Social Trading: Different Types and Styles

Thanks to the advent of the internet and social media, the world of Forex trading is no longer solitary as it used to be. In the early days of online trading in Indonesia, traders had to rely upon whatever content that was available online to participate in their trade. Even Forex trading strategies had to be forged from scratch with no input from Forex experts as there were no facilities for the same.

However, today it is a different story altogether. With high-speed internet and several online Forex communities that it bred in the process, traders can get access to a wide range of support from the online community. This trend, also known as social trading, is vibrant and thrives on the sheer number of traders who adopt it. There are several styles in which this is practiced. 

Popular types of Social Trading platforms

1. Signals or tips

Several online sources provide signals and tips based on reading the markets. These websites are usually operated by seasoned forex enthusiasts and brokers who predict trade signals for fellow traders to make use of them. Traders who use such services need to be wary of the accuracy of the information and tips that they receive on such platforms as they may not be 100% accurate.

2. Copy Trading

It simply refers to the copying of others’ trading style. For novices who are still new and do not understand the market in its entirety, this style helps them follow the actions of expert traders and make benefit of their expertise. This activity helps them realize profits by leveraging the knowledge of experts. However, it does not guarantee success in the long run.

3. Forums and profiles

Several forex platforms that are offered by reputed online brokers in Indonesia like WesternFX offer traders access to forums where they get to meet their fellow traders online and interact with them. This helps traders exchange their ideas, discuss strategies and make use of different tools, tips, and forecasts.

4. Auto-bots

While Auto bots do not fall strictly under the category of social Forex trading, they are beneficial as they help traders trade without the requirement for direct interaction with others and also remove the human element from trading. This makes using Auto bots effective. Auto trading usually involves traders setting various criteria for the trading activity and letting the platform execute the trade automatically without human intervention. This makes it desirable.

The best way to engage in social trading is to hunt for the best Forex brokers who offer traders access to the right tools. Partnering with reputed firms like WesternFX can help traders gain access to the best Forex trading conditions in Indonesia.

How do seasoned traders distinguish themselves from the rest?

The Forex trading scene in Indonesia is among one of the most vibrant in South East Asia. With several online brokers offering competitive spreads for Forex and low-cost trading accounts, the number of traders in investing in Indonesia stock market and Forex is scaling new heights. Backed by access to free Forex demo accounts, a new armada of part-time investors is entering the scene. In such a competitive scenario, it is imperative for Forex traders to establish their identity and scale new heights without being lost in the clutter.

So, how do novice investors master their Forex trading strategies?

Well, the shortest answer to this question would involve two words- Discipline and Discipline. 

The most seasoned of Forex traders attain their status by adhering to a few foundational rules that need to be practiced for one to able to survive in the long run. Following these rules can award traders with a consistent performance.

The 10 Foundational rules:

1. Trade only when the timing is right. Look for the perfect trade setup and lay in wait for the market to go in your direction.

2. Develop a system that is practical, strong on fundamentals, and backed with plans for contingencies.

3. Do not lose confidence over a losing position. Believe in your calculations and wait for the market to turn around

4. Do not express overconfidence after tasting a string of successes. Such an attitude may make you overlook market indicators and cost dearly.

5. Never trade on instincts and likely epiphanies. Always open positions based on signals that you see on the charts. Analyze them thoroughly before investing.

6. Set a Stop-Loss as you open the position. Do not delay it when it is about to be triggered as this might affect your trading pattern.

7. Stick with a trading system and think twice before abandoning it for a newer one. Scouting incessantly for newer systems on the market do not assure better results.

8. Do not risk more than what you can handle. Set a risk limit and do not exceed it.

9. Avoid greed to maximize profits. Learn to get out of a trade that is still going strong.

10. Do not take a position just because everyone else is taking the same. Do your research before opening a position even if the market is in favor of the position.

Adhering to such rules with discipline is what distinguishes a seasoned trader from a novice. Discipline in trading refers not to the seriousness that one brings to the process but the sincerity with which he sticks to the rules. To master these rules and develop a disciplined approach to trading may not be easier for beginners as the lure for money distract them from their final goal. Partnering with reputed online brokers in Indonesia like WesternFX can help traders stay focused and prevent them from going astray.