Many people who are looking for ways to earn money instantly choose to invest in online forex trading which in essence is very easy to start but if they do not do sufficient research about the trade, they can end up losing lots of money.
In the past, there was always a portfolio manager, a broker or a market analyst who would assist you with forex trading activities; however, with the technological advancements especially the social media, traders are easily brought into contact with other traders. This has led to the latest emerging trend – social trading .
Social trading is a form of online trading that is based on what other traders or friends in your social network are trading in. This does not apply to forex trading alone. It applies to all forms of online trading including stock trading. Instead of relying on brokers or analysts, people are now relying on the successful traders in their social services. You have real time access to their information so it is very easy to follow or copy them.
Social trading can be referred to the new form of trading. Social networking has given people all over the world the opportunity to share their ideas and data. Traders have decided to use the same medium but instead of sharing personal or common ideas, traders will be using the social networking to exchange their thoughts and information on the latest currencies.
During the last few decades, there has been a tremendous increase in the number of online traders. There has also been an increase in the use of social networking websites. There are some companies that focus only on social trading in that these companies provide trading signals to traders. They also rate traders so that other traders can gave a general rating of traders.
Social networks have also made it possible for traders to rate each other. The better a trader is the more positive reviews he will have. Once people are able to trust other traders, they can make a lot of money from forex trading by trading with trustworthy traders. Social trading makes it much easier to trade online.