Hybrid strategy
This is a strategy that combines some common ones. Usually this is a mix of copy trading, social following, and portfolio mirroring. By adopting this combination of social trading strategies, traders can enjoy a varied and well-rounded approach to their investments.
As with any investment, there are advantages and disadvantages to social trading. Consider these factors before using social trading to assemble or manage your portfolio.
The pros of social trading
Can provide an additional revenue stream
Experienced traders who turn to sharing their knowledge on social trading platforms can get some money from those who copy their trades. Accounts that buy and sell based on your trades, then profit from them automatically give you a share of those earnings. These earnings are apart from the profits the experienced traders make on their own trades.
Explore social trading to amplify your investment strategy! From copy trading to engaging with a community of traders, see how collective wisdom can reshape your market approach. Dive into a world where transparency meets collaboration.
— Equaledge (@equaledge) May 30, 2024
Saves time
Using a social trading platform can save traders a lot of time, be they beginners, casual traders who want to learn about investments, or seasoned traders who want an added income stream. Instead of devoting entire days researching on which stocks to trade, social trading platforms can do much of the trading work and technical analysis for traders.
Enables portfolio diversification
Social trading can be a way for quick and relatively easier portfolio diversification. Thanks to the platforms doing most of the legwork, beginning investors or traders don’t have to waste time studying the financial markets. Traders also have the benefit of adding investments they may not be aware of or would typically add to their portfolios.
