Brokers with social trading features allow you to follow, copy, and interact with other traders. By doing so, they ensure you have access to a powerful emotional and psychological support system. Leveraging social trading platforms is advisable because it:
- Reduces Isolation and Anxiety
Most online traders trade alone in dedicated spaces, such as home offices. You will find many professionals with fully equipped workstations in their bedrooms. As you can imagine, trading alone can feel incredibly overwhelming and trigger anxiety, which can undermine your performance as a trader. When you’re too anxious, you are more likely to keep second-guessing yourself and making panic-fueled decisions.
The social edge has completely changed this dynamic. Now, you no longer have to isolate yourself and do everything solo. You can join a thriving community, similar to the one offered to people who trade with AvaTrade’s trading platforms, where you can interact with other traders and engage in a range of activities, from sharing ideas to venting after incurring losses.
- Relieves Decision Fatigue
Trading financial assets, such as stocks, requires constant decisions. You have to figure out the best products to invest in, when to enter the market, where to set stop-loss, and much more. Doing this multiple times a day can be mentally exhausting. And over time, the exhaustion snowballs into decision fatigue, a critical issue that can lead to overreaction, miscalculated entries, and burnout.
But becoming a victim of decision fatigue is no longer an option in the age of social trading. Whenever you feel overwhelmed, you can visit a broker that offers the social edge and borrow ideas from other traders. You can check what different individuals are doing or leave everything to automated copy trading systems while you take a break.
- Provides Perspective on Losses
Losses are a part of online trading. While interacting with the markets, you will lose money at least once. Losing money can be frustrating and discouraging, especially for novices who have yet to master the art of handling such challenges without losing momentum. A significant loss can also make you question your entire strategy and second-guess every future decision.
Fortunately, with the social trading edge, losses no longer come with a lethal sting. Testimonies from traders who have also lost money and how they handled this challenge can help you avoid spiraling into panic and self-doubt. They remind you that everyone loses money at some point and it's all a part of the process, not a personal affliction.
Recap
By allowing you to interact with other traders and even copy top performers, platforms with the social edge reduce your exposure to emotional strain. To maximize the benefits of this crucial aspect, it is essential to select a reputable broker with an active social media presence. You should also ask as many questions as possible, interact with other community members, and focus on learning. Lastly, consider leveraging the copy trading feature if your chosen trading site has it.