What are Trading Signals?
With trading signals, you receive notifications which are like suggestions of what to trade, when to enter or exit the trade and what stop loss or take profit orders to implement. You may receive them by SMS, email or through a dashboard.
Of course, it’s important to use a signal service that gets more successful than unsuccessful trades. However, like all things related to trading, there is always the risk of losing your funds, as no one can read the future. Usually Signals are generated on the basis of a variety of technical indicators, especially the strong signals.
You can of course create your own signals, by using technical analysis and implementing studies and indicators on to your trading charts.
Social Trading Vs Copy Trading
Copy trading is considered a form of social trading, but the two trading methods have some differences.
Copy trading ties up your account with another trader in that their positions are automatically replicated in your account. If they turn profits, you win; and if they lose, you lose. Copy trading is more passive because the trader does all the work you are copying, and in most cases, the process is entirely automated.
However, some platforms and copy trading apps are semi-automated, but you are only limited to deciding which trades you wish to copy. Copy trading is generally ideal for beginner traders as it allows them to trade way beyond their level of experience or expertise. Some of the significant downsides of copy trading are that it inhibits learning, and traders can suffer huge losses if they follow unsuccessful traders.
On the other hand, social trading is a broader strategy that incorporates social media into investing. The focus is on the community, with traders able to interact and share and get notified of each other’s trading activities.
Some of the features that a social trading platform may include message boards and chatrooms to share trades and talk about strategies, customizable social news feeds that update investors on the activities of their favourite traders, as well as comprehensive access to trader statistics, such as portfolio, risk score, their personal news feed, as well as fail/success ratio.
Social trading allows investors to learn and contribute to the community, and it provides access to numerous investing resources. However, it is more engaging and time-consuming than copy trading, and investors may get caught up in the ‘social media’ aspect and miss out on great opportunities in the market.
Both social trading and copy trading are useful trading strategies. It is, however, essential to select a strategy that suits your trading needs and preferences at any given time. global market offers a range of solutions, including a social trading app and copy trading platforms. It is vital to select the most comfortable one that meets your trading needs and preferences.