In times past, trading and investment was something limited to a relatively small number of people with professional qualifications, that is certainly not the case anymore. Thanks to the rise of online trading and investment platforms, more individuals than ever are taking direct control of their financial lives. But beyond access to trading and investment platforms, what are the technologies and resources lowering the barriers that have traditionally prevented beginner traders from getting a start?
One of the main things that have made online trading and investing so approachable in recent years is the ease with which you can access information about trading. For example, thanks to the rise of online publications and other resources, it is now easier than ever to quickly access all the forex trading news you might need to help you make trading and investment decisions. Similarly, trading guides are also easy to access. And with a simple Google search, you can pull up hundreds, if not thousands, of in-depth guides to help you get started trading. These range from the complete beginner to the more advanced trader and offer you tips, tricks, and guidance no matter what your skill or experience level.
Beyond access to information, several tools have made online trading and investment much more approachable. One of the most important of these from the perspective of beginners is social trading. Social trading is, essentially, a way of enabling traders to copy and execute their peers’ trading strategies. Most often, it involves following successful traders on a particular trading platform and using a social trading tool to copy the trades they make for your own portfolio. It is called ‘social’ trading because it involves using a ‘social network’ to find other traders and then to copy their trades. Social trading tools copy their trades in real-time and accurately match the trading strategies of your chosen peer.
Social trading is useful for beginners; it gives you unparalleled insight into the successful trading habits and strategies of successful traders. While previously, this sort of direct insight would be difficult to access, social trading makes it incredibly easy to access this information. It provides valuable insight into how trading strategies can be deployed and utilised in real-time by beginners. In this sense, social trading has benefits for beginners that stretch far beyond the monetary gains you might make.
Beginners should note that social trading is not without risks and is certainly not a get-rich-quick scheme, despite being a good way of increasing your earnings online. The most significant difficulty you face when social trading is to find traders whose strategies you can trust. That is often easier said than done, as not only are there thousands of traders you can potentially follow on these platforms, but beginners will also have a hard time identifying who are and are not worth following. For this reason, while tools and resources like social trading have done a lot to lower the barriers to entry for new traders, they have not entirely gotten rid of them.