How to monetize social trading through social investment network
Social trading has lowered the threshold for investment and trading online. Through social investment network can keep up with what other traders trades, and also automatically copy their trades.
When doing social trading, so you do not need to know anything about the financial or trading at all. It keeps with some simple logic.
Is it easy to make money in social trading?
Theoryit is very easy to monetize social trading:
For a trader who has a positive trend, ie a person who has earned good money by trading (bought and sold) securities (such as shares, currencies or other securities).
Practiceis still not quite that simple.
There are in fact so no one quite knows what the future brings. The implications of this truth is the one that has managed to make a profit in the market for many years in a row, is not guaranteed to make money in the coming year.
Other hand, there is also something called Probability calculation.
What's more likely:
- A person who has beaten the market and had a positive return of at least 50 % each year, is going to get a positive return and switch market in the coming year?
- Or: A person who has only lost money year after year, to suddenly start making good money in the market?
Understand this, and you know everything you need to know about social trading
You need no skills to succeed with social trading. You have no understanding of finance or market.
The only thing that is absolutely necessary is to be reasoned through to some very simple things: Find out what people are able to get the highest return on their portfolios, and then copy these people. More difficult is not it!
Statistics, there are plenty who are already succeeding with the greatest probability of success market in the future as well. Nevertheless, it is a source of uncertainty, and even if you copy the portfolio of the world's top investors, you are not guaranteed to make money.
In the long run however, it is a hope. If you always follow those who are successful over time, you will probably be able to make money. Uncertainty is often more related to the changes that we see from day to day and week to week. As we extend the time horizon and begin to see the months and years, so it pops up a pattern that more reasoned it would be logical to assume:
Those who have served well and achieved good returns in the past, will continue to serve well in the future. There are exceptions, but this is the pattern.
Do you understand this, then you understand what you need to succeed with social trading.
What social trading is and what it is
Social trading is little to invest in stocks or currency. Social trading is more about investing in people. You put your money on that: This person think I'm going to get a good return on his portfolio in the coming months or the next year.
Social trading involves collecting many traders and speculators (like from around the world) to a large investment network. Together can we accumulate knowledge and make better investments.
You can also choose not to invest or trade on their own, but only copy others' portfolios. A simple trick is to copy only those traders who have had good positive returns earlier, and most likely they will continue to do well if history dictates it.
How to start social trading
There are many good social investment networks to choose from on the internet.
THe largest social investment network are typically your safest option. Size is not in itself a guarantee of quality, but the number of traders means a lot to what your options are.
There are many extremely talented traders who use social trading networks and they can copy, automatic. In practice it means that you set aside a certain amount (for example $ 10,000, or even $ 100 if you're careful), and this money is used to copy a particular trader. Every time this trader makes a purchase or a sale in the market, the same trade is conducted on your account without having to lift a finger.
Let's say he uses 20 % of your portfolio to invest in a currency or a stock, and given that you have dedicated $ 100 for copies of this trader, you will then be exposed with $ 20 in the same stock or the same currency pair.
Social trading can be easy
You do not need know anything about finance, stocks or currencies. The only thing you must understand is that you can copy fellow traders, and when it pays that said to copy the ones that you assume will be able to make profitable investments in the future. It's that simple!
With social trading networks you can automatically copy someone else 's. Choose any trader among millions of traders, and then when a trader who has made profitable investments in the past. History has a tendency to recur
There is never any guarantee that you will make money on this, and although some have earned good money year after year, there is no guarantee that success will continue, although it is still likely that they will be profitable in the future.