Social trading is the hot topic in the markets these days and it simply refers to platforms or brokers where you can copy the trades of already successful and proven traders in a social environment.
The biggest and most popular of these platforms is without a doubt the eToro platform.
What is great about the eToro platform is that you can practice your trading on your own demo account while you copy proven traders with your real money account.
You can of course also copy traders on your demo account.
There is a new European directive that states that all brokerages must state the percentage of losing traders on their website.
While we have all heard the statistic that about 95% of traders lose money in the markets, it turns out that the number is actually closer to 80%, which means on average about 20% of traders are making money.
However on the eToro platform this number is right down to around 65%. which means that 35%of traders on the eToro platform are making money.
That is down to the fact that most people now realise that they can just skip trading themselves and simply copy proven and successful traders.
Here is a well explained video from Finance Illustrated on how the eToro platform works and how to go about selecting traders to copy.
Pretty straight forward with some of the pros and cons, but this is definitely a platform and an opportunity that you need to look into, as there are over 7 million users on the platform and with a bit of searching, you are sure to find some good traders to follow.
Here is another video from a guy called Thomas370 who is a keen eToro follower.
He has a very active YouTube channel where he details his copy trading journey on eToro and the people he is copying and why.
His YouTube channel
The only strong advice that we can give apart from starting with a demo account first, is to stay away from Cryto currency trading.
That is way too volatile and risky.
The beauty of this platform is that you can really manage your risk by copying the more stable and profitable traders and it also keeps you involved in a fun and less stressful way than doing the actual trading yourself.
You will need $200 minimum to open a live account and you can only copy a trader with a maximum of 40% of your account balance.
This is a good rule set by eToro so that no single trader can blow your account.
You can however copy as many traders as you wish and allot whatever percentage of your account up to 40% to each trader that you copy.