One way you can ease yourself into Forex trading is to utilise Social trading to take away some of the initial pain from the learning curve associated with learning any new skill.
When you are learning something new, even if you have done a tremendous amount of research, you will be stepping out into the unknown. This can be quite frightening and it is natural to feel a certain amount of nerves. However, similarly to the forex game, social trading platforms assure great benefits, that weren’t available just a few years ago.
1. You Learn From Professionals For Free
In the past it was almost impossible to find a trading mentor to learn from. Unless you were working at a fund or investment bank, your chances of ever finding a big time trader willing to show you their strategy was next to zero. With the rise of social trading you can now see exactly how profitable traders make their money – an invaluable advantage for an upcoming trader.
2. Your Money Is Working For You
Some beginners stick to testing their skills on a trading simulator until they can prove to themselves they are ready to risk their money. This means they have risk capital sitting around doing nothing. On the other hand choosing a trader to manage your money will be an educational experience in itself. A trader with consistent returns over a prolonged period of time with minimal drawdown is likely to take your money and multiply it.
3. Practical Examples Always Beat Theory
There are many educational pieces and videos all over the web telling you in theory how to make money. It’s nothing compared to seeing someone actually profiting from the markets with verified results. This will give you the conviction to cut losses and run winners, something that most beginners struggle with, because they haven’t seen it in action.
4. Start As Small As $200
In order to invest in a big hedge fund you often have to have extremely large amounts of money, as some buy ins run into the millions of dollars. With social trading you can get all of the benefits of having someone else manage your money without having to have enormous amounts of money.
5. Your Only Job Is To Check The Results
If you don’t have time to put in the effort into researching trades and following the data, social trading is the tool for you. Let a professional trader do the legwork for you, while you profit just the same as if you’d done the work yourself. Best of all, you can easily keep your daily job and just review the results at the end of every day.
6. You Don’t Need An Expensive Trading Consultant
The social trading interfaces nearly always have a blog section, which means you can not only follow the trade history of a superstar trader. You can actually talk to the person as well. Ask them questions about trading. Follow their forex twitter accounts. It will give you the confidence that you know exactly what they are doing with your money.