There is hardly any sphere that has not been impacted by Social Media.
People involved in different businesses and sectors are turning to social media for different reasons:
- To engage with their current customer base, in fact social media is becoming the new venue for customer service
- to acquire customers,
- to seek advice,
- to gauge the market sentiment towards their productAnd many others
Recently, we wrote about How Twitter can help predict the stock market. Over the past year, we have realized that when it comes to traders, they like to see the latest trends on social media. Traders/Investors have seen the huge network of traders present on social media. There are a lot of full time traders who have created a brand for themselves on various social media platforms, specifically on twitter.
Trading revolves around information.
The sooner you get any information, the better off you are. Also the more credible the source of the information is, the better. Also, as old trading veterans advise, it’s not the news itself – what really matters is the reaction to the news inspires. Public reaction to the available information is another aspect which is difficult to get/observe.
Life for traders becomes much easier when they can gauge or understand how their network of traders is feeling or how the popular investors feel about a certain piece of news. They love to follow their favorite investors and interact with them.
So a recent trend among investors is to create a healthy profile for themselves on social media platforms, for e.g. Twitter, and interact with their followers and other traders as well.
There are a lot of things you, as a full time or part time trader, can do to create a healthy network around yourself and build a brand for yourself as the benefits are numerous:
- Post your Trading Activities: This is the basic of building a Social Profile. Any professional is known by his work and how good he is. So if you are trader, the world would like to know where have you invested and what was the rationale behind that.
There are two benefits: One, people will start following you and will give greater importance to your decisions. Two, you might also receive some valuable advice and this might bring about a positive change in your Trading Strategies.
- Post your Trading Research: A full time trader needs immediate updates from the market. He is at his desk around the clock, making his marketing strategies, planning his investments, following the market and the public reaction. So while he is doing what he does best, it won’t hurt if he is also active on Twitter or Facebook and if he shares what is on his mind. He might have made some interesting observation and would like to know what other traders feel about it. Sometimes, a trader would like to follow some famous traders of his own sector on a regular basis to see their investment strategies. This exercise will help him build a network and also increase his learning.
- Learn from others: Social Media Platforms are abundant with full time traders who like to share their strategies and tips on a regular basis. They regularly post trades and don’t mind getting into discussions about the recent trends in the market. A novice can increase his learning manifold by educating himself through these trading gurus and trying to device his own strategies thereafter.
- Engage: Of late, there have been some great websites which create a social platform for traders, where traders from different communities interact. It will be of immense help if one actively takes part in these discussions and voices his opinions. There is no harm in being proven wrong or incorrect as long as you end up learning something. Social Media is all about interaction, sharing ones thoughts and learning from others. You never know someone might introduce you to his own network of investors, thereby providing you with a greater learning opportunity and also increasing your “Social Quotient”.
- Make intelligent use of Social Media Platforms: Even traders seem to have a very good understanding of various social media platforms and they have used it effectively to create a huge following for themselves. Tweeting using hash tags with stock symbols and company names, connecting multiple social media accounts so that each message is posted on all of them, making effective use of mediums like Pinterest and StumbleUpon, posting interesting pictures or content on Facebook, Twitter or Pinterest are some of the strategies.
- Stay updated with the latest market events and post relevant information: A good trader is always up to date with the latest market news. He has to know about the recent developments. So it would be great if you post relevant information on your Social Media feed and interact with people through them. Knowing how particular news might affect the market is not easy. But interacting with other people after you post such content will make things much easier for you.
- Try to get into the FOLLOW FRIDAY list on Twitter: Twitter has this famous FOLLOW FRIDAY list of influential traders who have actually performed well that particular week. This is a trend that traders have been following for past couple of years. Every Friday they would send out a list of Twitter handles they believe are a must follow. This is to help others find the top traders according to the person who is sharing such a list. As you keep learning and doing well, you might also have grown as a trader and have a certain following. It might then become easier for you to make this list of influential traders. Featuring in such lists will be a great boost for your profile and your following.
Thus, we can see that there are numerous benefits for traders if they are active on Social Media. One cannot imagine the reach of Social Media and the impact it has had on the society.
It has played a major role in information sharing, public interaction and thought generation. We would recommend traders to start off by being decently active and sharing relevant information.
About Punit Gupta
Punit Gupta is an entrepreneur and full time stock trader. Punit specializes in building startups by bootstrapping. Currently, Punit is developing a brokerage selection platform, CompareBroker, and a Social Platform for Traders, TheTradeStreet. Punit attended Georgia Institute of Technology Atlanta and worked with an Atlanta based startup for 7 years before quitting to start his ventures.