THE ADVANTAGES OF GROUP TRADING
Group trading allows you to learn more and faster. You can limit yourself to observing other traders or you can ask questions and seek advice.
Scientific studies show that a collective approach leads to better decisions. Wondering if you should close an open position? Use the vote tool to ask what the other traders think.
Break-out from isolation. Avoid the doubts which come from being alone behind your trading screen. People are social. They function better with input from others. Traders are no exception.
The NanoTrader allows traders to form groups and trade together. Many tools and statistics are included to make group trading efficient and interesting.
GROUP TRADING TOOLS
Ask other traders to give their opinion whether you should close an open position. In this example 3 group members advise the trader to close his position.
|Change of mind
is one of the icons in the category "Facts". It indicates that a trader opened a position in the opposite direction of his previous position (short to long or long to short).
The slider indicates if a position is profitable or not. It also gives a visual impression of the distances at which the trader placed is stop and objective.
|Profit per minute
is one of the statistics you can use to find interesting positions owned by others. Say, you like break-out trades ... look for positions with a high profit per minute.
is an icon in the category "Facts". When a trader adds to his long position, the green icon is indicated with a plus. The red icon indicates a trader adds to his short sell position.
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GROUP TRADING BEATS SOCIAL TRADING
Social trading is often about finding a profitable trader and copying him. Sounds good but it does not work. To determine if somebody is a successful trader you need extensive quality data. The trading data provided by social trading brokers can be misleading and is not sufficient to conclude if somebody is a long term profitable trader. Social trading is closing your eyes and hoping for the best.
Profitability is only one relevant parameter for a trader. What about risk? Some traders use significant leverage. Their account can go to zero in one trade. Do you want the same risk by copying their trades?
Many other aspects of social trading also require thinking about. Do traders get paid if you copy their trade? Do they place unnecessary orders because of this? Is it wise to put your money at risk by copying a non-licensed person?
So why is Group Trading better? In reality the trader is not relevant. Even a broken clock gives the right time twice a day, meaning that even complete beginners can hit upon a very good trade. So the trick is not to find a trader to copy. The trick is to find orders and particularly open positions with potential. Group Trading gives you access to many orders and positions as well as tools, statistics and visual aides to identify the good ones.