TRADER'S PICK
Social trading with RADEX MARKETS
agosto 30, 2024
RM SOCIAL is now live. Traders and investors can now come together on a dedicated platform and start their journey into the world of copy trading.To those unfamiliar with the term, copy trading is very straightforward. A trader, or provider, opens and closes trades as they see fit. Investors, or followers, then have the option of following that trader, which means their account automatically copies all those same trades. Once this arrangement is set up, no further input is required from the follower, everything is taken care of in the background. There are pros and cons to copy trading, some more obvious than others, which we will cover below.ProsThe major advantage of copy trading, and social trading more generally, is that investors can benefit from another trader’s years of experience without having to learn the ropes themselves. Decades of trading wisdom can be tapped into with just a few clicks. The financial world can be an intimidating one, with cautious market participants often finding themselves on unsure footing. Copy trading alleviates the investor of such responsibilities, delegating them away to more confident traders.Following on from the above, the performance history of the trader in question is a matter of public record. Profit, returns, drawdowns, the details of every single trade are there for all to analyse with a fine-tooth comb. Unsatisfied with your provider? Choose another. Choose ten. Develop a portfolio of successful traders.On top of the obvious time-saving implications of getting someone else to place your trades, an understated advantage of copy trading is that it can help to remove the emotional component of buying and selling. People make mistakes. Trading with a massive drawdown hanging over your head usually produces even worse mistakes.Of course, the advantages of copy trading are not limited to investors. With social trading, successful providers can proudly display their trading prowess, allowing them to attract ever greater followings and ever greater performance fees to match. Good traders are hard to find. Standing out from the crowd can be challenging without adequate exposure, a problem directly addressed by social trading platforms. Can’t argue with cold hard numbers.ConsThe trouble with entrusting someone else with your trades… is that you are entrusting someone else with your trades. The pivotal benefit of copy trading is also its biggest pitfall. You are relying on someone you typically do not know to generate profit on your behalf. Doubling as a disclaimer for a while here, there is no guarantee of financial success when it comes to social trading. Providers may well lose money, as will their followers. Risk does not go away just because it is in the hands of another trader.The second aspect worth addressing is the lack of educational merit to copy trading. Watching a craftsman has its benefits, but is no substitute for first-hand practice. Copy trading can create an over-reliance on others, which is self-evidently detrimental to one’s own development as a trader.Social trading with RADEX MARKETSWith RM SOCIAL, investors have a large degree of control when it comes to copy trading. The exact agreement between a provider and follower is highly customisable, respecting the wants and needs of both. The provider can set the performance fee, minimum balance, and even create an array of different offers for followers to choose from.Investors are awarded an even greater degree of freedom. Followers can carefully establish just how closely they wish to copy the trades of the provider. Minimum and maximum lot size, trade direction, volume scaling, as well as a plethora of risk management options are readily available. Moreover, investors have the option to close any trade as they see fit, or indeed unsubscribe from the provider entirely whenever they please.The relationship between trader and investor should be a mutually beneficial one and RM SOCIAL provides the fertile ground for such agreements to flourish.
LEER MÁS
#01
Spreads desde 0
#02
350+ Productos disponibles
#03
Hasta 1:500 Apalancamiento
#04
3 Monedas Base
#05
Su propio gestor de cuenta
#06
Asistencia en vivo 24/5
MARKET WATCH
RM NOTICIAS
