February 3, 2016
For the past several years, social media has been all the rage, and for good reason. It allows family and friends from every corner of the world to keep tabs on each other as if they were just next door. However, that's not the only thing social networks do these days. They give people a way to play games together, video message each other, and far, far more. However, it seems as though the social environment and the technology behind it is changing once again. There's a new social network concept that is rising in popularity incredibly quickly. That concept is called social trading.
What Is Social Trading?
Social trading is an entirely new concept. In fact, I first heard about the concept myself just last year. Essentially, social trading is a social network platform designed for traders, as the name would suggest. This new technology combines several features of the average social network like being able to follow, message, and communicate with people around the world, with features you'd generally see on a trading application. Using this new technology, traders not only have a way to make friends, but can also help each other profit. Experienced traders have the ability to share how they earn the money they earn and beginner traders have the ability to tag along on the strategy to reduce the incredible learning curve associated with trading. It's a match made in heaven.
Why Social Trading Is Becoming So Popular
At the moment, there are only a few social trading websites out there. In fact, the only platforms that I know of off of the top of my head are CopyOp and Etoro. Nonetheless, these websites are becoming incredibly popular. So, why are they growing in popularity so quickly? There are a few reasons…
- Reducing The Learning Curve – Trading successfully is not the easiest thing in the world to do. In fact, to become a successful trader, there's an incredible learning curve that you'll have to make your way over. However, social trading greatly reduces the learning curve associated with financial trading. This is because beginners have a way to copy the moves of professionals and ask them questions in the process to see why the moves that are being made are good for the overall portfolio. Believe it or not, this functionality has the ability to shave months, or even years for some, off of the learning curve!
- Avoiding Excessive Research – Without social trading, finding strong trading opportunities takes quite a bit of research. However, social trading platforms use a technology that picks up on what the popular trades are. This means that finding a trending stock, commodity, currency, or any other asset is a relatively simple process. Let's face it, even the professional traders can use a hand when it comes to research.
- Making Friends With Like Interests – I'm a professional trader myself, and I have to say, the industry does get a bit lonely. After all, I work from home and when I talk to friends about what I do, I'm usually met with a mix of blank stares and snarky remarks. However, I've found social trading platforms to be a great way to have an intelligent discussion with other like minded people with regard to what's going on in the market. For me, this is absolutely priceless!
Social trading is an incredible concept that meets a need that many traders didn't even know they had. This incredible technology is yet another example of how technological innovation shapes the way we live, and will likely continue doing so for years to come!
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