Social Trading means something like Follow or Like or Connect borrowed from social media, but instead of indicating “I like you,” it indicates “I like the way that you think about that investment enough to invest with you.” I call this “low-cost active alpha.” My theory is that we are all experts in something and we can use that expertise to invest/trade, if we have the right tools. In hedge fund speak, we can all generate Alpha returns. This theory come from the “buy what you know” mantra of Peter Lynch, the legendary investor who built Magellan Funds. For a contrary view, read this post (which I think says you should use your enthusiasm for a product/service as the starting point for a disciplined investment process, not a simple “follow your gut and hit the buy button”).

http://bankinnovation.net/2015/02/social-trading-low-cost-active-alpha-and-the-democratization-of-wall-street/