To many of us the term online trading or social trading is a conundrum, only to be spoken of in closed circles by math geeks. In reality, the internet has transformed this niche into a micro-cosmos of social networking where traders from all corners of the world can unite and share their experiences. If all of this sounds a bit too utopic you may be right. Online trading in general has proven to be one of the less reputable niches, and while some merchants and Forex brokers are totally regulated and legit, others have made a mockery of this business and responsible for giving it a bad reputation.
The Perceived Benefits
The benefits are seemingly endless. A great community of online traders supporting each other and profiting based on mutual insight, what could go wrong right? Well, while it’s true that there are quite a few people that have been able to translate this side-business into a full-time job, most people are not so talented. It’s important to understand a few basic concepts before you dip your toes into the proverbial waters. The first is never to risk more than you can afford, and the second is not to get emotional and only act based on numerical insights. That’s even before the strategies and trading tools start to kick in.
The Risks Involved
As is the case with all forms of trading, you risk losing your capital. You should know this right from the start, and you should also read the small print in the terms and conditions section because that’s where you will find the devil.
The Big Players
The big fish in this pond are Forex brokers like Etoro who have made a name for themselves in the niche. Other key players are the community leaders which are successful and have a large following. The rest are not as important.
If you are looking for a new and interesting way to profit from online social trading there are a few systems or platforms which you should definitely look into. One of these is Option Robot, which is an automated trading tool with a proven track record and a great reputation. As is the case with all systems, a grain of salt and a healthy dose of skepticism always go a long way.