Social trading is here to stay
Online collaboration tools and other online platforms for communication have really taken flight over the past five years. For that reason, it’s no surprise that specialized social platforms would start springing up to fill the demand for traders seeking a social media like environment in which to collaborate, communicate and learn from other traders around the globe.
Not only have these tools really simplified communication among traders, but they have also opened a new door into the global exchange of knowledge and learning around the latest and best trading ideas. Here are three benefits of getting involved in a social investing platform right now.
One of the greatest benefits of these social trading platforms is the ability to learn by watching what other traders do as they execute trades, monitor their portfolios and communicate with others about their strategies, ideas and analysis. This is a tremendous help for beginning investors who can absorb a lot of knowledge fast and learn how to be a successful investor right off the bat by learning from another more experienced trader and hearing what doesn’t work. In this way, novice investors can avoid common mistakes that they would otherwise make without the ability to easily communicate and collaborate with veteran traders.
Collaboration is another key component of social investing tools. The ability to communicate with other like minded traders is a great capability that can help you to learn in real time and more quickly specialize in trading styles, sectors, industries and more. In fact, you can not only communicate individually between other traders that you know and form a relationship with, but you can also join groups that are topic, industry, sector or style based to further refine your skills or to learn new ones.
One example would be a group dedicated to day trading. This is a difficult and specialized area of trading that requires a lot of specialized knowledge and has a very unique strategy and style. The goal is to get in and out of trades within a day while making many small sized returns that add up to big returns on an annual basis. Collaborating with a group of investors who specialize in this area would greatly help to shorten your learning curve and set you on track for success much faster than if you made rookie mistakes and had to figure it out yourself.
Finally, competition can push you to become a better investor much more quickly than other forms of rewards. In fact, we are all competitive by nature and want to be #1 and secure that top spot on the leaderboard. Social investing tools frequently allow you to monitor your performance against the performance of your peers to see how you stack up.
In addition, there can be weekly competitions and leaderboards, which are visible to everyone and can drive investors to push themselves to achieve higher returns and higher rankings. This forces each competitor to innovate their strategies, style, philosophy and analysis, which can lead to them discover a better way of trading or a better strategy that produces better returns for them. Without competition, these new innovative trading ideas might never be discovered.
Social investing platforms are a new wave of tools that can really drive investors to become better traders while collaborating and sharing the latest and best ideas with others. If you haven’t already tried one of these tools out, I challenge you to try one out for a month and see if you don’t see the benefits it will bring to you.
About KINFO and social investing
KINFO is a social trading platform which brings together information from hedge funds, corporate insiders, financial analysts and private investors. KINFO lets you share non sensitive data about your portfolio and in return get access to the collective wisdom of the community. Learn more about how KINFO tracks private investors.