Most people are scared when they hear the term “financial trading”. This is not surprising since we are all convinced that you have to be a financial specialist to be able to invest in financial markets.
To become a financial specialist, you have to be associated with finances for decades and dedicate a considerable amount of your time in order to succeed.
However, today we are talking about a completely different story where you can easily invest in finances without the fear of financial loss or that you are wasting your precious time.
Binary Options Trading Become Popular Investment Method
The reason why binary options trading has become so popular is because it is accessible to everyone and it doesn’t require basically any knowledge about financial markets. With binary options, everyone has a chance to make profits and traders are not required to invest more than $200. All types of people started to trade binary options: students, traders, financial specialist and people that have no clue about trading financial markets.
Another reason why this become such a popular investment method is that you don’t need to have millions to start trading. Traders can invest a reasonable amount of money, depending on their financial situation. Most binary brokers welcome traders to start trading from $200 to $300 and these numbers have become the standard investment amount in industries.
Binary Options have Evolved
Since the world is constantly changing, all industries are changing with it. We will focus on a financial market where traders are offered to invest in many different options. At the beginning of binary options, traders could place trades manually which was much harder than today. Manual trading with binary options means that traders had to learn about trading to be able to be successful. Learning includes reading charts, predicting and calculating the movements of certain underlying assets, being able to isolate emotions during trading process, understanding the volatility of specific assets and much more factors.
During the last few years, the market opportunities have changed and binary options implemented a new way of trading for its traders. By creating specialized binary robots and financial algorithms, binary options have opened the door to many people who couldn’t invest in this industry before.
Binary robots are still a very attractive way of a binary investment, but there is another brilliant technology that provided more options to its consumers – social trading.
What is Social Trading?
Those who use social networks can guess that social trading or copy trading has something in common with social networks – and it has. Who would believe, that you could profit from copying trades from another trader through a social network? If someone talked about this investment method in early 2004 when Mark Zuckerberg introduced famous Facebook social network, all of us would say that it couldn’t work.
The same thing we can say with other popular networks that people use almost every day; Instagram, SnapChat, Twitter etc. what people do on social networks is communication and the same thing has been applied to social trading networks where people share trading decisions of others, follow them, copy their trades and communicate with each other.
Social trading enabled traders to make a decision on which trader they will follow, according to their results, trading strategies, preferred assets and many other factors.
What are Social Trading Benefits?
We need to point out that trading with binary options includes a certain amount of risk as we talk about trading on volatile markets. There is always room for improvement and trading with a certain binary robot or on a social network can improve your trading results more than you trade manually.
The biggest benefit of social trading is the security of trading.
Social trading networks include trading gurus – people that have many years of experience and trade with their own trading strategies. They don’t need a mentor that will teach them how to trade. Trading gurus usually have excellent trading results and they are mostly specialized for certain assets. If you are a binary newbie, it is recommended to “follow” some of the traders that are on the top of the trading list.
Trading newbies can communicate with trading experts and gather important information about trading. By combining your personal knowledge and experience of others you can become a successful trader.
Another benefit of social trading is that traders make friendships while they trade. As we have mentioned earlier, there are various traders that use social trading networks – trading experts and trading newbies. Since trading binary options often resemble a mentor, traders usually become friends and build strong relationships. Those who are experienced teach those who need advice, so this makes excellent combination and result with higher profits.
What is the Difference Between Social Trading and Copy Trading?
Both terms are very similar to each other but they are not the same. Traders who are serious traders understand the difference between those two trading methods. Things that social trading and copy trading have in common is that enables following other traders but the difference is that each of those two has a different manner of placing trades.
Social trading represents a social activity provided by many broker trading platforms. Those platforms provide chat rooms and forums where traders are able to discuss trading strategies, trading indicators, different instruments and similar.
The platform enables traders to follow each other and to observe his strategy. Social trading doesn’t demand a high level of trading knowledge because traders are welcome to pick most profitable and successful traders on the certain trading network.
Copy trading can be compared with copy-pasting because it basically let traders copy other traders trades. Like on social networks, traders can follow traders by several factors for example number of followers, total profit, which assets he trades etc.
Trading binary options offer numerous trading strategies and tactics. Social trading has become one of the trading possibilities that is interesting and user-friendly for those who are not feeling confident to manually place trades. This new binary method is considered as a great initiation tool that helped thousands of traders to make sustainable profits.