In former days trading was dependent on the locations of customers, onlinetradingplatforms and exchanges. Then the internet came along and made way for the online trading phenomenon. The advent of Web 2.0, Facebook and Twitter gave rise social trading. It is also the latest revolution of day trading.

In the same way that social media connects people from all over the world, social trading allows one trader to copy the trades of more successful trades from around the world.

Social trading has a number of advantages. Firstly, it allows for the free flow of information between individual investors. Knowledge is power. It also allows a kind of Cooperative trading. Individuals can work together, pool funds, share their knowledge and divide research among themselves to achieve a common goal.

In essence, social trading is the process through which one trader relies on another for information to make a trading decision. The collective wisdom of a thousand is better than one. It is a network from all over the world allowing people to share knowledge, views and trades.

Social trading carries a risk of capital loss.

Day trading
Trading leveraged products such as Forex and CFDs may not be suitable for all investors as they carry a high degree of risk to your capital.It is really important that you do not trade any money that you can’t afford to lose because regardless of how much research you have done, or how confident you are in your trade, there will always be a time that you lose.