Networking in Trading: Openness VS Secrecy of Trading Operations

Networking in Trading: Openness VS Secrecy of Trading Operations

Mankind lives using digital technologies for more than a decade. Previously, we learned information only on TV from the news or from the morning newspaper. Today, it’s enough to turn on the computer, go to a thematic web resource and find all the information we need. The same situation is observed in the financial market, because you do not need to wait for the news release to find out about this or that situation. Today, this role is performed by social trading platforms, which promptly process a huge amount of useful content that we, stock speculators, can try in trade.

Speaking about the social platforms for a trader, I do not mean Facebook or Twitter (although they certainly are one of the leaders of a useful information flow), it’s about the thematic resources for traders, forums or blogs. Each of these species is intended to provide maximum communication or networking with respect to the actual market situation or just forecasts regarding the future dynamics of the financial active.

Speaking of forums, I consider them to be reliable and trusted sources of information, as well as original databases, because over the years, they have generated a huge list of useful content that newcomers can use to train new material, and they will also be able to find ready-made working systems. Many who were active in the forums shared their experience, and they have survived there to this day. In turn, professionals can keep in touch with colleagues for quite some time, which allows them to accumulate an effective community around one trader. By this principle, both blogs and resources work that make it possible to personalize the exchange manager. First of all, such resources are of interest to professionals and traders with experience. Of course, such platforms can be visited by newcomers or those who want to know the opinion of the majority of the market participants before committing a trading operation.

Personally, I have been part of a huge trader community for a long time, but I was in the viewer’s mode. I tracked the results of eminent market players, learned the latest information and tested trading recommendations. This all enabled me to become a person I am now. Today, I openly share my opinion and demonstrate personal results.

However, some believe that trading should be kept secret and do not share their experience in this matter. I think the opposite. If a trader can accumulate the profit from the market with his trading strategy, then why not share it with the rest of the players? Moreover, today there are many resources that allow it to be done autonomously (for example, MQL). But where would it be better to trade and simultaneously deliver signals to potential customers. To do this, some brokers implement the PAMM account, while others go further and create special plug-ins in MT4.

Similar plug-ins are an additional software solution that brokers offer their customers. The trader has the opportunity to act as a provider of a trading signal, and also receive additional profit from his own trade. As if the idea is not new, but the implementation in the trading terminal itself is something unusual. At least for me. After all, in fact a trader does not need to go beyond his trading terminal: he received a recommendation and immediately sold it on the market. Thus, in this plug-in all can be divided into two groups: providers of trading signals and subscribers of social network platform. The first one increases its profits from its own trade, and the second one receives a passive source of profitability.

I can understand why the brokers launch these plugins in their system and encourage the social activity and networking among the customers:

  1. Tools for sale. With the help of such a plug-in, the broker has the opportunity to attract the interest of different market players (professionals and novices), which increases the competitive advantage.
  2. It enables you to increase your trading activity. If the newcomers track the trading recommendations of more experienced market players, they will open more and more deals. The broker, in turn, will be able to increase the commission for each trading asset. Moreover, this is a departure from the responsibility of the broker for the result, because, as I see on different brokerage platforms, they give ready-made recommendations for action. But in the market, there is no 100% guarantee of the broker, and if the client loses the funds based on his recommendations, this will break the trust, and the client will leave.
  3. It allows you to overlap the transactions both inside the server and in the market. For a broker, this is an excellent tool for tracking all the results on the server so that possible brokerage risks can be minimized. Thus, the dealer can predict future open positions and overlap them.
  4. It is synchronized with mt4 social. This is the main feature, which I already mentioned above. The trader receives a single “habitat” in which he can share his forecasts, monitor the results of his colleagues and direct competitors. And it’s great. There are already similar resources, but without the possibility of trading. If the broker realizes this, then the functionality of such a company will increase at times.
  5. It is an alternative software solution that keeps the trader within the company. This point follows from the previous one, because if the trader does not attend third-party resources, likelihood of a change in the brokerage company is also proportionally reduced.

As you can see, networking in the field of trading is a powerful tool for brokerage companies, and not just for exchange speculators. Therefore, on the contrary, I do not understand those brokers who not only do not implement the social platform option, but do not create the necessary conditions. I am more than sure that in the future, the social component will become even more powerful and more open than now.



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