eToro Presents: The Secret Life of the Social Trader

It’s no secret that social trading is turning the financial trading world upside down. eToro OpenBook network for example, gives traders a whole new arsenal of tools and opportunities to incorporate into their daily activities. Since the launch of the CopyTrader, eToro’s traders’ earnings have been up by 20%! But while the range of new possibilities is hugely exciting, it may not be entirely clear how to use social trading in order to take advantage of its maximal potential. So we thought we’d bring you a short article based on the experiences of one of our most successful traders (who chose to remain anonymous) to give you an insight into the secret life of the social trader.

Our trader told us that once he joined the OpenBook network he immediately started following the market leaders for all instruments that he was used to forex trading; in his case these were the EUR/USD, the GBP/USD, the USD/JPY, gold, silver and oil. He also started following the top profiting traders over the last three months. “I didn’t want to follow the weekly or monthly leaders because anyone can have a good week,” he said. “It takes a really good trader to stay on top over three months or more.”

Once he started following these traders, he started consulting their feeds as part of his daily technical analysis. After checking the daily analysis and the economic news on the eToro blog, this trader goes over the technical charts to see if there are any robust trends developing, and then compares his findings with the traders he follows. “Most of the time I can predict the way they trade, but sometimes they surprise me and show me different longer term trends. Sometimes I even ask them about a trade on their wall, and most of the time they’re nice enough to respond.”

With the launch of the CopyTrader, our trader took this opportunity to add equities to his portfolio. “I never knew much about indices, so I didn’t bother trading them. When the CopyTrader came along, I decided to try it out with traders who were market leaders in indices, and I haven’t been disappointed. Thanks to these traders I’m getting steady profits from the equities market without any previous experience!”

When asked about his opinion of social trading, our trader told us that it was the best thing that ever happened to the forex industry. We wish him luck and we hope that his insights have helped you see what social trading can do for you.