Social trading has become very popular over the last years. Let's look at some of the opportunities and risks related to it.
Advantages of Social Trading
- You can interact with and learn from the knowledge of experienced traders.
- You can get almost the same results as experienced traders who allow you to copy their trades.
- You don't have to pay the typical management fees of mutual funds.
- As a top trader you can benefit from generating profits for your followers, first monetarily (you get a reward usually) and secondly by gaining reputation and even job offers.
Disadvantages of Social Trading
- You need to take a more active role with regards to having strict criteria for choosing a top trader (or lead trader).
- The fees of social trading brokers are usually higher than those of brokers where you trade yourself.
- Only the most popular stocks, currencies and indices are available for copy trading.
What you will learn in this course:
- How to pick a top trader
- How to build a portfolio of traders
- Opportunities for followers and top traders
- How to make money from your trading skills