Trading social the basic

The trading social, it is the practice by which the financial investors base their trading decisions primarily (or only) on the financial information that is generated by the users in the web media 2.0. Social trading marks a turning point in the way in which traders analyze the market. They no longer count only on the traditional methods of analysis fundamental and technical to make their own decisions-making position. This is what is also known as the financial analysis social. Social trading is also associated with a variety of networks of the online trading, a mixture of traditional social networks with the trading platforms of the recent past.

Well before the advent of the internet, trading was characterized by the physical presence of customers and brokers in the stock market (such as the Palais Brongniart in Paris, or the New York Stock Exchange in New York City). When the Internet and the new means of communication are reached, the trading has become electronic. Nowadays, the emergence of web 2.0 and social networks such as Twitter and Facebook has been quickly followed by investors and traders, for their capacity to share their knowledge in real-time. Traders financial have quickly understood that they had a new source of information, often much faster than the traditional media, which could be both economic, financial and technical.

Nowadays, most of the trading platforms offer this kind of services, and the traders began to track this information, which is ultimately more social than financial. This is done explicitly (by following the information of the other more experienced traders to automatically or manually) or implicitly, when your trading decisions are influenced by the trading activities of other traders.

Leave a Reply