What is Social Investing All About?

Many people are keen to invest their money and get their money to work for them, but the lack the know-how. Social investment is an excellent way to solve this problem.

Whether you are an experienced investor or a complete novice, a social investment network will allow you to track the decisions of other users and copy those exact same transactions.

Don’t be fooled though, you still need to do your homework and study the strategy and profitability of each trader instead of just blindly starting to follow a trader. A social investment network such as eToro makes it easy to gather all the information you need with regards to different traders before you come to your final decision. You can choose trader according to profitability, the level of risk they take, frequency of trading and much more. There is always risk always risk involved in any trading, so it is important to investigate properly, as this will mean the difference between healthy profits or losing money.

When you decide on your favourite trader, you can follow him to see all his activities by clicking on the “Follow” option in his profile. Once you are satisfied with his activities, you can click on the “Copy” option in his profile. This means that every transaction will be copied in proportion. If you allocate $ 100.00 to that trader, and he opens a transaction with 10% of his trading capital, 10% of your $ 100.00 will copy that exact same transaction. Whenever he opens a trade, that trade will be copied in your account, and when he closes the trade, the same will happen in your account. If you don’t want to copy the whole profile of the trader, you can also copy single trades.   

The idea of a social investment network is that it allows users to invest in a fully transparent and engaging community by sharing and copying from one another.