In order to be great in social trading at Ayondo, it is important that you decide from the first moment you start participating that you will aim to be the best at it. Having this goal allows you to operate at a certain level of excellence that is above what other followers will ever get. The wonderful thing about social trading is that as an investor; the skill set required for you to succeed is easy to attain.
However, this demands a very high level of discipline and critical thinking. In this guide, we will look at the tips and tricks that successful social traders use in order to get the results that they want. By following these guidelines, you will set yourself apart from other followers and you will increase your probability of success several times over and you will be able to make better decisions in your social trading investments.
Set your own goals
Here at Social Trading Secrets, we will tell you as plainly as possible what works and what does not. Therefore, we hope that you will choose to practice what works. Here is one practice that works for all investors in all fields. Start with your goals in mind!
There is a reason why we put so much emphasis on this simple step. Most people who get into social trading, overlook it or assume that it is impossible to have specific goals for social trading and to realize them. It is not.
Not having social trading goals is a very poor strategy for making money in this field. You should at least know what you are doing, why and what you want to achieve in the long run. By simply knowing this three things, you will be in a better position to know when your methods are working and when they are not. You will have an objective standard to gauge your own performance as an investor.
Here are some questions you ought to answer when setting up your goals.
ü What is the return on investment that I want to make quarterly?
ü Which traders can help me get this sort of returns?
ü How much risk am I willing to take on?
ü Which traders will fit into my risk profile?
ü What amount of time will I set aside to monitor and follow up on my social trading activities?
ü How will I monitor my traders?
ü How will I find and screen traders who can help me meet my goals?
ü How will I know when a trader can no longer help me meet my goals?
ü How much initial investment will I make with Ayondo?
When you answer these questions, you are ready to come up with proper goals. Take time and consider each question and note down your answers.
Rely on your own analysis
We already know that social trading is a great way to invest for those who cannot do the actual trading for themselves. However, as a successful investor in the social trading realm; you need to be keen and diligent with how you allocate your money. The secret of social trading is taking responsibility for your own success.
There are too many people who choose not to do their own analysis and rely on the analysis of others. This is probably the worst strategy for engaging yourself in social trading. Unlike some other areas in life, money does not follow the majority. Money is not democratic; simply because a trader has many followers, does not automatically mean that they will be the most successful. This is the first lesson in social trading. Do not follow a trader simply because they have a huge number of followers. Follow him if he fully meets your criteria of an ideal top trader.
Here is a checklist of the things that will enable you to be more confident in following your own analysis and sticking to it.
ü Ensure that you are actually competent to analyze traders and allocate capital to them in a smart way. To do this, first check out the point below on ‘becoming a competent investor’. Also read and faithfully apply the tips in the ‘Ayondo Social Trader’s Tips’. Those tips deal specifically on the best practices when selecting traders on Ayondo.
ü Practice patience. If you cannot be patient and trust in your own analysis, you may get into a lot of problems with selecting traders. After you have made your own analysis and are determined who are the best traders to follow, trust in your decision making and give it time for it to work out. Do not switch traders unnecessarily. A good method to avoid constantly switching between traders is to decide ahead of time under which circumstances you would change a trader. For instance, you can decide that you will only change a trader if they exceed their historical maximum drawdown.
ü Keep reminding yourself that most of the followers who follow popular traders have not actually done any analysis research on them. They simply assume that everyone else who is following the popular trader must have done the research for them. Most of the time, this is not the case and even when it is, it is unlikely that the investment objectives are completely compatible with the ‘herd’.
Become a competent investor
Smart investors in all markets understand that the surest way to get mediocre returns or even to run into losses with an investment is to enter into an arrangement that you do not understand. Social trading is no different. We cannot get into social trading without any understanding of how to get the returns you want and expect to get lucky and gain profit.
As an investor, you should equip yourself with the knowledge and all the aspects of social trading in Ayondo before you ever commit to live trading. Learn about social trading, learn about Ayondo, learn about the best practices in Ayondo and test out your new learned skills in a demo account first. Here is a check list of the bare minimums of getting yourself competent enough to invest in Ayondo.
ü Learn how Ayondo actually works. It is important that you understand the Ayondo Social Trading Platform. You should be able to use all the social trading functions of the platform with ease.
ü Check out the comprehensive Ayondo review in order to get an overview of the Ayondo platform and after that, go through the ‘Ayondo trading guide’ page to get an easy guide on how to open and set up your account.
ü Finally, open an account with Ayondo and practice what you have learnt.
Learn from other investors
In Ayondo, you can check out the performances of other investors and examine their portfolio configurations. This means that you can save yourself a lot of the hustle that would come with a trial and error approach.
Also in Ayondo, you can copy the portfolio configurations of a copier that you like. This basically means that you can save yourself all the work of copying every customization that they may have made. This is quite a useful tool; however we advise that you use it sparingly. Why? Rule of thumb of social trading:- Rely on your own analysis. As we will see below, every investor has different investment objective, so it is quite difficult to determine exactly if the copier you are following has the same objectives as you. Or if they are as diligent in selecting traders as you are.
The point here is to learn from others but nonetheless, you must take complete responsibility for your trading. If you want to copy a follower’s configuration and then optimize it for your own needs, then that’s fine. We think that if you have your own trading plan and criteria for trader selection, it is unlikely that you will find a follower who has a configuration that fits your exact needs.
We have seen that Investing with Ayondo can be a very fruitful venture for social traders. In order to ensure your success, it is important that you come up with you own goals for investing with Ayondo. These goals will guide you to making all the important decisions when trading. And when your goals are set, you must ensure that you are competent to actually make your own analysis to screen traders. Because of this step of taking time to ensure your own competence, you can become confident in following your own analysis and sticking to it. Finally, in order to ensure success; learn from other followers but not blindly.