to do is focus on making good trades.
You can click here to learn more about social trading the financial markets and how it can help you be a better trader.