Author: Eduardo Montero
Last Updated on March 30, 2022
Whether you are just beginning or you are a seasoned Forex trader, it can sometime be difficult to prepare an efficient and lasting trading strategy. In fact, it is necessary to adapt to new market conditions to maintain profitable performance.
To resolve this problem, it is now possible to benefit from other traders’ high performance using practical advice offering a strong profitability without the need for any online trading experience. To understand how this trading method works you will find here some explanations and details on social trading together with innovative features in this sector.
How can other traders help you gain money?
On the Forex, as you certainly knew, there are several categories of traders, each of them showing different results, sometimes with major differences. To provide you with a better understanding we will here broadly distinguish between experienced and beginner traders. It seems clear that traders with a lot of experience are more likely to more precisely determine the future trends that will affect currency pairs, and thereby, accomplish more profitable investment on a short term basis.
For the beginner traders, the first trading months are often more complicated and it is not unknown for some to suffer severe losses making it more difficult to maintain their long term positions.
By analysing this difference, one can conclude that if the more experienced traders could give trading advice to the beginners that would help them to make profits quicker.
But the act of accessing the details of the experienced investors’ trades can also represent a very interesting way of learning. Although one can learn from one’s mistakes, one can also learn from the success of better traders. By closely following the strategies implemented by these seasoned traders, little by little, you will understand the logic behind opening or closing one position or another or even understand the consequential elements of the implementation of one order or another.
The other traders can be an important starting point on the Forex, but it also enables other traders, even those with great experience, to follow others with the objective of learning information and even improving ones techniques.
How to follow the other traders? The tools at your disposal
What we call “social networks” appeared fairly recently and, to summarise, represent the exchange of information, the responses and advice exchanged online between traders. Accessing information is indeed much easier now than before when faxes and mail were the principal methods of communication. In fact, we have seen various sites and forums develop with the Forex as the principal subject and on which traders come to share information.
But more recently, certain brokers, such as eToro, decided to use this social networking to create specific tools allowing members to both see, follow and even to copy the strategies of other more experienced traders.
Indeed this is what eToro’s OpenBook offers to all platform trader members. You can see the trade details of other members and choose to follow or to copy the strategies of those that you consider to obtain the best results. In this manner, you can make immediate benefits and also limit your risk while teaching you in a practical way.