Social Trading Tech – What is a social Trading Website?

Social trading technology is … It allows
people to take advantage of the things which have come about with social networks… So, with your Facebook, and your Instagram, and the idea of people connecting and crowd-sourcing information, and evaluations. It’s taken advantage of that and used it for
trading, which is kind of obvious. Trading is something which is done by – it’s
done within a community – people buy and sell – information is kind of king – everyone wants
to know what’s happening. And social trading has become a way for people
who weren’t, maybe, financially trained, who didn’t go to business schools, and who didn’t
study investing to actually learn what trading’s about and be able to do it. Obviously, in the past you had to go to, you
know, you saw them on, you know, films from the 80’s and stuff – this big sort of pit
full of people saying, you know “Buy!” and “Sell!” and taking orders and buying pork
bellies and orange juice and gold futures. And now, you know, everything’s done digitally
– you can do it off your computer, from home, and social trading is allowing people like
me, who aren’t financially trained to just take advantage of the crowd’s understanding. There’s also copy-trading which, you know,
allows me to automatically copy the trades of really very experienced and clever and
good investors. So, social trading tech is usually about websites,
like the one I use – Etoro, but there are many others – to… you log into these websites
and it facilitates, like Facebook does – you can browse through profiles… Here look, I’ll show you… So, you can go to ‘Copy People’ here, and
start to browse around and if you look at it, it looks a lot like, you know, what you’re
used to – profiles really. This is all social trading technology – it’s
using a social networking framework to facilitate trading basically. So I can click on one of these and I can look
at their profile. So the traders have different profiles – you
can see statistics, how well they’ve done… You can see their risk, you know – how risky
this person is. You can talk to them, you can see their feed
– who’s talking to who… “Link on your facebook..” you know, people
adding people on social media, you know… Here’s a little bit about the person. And, you know, a little introduction – see
what they’re trading, see charts of their progress – how well they’re doing, how well
they would have done over time. So, it’s using social networking but telling
you specifically about traders… and so you can find one – some of these guys are professional,
and some of them aren’t – some of them just are naturally kind of talented individuals
who are using platforms like this to really become money managers – they’re taking the
place of the sort of historic money manager guy with the red braces and the big phone
in the 80’s and if you’re naturally good at this – at the maths, at understanding the
markets, at trading – at buying and selling, you can become a money manager on one of these
social trading platforms. On Etoro it’s called a ‘Popular Investor’
and people put their money with them and say “Right, you know what you’re doing, you trade
for me.” And, you know – for free … So that’s amazing. So that’s basically what social trading tech
is – I think it’s about the frameworks that people are using – the websites which are
allowing people to become part of social trading and copy trading and sort of take control
of their money and, you know … In a familiar environment. People are familiar with social networking
– with Facebook … So they know how it works. If you look around here, you’ll see that all
the buttons – I mean we know what these buttons will do – buttons are on the left, you can
invite friends, you know, you can blah blah blah blah blah. I’m going to go back – “withdraw Funds”, there’s
guides, help, you can trade the markets – you can have a look at the markets… You see what I mean, you can check on different
stocks, different stock exchanges – the beauty of social trading is, I believe – for me it’s
in copytrading. It’s in the idea that I can go to these people
and search through who’s good, and literally set my account to automatically copy their
trades. That’s unbelievable – that’s never
happened really before in humanity… It’s only because we have these amazing websites
now, and very fast internet connections and everyone’s connected all over the world that
you can get this sort of information from a crowd… That’s it.

3 thoughts on “Social Trading Tech – What is a social Trading Website?”

  1. Watched your first one earlier today. Informative and easy to follow. I am learning about eToro as no other way. Thanks. Will watch more.

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