In which assets can you invest via social trading?
If you opt for social trading, just know that it gives you the opportunity to trade on a wide variety of financial markets. Here is a list of the different types of assets in which it is possible to invest in social trading:
Forex : Forex currency pairs are the most popular assets for social trading. Some of the most traded currency pairs include among others.
ETFs : Exchange-traded funds (ETFs) are also popular in social trading. ETFs provide exposure to a specific market or sector, making them an ideal diversification tool for investors.
Stock indices : Stock indices, such as the Dow Jones, and many others, are very popular assets in social trading. Investors can invest in a specific stock index to track the performance of the overall stock market.
Stocks : Stocks are also common assets for social trading. Stocks of large companies such as Netflix , Facebook , Google , Apple and others are popular with investors.
Commodities : Commodities such as gold, silver, oil, natural gas, copper and others can be traded using social trading. These assets are popular for their growth potential and ability to hedge against inflation.
Cryptocurrencies : Cryptocurrencies, such as Bitcoin , XRP , Ethereum and others are popular assets for social trading. Cryptocurrencies offer high growth potential, but are also associated with high risk due to their volatility.
Social trading, advantages and disadvantages
social trading pros and cons
Although trading is a trading practice that allows beginners to thrive in the market, it still comes with risks. From the above, the conclusion is clear: community trading has advantages and points for improvement.
The Benefits of Social Trading
We can never say it enough, copytrading is very advantageous for young traders. Here are the benefits:
- Way to learn trading easily
- Ability to quickly generate profits
- Boon to improve your trading experience
- Acquisition of knowledge on the financial markets
- Ability to interact with traders all over the world
- Access to reliable information on dedicated platforms in real time
Social trading: the disadvantages
- Social trading is not free from disappointment. Here are some weak points of this business practice:
- Execution risk in the event of non-liquidity of traded assets
- Unable to place orders on a discretionary basis
- It all depends on the technology and performance of the copied trader
- Risk of losing part or all of the capital in the event of unsuccessful trades
Start social trading
Who is Social Trading for?
Social trading is an online trading method that allows investors to follow and copy the strategies of other more experienced traders. This practice is intended for all types of investors , whether beginners or experienced.
Beginners can benefit from social trading by observing other traders’ strategies and copying them to avoid taking unnecessary risks . Indeed, social trading allows them to follow the most successful traders on a given platform and replicate their trading strategies with a simple click.
More experienced investors can also benefit from social trading by sharing their own strategies and getting feedback and reviews from their peers. This allows them to make more informed trading decisions and hone their skills .
Social trading is particularly suitable for investors interested in scalping and day trading. Scalping involves making small profits on quick trades by opening and closing positions within minutes . Day trading, on the other hand, involves opening and closing positions on the same day. Either way, social trading can help investors find profitable trading opportunities in real time by observing the trades of experienced traders in these areas.
While it is true that social trading makes it possible to model the investment strategies of other investors , this is not a guarantee of making gains. You are not certain to generate profits in the event that the copied trader has not carried out a deep analysis of the financial market.
To avoid total disillusionment, it is imperative to use technical analysis to spot the right time to trade financial assets. This means that the signals of the social trading platform decipher the financial markets and produce relevant analyzes for you. By considering the trading signals , it is obvious that you will adapt the trading technique to your requirements.
Get started in social trading
Your capital is at risk. Other charges may apply. For more information, trading.
How to become a copied trader?
become a social trading trader
Becoming a copycat trader on eToro is not an easy task. But thanks to a unique feature, the eToro Popular Investor , this has become more accessible. This program brings together seasoned traders who have achieved success on the social trading platform. These seasoned investors receive special benefits for their hard work on the platform.