In general, traders are divided into two main groups: those who prefer to trade forex only, and those who enjoy arguing with other traders. How do you determine the best method?
To be fair, there is no absolute answer to this choice as it all depends on each individual's trading style, timing, characteristics, and trading goals. Let's take a look at the pros and cons of each trading method below so you can decide which method is right for you.
Advantages of trading forex only
Few traders think that forex trading looks more interesting in and of itself. This type of trading is suitable for traders who want to be illegal, independent, and willing to take responsibility for all risks. You can find your business very daunting, but for some traders, this concept is quite challenging and your trading skills can develop quickly.
- Save time
Forex trading allows you to make individual decisions your way, saving time without the need for lengthy discussions with other traders.
- Free exam
One of the main advantages of choosing your company is that you are free to experiment. In groups, people often think the same thing. When it comes to deviating from the norm and thinking outside the box, the idea needs to be aligned with the understanding of other traders. It is not uncommon for these ideas to be criticized and rejected.
- Control and decision in your hands
Trading in the Forex market only gives you control over the whole process and decisions as no member of the group disagrees or argues with you. You have the right to control all decisions and to be responsible. Hence, it can increase your productivity better.
- Create your trading strategy
While you cannot share your ideas with other team members, you can create your trading strategy entirely without considering the opinions of others. Even if you fail, don't be shy and this process can be seen as a natural part of developing trading skills.
Disadvantages Forex trading only
While trading independence has advantages, there are also disadvantages to consider when choosing individual trades:
- You cannot blame others
As an operator, you cannot just blame someone else for the loss; you are all responsible.
- No support
Without the personal motivation of an adult, you can lose inspiration, get lost, ignore important things because no one reminds you, or even get lazy. Only you as a parent can know for sure. If you are feeling lazy the only thing you can do is encourage yourself.
- Mistakes are easily forgotten
A lack of perspective can lead to situations in which mistakes or dangers are easily overlooked. You will find it easier to ignore the mistakes because no one else is watching or pointing at you. In this case, you can get caught on your train, which can be fatal if it becomes a habit.
Benefits of social business
Did you know that many traders are unsure of their skills and need environmental motivation? Or are you one of them? For this type of trader, social trading may be a more suitable solution.
For inexperienced traders, social trading can be more interesting as it provides a place to ask questions or get feedback from other traders if problems arise. In addition, there are many things that social trading traders make choices including:
- Multiple views
Social commerce enables you to look at market movements from a different perspective to make the buying or selling decision process more moderate. The number of comments from different perspectives can make you think two to three times when determining the open position.
- Tips from the most experienced traders
In the social trading system, you can follow other traders with more experience and maturity. Not only does this make your trading opportunities more profitable, but it can also help you carefully consider every decision a professional trader makes in a given market situation.
- There is a division of roles and responsibilities
If you participate in a social business by joining a team, there is of course a division of labor according to certain areas of competence. In this case, the division of responsibilities and roles can reduce stress in the trading process. In addition, trading losses are not just one-time for you.
- Motivation in despair
You are motivated by social business in difficult times and do not have to deal with problems alone. If there is a problem, team members can offer support so they can get up and go back to business.
Disadvantages of social trade
Beginners may initially think that social trading is surrounded by trusted traders for greater productivity and security. However, is this always the case?
- Disagreement arises
Even social business with a strong program can certainly lead to conflicts. What if the traders you follow no longer make steady profits as expected? So what if other traders have different views on your market conditions or your risk management? Of course, different views not only lead to disagreement but also lead to disagreement.
- Spend time with other interested traders
In the world of forex trading, you need to make up your mind as soon as possible. However, social business takes a long time to select traders who are worth following and discussing with other traders. A golden opportunity can be missed because you are paying too much attention to other interested traders.
- The risk of chasing a fake trader
Leaders or signal providers usually get more benefits from the commissions paid by their followers. The more followers you have, the more commissions you can of course receive. Hence, a small number of traders will be interested in becoming a leading provider or signal provider, including those who are not qualified. If you're new, the chances of finding fraudulent executives are usually high. In this case, the first thing you need to learn to distinguish between good and real trading statistics is to distinguish between fake and real leaders.
- Increased dependence on other traders
Leadership and discussion will become commonplace in social commerce, which can continue depending on the methods of mass trade. As a result, trading decision-making skills and accountability for their trading results are less developed.
Not surprisingly, some traders who prefer forex trading find social trading negative and unproductive.
If you enjoy group work in your day-to-day business, you will likely be more profitable in social trading when trading forex. On the other hand, if you are a single player who believes in your ability to make profits without helping others, please act alone. Remember that each trading style has its advantages and disadvantages. Choose between forex trading alone or social trading with you.