Zulu Social Trading
You will learn about the following concepts
- Tips for trading at Zulu
- How to reduce risk
- Recommendations for new traders
Here well talk about some more advanced tips in ZuluTrade. ZuluTrade is another great social trading network where you can trade Forex, stocks and commodities by following other traders. Keep in mind that ZuluTrade is a platform more fit for people who have at least some level of trading experience. This doesnt mean that you cant learn if ZuluTrade is your first platform, but it would be much more beneficial for you if you start elsewhere.
The traders you will be following in ZuluTrade are called “signal providers”. Just like with any other platform, you should take your time in selecting them carefully. You should always look at the history and pick out those of the providers with lots of experience and a consistent graph that shows they were successful. If you dont do that, you might be fooled into following a signal provider who is not really as good as he seems. Dont always trust the rankings. The fact that someone is featured there is not proof that they are good.
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Of course, once you think that a provider is worth the investment, you should always test them using the demo account the system allows you to make. This is always a good idea whether you want to test a trader or you want to check out a new strategy, using the demo account before you plunge your actual money is your safest bet.
Sometimes new rising stars appear on the horizon. Its not a good idea to follow those rising stars. Always trust in the experienced traders, more. There is no guarantee that when a trader has had a number of years under his belt, hes going to be a good, but this is also not what were saying. Now, were saying that the new traders havent been tested yet. How would you feel if you realize that the guy you decided to follow was exhibiting what we like to call “beginners luck”? Suddenly, you are following someone who has no concept of trading but got lucky in a series of trades (it happens more often than you might think but its definitely not worth it in the long run). Always be cautious of new providers. Its much better to follow someone who has been tested numerous times than someone who may or may not have gotten lucky in a few trades.
Also, there is a chance that ZuluTrade will recommend a trader to you via email. Be cautious with these traders. In some cases, they are new, or theyve employed a new strategy that have boosted their winnings. Whatever the case, many people decide to follow them. This isnt really a bad thing, but you need to be careful. Every trader receives a commission for their followers.
Like other platforms, ZuluTrade has a risk-measuring tool. The Risk-O-Meter allows you to control your risk management. This is great because there is a slider you can use to control your risk. Risk-O-Meter allows modern and advanced risk management. Make sure that you keep it a lot less than 100%. If youre in doubt, its a good idea to start with something like 10%. This means that you will risk a lot less when you follow a trader.
Reduce the Risks
In the risk management section we explained that its a bad idea to follow too many traders at once. This is especially true for ZuluTrade. You will have to invest more of your time if you want to find good providers to follow. The search system on ZuluTrade is not the greatest, although it gets the job done. This doesnt mean that you will have to browse through each individual trader, but make sure that you dont follow too many at once. You shouldnt count on more than two or three at a time. Bet on quality, not quantity. One good provider can make you more money than a five bad providers. In fact, its actually quite the opposite. Five bad providers can waste a huge portion of your equity before you know it. Mitigate this risk by not following too many at a time.
When you use ZuluTrade, you might be left under the impression that its going to be easy to make money and you wont have to do much for it – just sit and wait. Weve done everything in our power so far to disprove that, yet we think that there still might optimists among who think that trading will be a walk in the park. You need to build realistic expectations. You cant think that you will triple your finances in a week. If you do,then you will take huge risks and will probably lose everything you have in a week.
If Youre Totally New
If youre totally new to this sort of thing, then you should consider choosing another platform. ZuluTrade isnt really the most user-friendly platform you can find, and it can be quite confusing if youve never traded before. Our recommendation if youre a newcomer to the field is eToro.