09/04/2024
Why Do Retail Traders Do What They Do On Social Media?
Once again, I'm here to remind you that trading the financial markets is one of the hardest activities or business a person can decide to go into.
It's not a quick rich scheme, you are not going to make so much money in a short time and you will not buy your favourite cars or houses in a short time.
Trading is Risky, frustrating, emotionally draining and interesting. If you put in the work, study, learn, backtest, forward test, be disciplined and follow a good trading plan, you can and will be successful in the long run.
Trading is the most rewarding skill and business in the world because when you get it right, you will only do less work and make so much money through trading.
Today I will be talking about "Why Do Traders Do What They Do On Social Media"
The trading industry is completely different from most businesses and industries. In the trading industry we have the Large Fund traders, Hedge Fund traders and also the retail traders we all see all over social media.
In Medicine and Surgery, you don't see doctors come on social media to display their salaries or overtime wages for the public to see.
In other businesses and industries, you don't see business owners coming on social media to display their profits per day or their weekly withdrawals or even their bank statements.
In the trading industry, mostly among retail traders like you and me, we have flooded social media with the following posts:
- Daily Trading Setup
- Open Positions
- Screenshots of Running Winning Trades
- Videos and Screenshots of Closed Winning Trades
- Videos and Screenshots of Daily Profits and Loss
- Screenshots of Withdrawals
- Screenshots of My FXbook
- Screenshots of Broker Statements
- Screenshots of Bank Account Balance
- Pictures and Videos of Luxury Lifestyle as a result of Money made from trading
Many of these Videos, Pictures and Screenshots are Demo, Fake and Edited trading results but a few are authentic and original trading results.
On several occasions I have asked myself, why do retail traders put so much energy into uploading and updating their social media pages with consistently profitable and positive results?
Why do they put so much energy on social media posts even more than the trading itself?
After asking these questions for many months, I began to do personal research and findings. Then I discovered the answers I was seeking.
I will talk about it today, fasten your seat belt.
Firstly I must make you understand that only a few retail traders are genuine with their trading results and profits online.
Most of the results are Demo, Fake and Edited. They are not real results because statistics still say that less than 20% of retail traders are consistently profitable in trading and over 80% are struggling and not making money from trading the live market.
The major reason why social media is flooded with trading success and profits videos, pictures and lifestyle is for the following reasons.
1. Social Proof and Validation.
2. Engagement and Followers Building
3. Call to action and affiliate commission business model
1. Social Proof is a general marketing and business model for internet marketers which they use to grab and hold the attention of people on the internet for various reasons.
It could be for proof of credibility and authenticity. It could also be proof of false images and perceptions on the internet.
Example.
Let me show people online that I am a good trader, I am making good money from trading and I am profitable in trading.
In return, I get respect, praises and I am seen as a successful person on the internet.
Another Example
I am now profitable and a good trader. I need to show the world my authentic trading results and profits on social media.
In return, I could find investors, companies or business associates to fund their accounts and sign account management deals with investors.
Believe me when I say, "There are so many investors on social media watching closely and looking for consistently profitable traders to invest their money with for trading account management"
2. Engagement and Followers building is the new oil money on the internet. The more followers and engagement you have on social media, the more money you make from social media through adverts and direct promotions.
We are moving into an era where all social media platforms will be paying content creators with a high level of followers and engagement.
So with High followers and engagement on your social media page, you can be making a good amount of money even without trading the live market but acting like someone successful in trading.
3. Call to Action and affiliate commission business.
It's of a truth that so many retail traders make more money selling courses, mentorship programs, paid signal groups and affiliate commissions from trading companies.
Where do they find these people to take action?
It's definitely from social media. You could make more money through selling and affiliate in trading than most traders who trade the live market.
It has been proven that Trading Education was the Shovel during the Gold Rush. This is why most traders are selling courses and mentorship programs because they know it's a great way to earn more money in trading.
The listed above are the major reasons, any other reason is a minor and personal reason for flooding your social media pages with loads of screenshots of winning setups and trades.
Now the Big Question.
Is it a wrong or right practice to post screenshots of trading setup, running profits, closed profits, withdrawals and lifestyle on social media?
My Personal Answer
As long as you are not defrauding or scamming people on social media through trading, it's not wrong to post your trades and positions on the internet.
For those of you who are lying and deceiving people on social media with fake screenshots and profits from Demo trading calling it a Live Account, most times you end up deceiving yourself and ruining your reputation, that's if you have one.
As long as you are comfortable with your actions, you are not hurting or scamming anybody and you are doing it for business purposes, carry on and make your money from the business of sales and branding.
Aside from trading the live market and making profits, there are definitely other legit ways of making money through
- Teaching Trading
- Selling Courses
- Selling Mentorship Programs
- Signal Groups
- Affiliate Commission
- Social Media Promotions and adverts
- Influencing and branding.
If you can do any of these and make good money, please do. It was not written or stated that every trader must make money from trading the live market.
Do what works best for you and do not mislead or scam others on the internet and in the industry.
Always Remember, "Trading is a business and should always be treated and handled as a business". ✅
CC: Ifexco Plus
