Types Of Traders
There are some typical styles in social trading. I prefer to make a difference between professional traders and private traders, since professional traders normally have their own organization or company behind them. This article is meant for private traders. Most of them are trading alone or in a group, but they have their own account and trade on their own risk.
The common private binary options trader is a trader that makes his own moves, decides to enter a trade or not by his/her own set of rules and indicators. This may be a common style, using common indicators and tactics, but also an own developed style with personal rules, indicators, price action or what ever.
You also have typical ‘followers’. They follow signals and sometimes even let others do the trading for them. These are merely beginning traders, looking for easy money and often with a gambling mentality. There will be serious signal followers too, but most serious traders find out the hard way that it’s better to learn trading themselves.
Learning to trade
As soon as newbies find out they’ll have to do some work on their own, they start reading articles and try out several ‘golden mountain’ systems. This is a phase most traders will go through. It’s part of the learning process. Smart traders will only use demo accounts, but huh, let’s be true: we all are eager to try live…
Since trading can be a lonely business, it’s sometimes hard to learn. There’s a lot of questions and you need trustworthy answers. It can take a lot of time to find a place with answers, in a world that’s full of people who want to take advantage of your lack of experience. Scammers and shady affiliates are hunt for you so it’s difficult to find the trustworthy answers. This is where social trading comes in.
Social trading is a very useful way to grow in knowledge. Interactions with other traders can sharpen your focus and also enhance your joy in trading. Being an active forum member has a lot of positive effects. You learn much faster, get fast responses to questions and can find new visions and idea’s to adapt in your own trading. It’s a key to learning.
I have been active in a poker forum for eight years and in binary for just over a year. In that time I have seen a lot of players and traders becoming professionals by also being active. Asking opinions about moves, learning from analysis from other players and supporting each other has helped them to grow much faster than when learning alone.
Support by other traders can help you through the rough times too. They will give advice, can look at your trades to find mistakes and can get you on your feet again after a big downswing. This is a very underestimated part of being active on social trading. Try it and you’ll find out!
Social trading can be a boost to your learning curve and can be a safety net in rough times, and don’t forget: it is fun too!