Advantages of Forex Social Trading Networks

Advantages of Forex Social Trading Networks and What to Consider: Copying a Trader in a Network There is much information on the internet about how you can make successful forex trade online. You will also have information about which currency is bullish and which currency is bearish on the internet as you making forex social trading networks. The trading platforms have a lot of advanced trading tools the users have access to in finding pips in the market. In the last couple of years is a new feature available on some of the online trading platforms. It is called a Social trading network; it is a platform connected to the trading platform. It gives the traders possibility to follow other traders’ trade and even copying their trades. As it is social it is also possible to interact with other traders and develop trader experiences through the interaction. The major purpose of this article is to explain the advantages one can derive from forex social trading network and the need to consider copying a trader in the network. One of the advantages of the forex social trading network is the interaction between the social network and the trading platform. There is a small window on the trading platform with information from the forex social trading network and this information provides the trader with information about the recent trades on the social platform and it also gives details of the trader that is currently on top with a high win ratio. It is an advantage as the information from the social net is inspirational and gives ideas of which currency pairs to trade. If the trader wants more information about a trader he can click on the traders’ link and find the history of the traders and see how he has managed the trades he had made in the past. If he has managed the trades well he will be a valuable inspirational source or even a trader considering copying. In forex social trading network, copying a trader is allowed and the purpose of copying a trader usually is to gain profit. This is why you need to analyze the trader you are copying on forex social trading network. This analysis in forex social trading network is regarded as social financial analysis. Historical data as profit margin and latest trade figures are some of the data the forex social trading network analysis consist of and it could be for the last few weeks of trade data and the profit ratio n recent trades. As in regular Forex trading social trading has as well large potential rewards, but also large potential risk and it is in these trades also necessary to be aware of the risks. One way to minimize the risk is to analysis the traders’ performance and starts copying the trader with a small amount of money and then increases the money amount. In figures it could be 2 or 3 percentage of the investment capital on a Copy Trade. If the Copy Trade generates a continuous profit increase the percentage of the investment capital to a higher level.