Social Media And Investing, Twitter Is Now Charles Twab
Social Media and Investing, Twitter is now Charles Twab
MAY 16, 2011
Social Media is probably the best place for you to get your investment ideas, not your stockbroker in 2011. This is a main reason that I have been so heavy into the financial sector for the last 2 years, to make the financial industry see the light. The thought process is simple; people invest their money in to emotional vehicles, period. Social media helps you measure and gage the sentiment in the market, in other words, the emotion in the marketplace.
With as much deal flow as I see, it is astounding to see how fast a company that may not make it in 12 months can raise 5 million dollars and a fund that produces a 7% rate of return with little to no risk can’t raise 5 million dollars in 3 years. People love to take chances. People are emotional.
The wealth of information available online is makes learning how to invest in stocks very overwhelming and frankly confusing. Data overload can impair your efforts in making timely and proper investment decisions, which may cause you to miss some lucrative opportunities in the marketplace. Believe it or not, Twitter is leading the way in this fight for financial clarity and insight.
Twitter is a micro-blogging platform. Users compose short blog postings called tweets on nearly every topic. So how do investors benefit? The simple fact is that many market experts use Twitter to track potential investment opportunities right now, and the average Joe can do the same. According to a study conducted by Indiana University, my alma mater. Twitter can be used to gage public sentiment, which in turn helps predict the market moves over the following four days. The research team at Indiana University has reviewed more than 10 million tweets to accurately reflect changes in the performance of the stock market with an amazing 87.6 percent accuracy!
You don’t have to be a Twitter expert with a PhD in Human Behavior to beat the market with Twitter. StockTwits, is an example of one of the online services that provides real-time status reports from investors who are posting to Twitter. They have a tool, named Stock Following, that allows users of Twitter to track their covered stocks by the same method they follow everyone else in their network. You can track public mood as it pertains to your stocks of interest in real time. In no way is this a solution for you to start plugging away at the trading floors, but it is a bit of insight that many people do not have, it does not ensure or guarantee successful investing.
Perhaps some of the major trading and anlayist firms should begin to implement the (TW) in their names, like Tworgan Stanley or Twerrill Lynch or Charles Twab!
By Eric Rice
Lone Wolf Inc
MAY 16, 2011
Social Media is probably the best place for you to get your investment ideas, not your stockbroker in 2011. This is a main reason that I have been so heavy into the financial sector for the last 2 years, to make the financial industry see the light. The thought process is simple; people invest their money in to emotional vehicles, period. Social media helps you measure and gage the sentiment in the market, in other words, the emotion in the marketplace.
With as much deal flow as I see, it is astounding to see how fast a company that may not make it in 12 months can raise 5 million dollars and a fund that produces a 7% rate of return with little to no risk can’t raise 5 million dollars in 3 years. People love to take chances. People are emotional.
The wealth of information available online is makes learning how to invest in stocks very overwhelming and frankly confusing. Data overload can impair your efforts in making timely and proper investment decisions, which may cause you to miss some lucrative opportunities in the marketplace. Believe it or not, Twitter is leading the way in this fight for financial clarity and insight.
Twitter is a micro-blogging platform. Users compose short blog postings called tweets on nearly every topic. So how do investors benefit? The simple fact is that many market experts use Twitter to track potential investment opportunities right now, and the average Joe can do the same. According to a study conducted by Indiana University, my alma mater. Twitter can be used to gage public sentiment, which in turn helps predict the market moves over the following four days. The research team at Indiana University has reviewed more than 10 million tweets to accurately reflect changes in the performance of the stock market with an amazing 87.6 percent accuracy!
You don’t have to be a Twitter expert with a PhD in Human Behavior to beat the market with Twitter. StockTwits, is an example of one of the online services that provides real-time status reports from investors who are posting to Twitter. They have a tool, named Stock Following, that allows users of Twitter to track their covered stocks by the same method they follow everyone else in their network. You can track public mood as it pertains to your stocks of interest in real time. In no way is this a solution for you to start plugging away at the trading floors, but it is a bit of insight that many people do not have, it does not ensure or guarantee successful investing.
Perhaps some of the major trading and anlayist firms should begin to implement the (TW) in their names, like Tworgan Stanley or Twerrill Lynch or Charles Twab!
By Eric Rice
Lone Wolf Inc
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