You’ll be discussing social media at City A.M.’s Active Trader Conference. What will you cover?
First how the trading industry is changing with social media. The US Securities and Exchange Commission now allows companies to use Twitter as an official way of making announcements, for example. It shows just how social media is becoming a powerhouse that needs to be exploited by traders. But there’s a lot of myths around. Some brokers use social media because it’s fashionable. But real traders use it because they need to know what is happening in real time and follow other influential traders or capital markets firms. They use Bloomberg, Twitter, a bit of Facebook. In general, we’re seeing a democratisation of trading with social media, through access to sophisticated new trading tools and other traders worldwide.
What forms of social media are traders using?
Twitter specifically. But I’m surprised by Facebook. People join trading networks through Facebook, and they don’t mind sharing information. There’s also the emergence of very advanced social networking trading platforms and communities like Quantconnect, and other social platforms like eToro, Myfxbook, Currensee, ZuluTrade, MeetPips, ibfxconnect, Fxstat, StockTwits and TradeSlide.
What advice would you give to traders?
Do the homework on how to use social media to improve your trading. Look at the most influential traders and institutions on social media and see what they’re doing. You can see who is trading better, and can start learning with them and ultimately trade better yourself. Secondly, use Twitter or relevant trading platforms like Currensse or StockTwits to gain information about markets in real-time. Follow influential accounts, and you get valuable information. Thirdly, engage with online communities to improve your education level. Most use Bloomberg, but if you use Twitter or other social media network communities, MT4 or copy trading advanced features, you can get advanced trading capacities for free.
Dinis Guarda is founder and chief executive of forexthink.com and intelligenthq.com