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Social trading: where everybody knows your trade

Would you trust a stranger online for investment advice? Social traders do, and institutions – and regulators – are taking an interest

Trading is widely portrayed as an extremely competitive endeavour and not one that involves a lot of sharing – especially when it leads to stellar returns. But take the trader from Denmark who goes by the nickname of Hrnielsen. In seven years of trading online, his investments have generated returns of 761%. But rather than keeping his strategy to himself, Hrnielsen streams all of his trades on a website.

Last Tuesday, for instance, he bought 500 contracts-for-difference in stocks of Danish lender Danske bank. A day earlier he bought 500 shares in wind turbine producer Vestas Wind Systems. He also likes the Turkish lira against the Danish krone.

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