Trading stocks through social media
We live in a world defined by high speed communications and an ever-increasing sense of a truly global economy. In truth, we have become inextricably linked to such technologies, and this trend is only destined to become more entrenched in our daily lives.
The financial markets are of particular relevance regarding this brave new world. Online Forex trading is a prime example of this movement. While there exist literally thousands of companies offering the novice and seasoned trader alike opportunities to take advantage of this electronic platform, the wise trader should understand some key concepts before venturing into such a marketplace.
Examine the right factors for the forex market
There are many trading rules when examining the Forex markets and these factors can ultimately determine the success or failure of one’s financial portfolio. While such variables are numerous in scope and effect, a few basic rules must be recognised in order to gain a fundamental knowledge of how online trading works.
With Forex trading, always remember that currency exchange rates and their relationships represent the backbone of any trading system. These rates are often affected by political and social events just as much as economic data. If we then combine this maxim with the simple fact of increased global connectivity, it becomes easy to see how fortunes can be made and lost in notably short amounts of time.
Secondly, there is no substitute for experience. Professional traders and financial gurus have built their fortunes on the foundation of trial and even sometimes error. All too often beginners plunge into the Forex market, lured by high returns and subsequently find themselves bereft of the funds they initially earmarked for trading.
Social media and trading combined
However, there are newer and more innovative sites which offer the best of both worlds; the ability to network with seasoned traders as well as open and close real-time positions. eToro represents one of these novel platforms. This site combines liquidity and execution of trades with a social media platform which gives every type of trader the ability to follow trends, catch up on the latest news and ask advice from other active investors. Indeed, such an amalgam of an electronic trading platform and social connectivity may take much of the guesswork out of online trading.
Additionally, unlike other traditional platforms the investor sets his or her entry levels. This is of particular significance due to the fact that during turbulent times it is easy to find oneself overly committed to a certain position. By opening a trade within a comfortable level, not only will the trader be able to limit any losses but much of the emotion and fear will be taken out of trading; allowing for more balanced and pragmatic judgment.
Both for novice and professional traders
Ultimately, the combination of a social trading platform may very well be a trend which will be seen on a greater scale in the months and years to come. Sites like eToro can be a sign of things to come for both the novice and professional trader. As social platforms are becoming an ever-increasing internet phenomenon, this trend is set to continue.