Why should a trader track the trade of his competitors?
Category : Strategy
Trading in the financial markets implies the constant search of the investment opportunities and tracking the current market trends. The manager should do it on a regular basis. It is a normal process that should be done throughout the time. Also, the manager should know about the competitors’ actions. It is a crucial condition in order to achieve the desired results. Also, it is important because a financial market is a unified platform, where all the players perform. So, if you would be aware of the competitors’ actions beforehand, you would operate more efficiently.
There are various platforms, which are dedicated to the different traders’ communication as well as tracing their trading process if they show their results. Anyone, even your colleague, can be your competitor in fix api trading as soon as you commit different trading operations. Therefore you should always be familiar with and track the most traders’ thoughts.
Of course, it is not necessary to track every statement on or publication of poorly-known managers. On the other hand, the opinion leaders’ predictions are very useful for you. They serve as a valuable tool for the further exchange transactions execution. Almost the entire market follows the opinion leaders. Let’s be honest. If Buffet gives the advice to purchase some valuable papers, you would most likely follow it, right? Moreover, you would not only invest your entire capital in it but also engage your colleagues and friends to do the same.
So, where can the one find the other market players’ opinions? First of all, I want to emphasize a couple of platforms, which you can use for this need or even make your personal account there.
- The social networks. Nowadays the social media marketing has expanded beyond any expectations. Each company has its own profile or a company’s page which you can follow online. Some famous traders also have their social media pages and you can follow them as well.
- The personal blogs. If the owner feels good about sharing a personal opinion or some predictions, then there is a personal website or blog. It collects the entire information, dedicated to the trader’s experience. You can check it out a couple of times a week to find out if a trader takes a bull or a bear approach.
- The websites, which are aimed to connect the traders and market participants on one platform. Such websites allow to lead an effective networking as well as communicate with other fix api traders and representatives of brokerage or investment companies. Often there is a possibility to publish your trading account to demonstrate the trading results on such platforms. It allows you to attract the new investors and analyze trading results of other players. Fxsocialnet (http://fxsocialnet.com) is one of such resources.
- The forums. Perhaps, it is one of the first and large-scale resources for the traders’ communication. Forums are kind of a database, which contains a lot of useful information and would be suitable for both newbies and professionals.
I do not reject the fact that each trader has to have a trading strategy to be able to complete trading operations on fix api forex market. On the contrary, I encourage everyone to create it, if you don’t have one yet. A clear trading algorithm lets you know at what prices it is necessary to open trading transactions, and when it is better to close them. The system represents how you see the market. So, monitoring how the others see it can be a confirming or refuting factor in making an investment decision. Moreover, you would be able to analyze how another trader makes predictions and compare his prognosis to your own one. Only then you can commit any actions.