Social media are here to stay. Period. There is no way you can avoid Twitter and Facebook and Linkedin and Foursquare and more and more. Your friends checked-in in a bar and one of them was crowned a Mayor; your @girlfriend bought lettuce; the @person-you-do-not-even-know twitted about a terrible hangover and Lady Gaga released a new single on Facebook. This is fun, no doubt about that. There is business for social media. There is business for celebutante‘s. There is one question left – how can all that become useful for a trader? Could it be implemented in asset management software?
Twitter has become a dustbin of emotions. Emotions which people cannot control and which are caused by some real-life events. Should it be an act of terrorism or an experience with glossy iPad2. This is all real-life and it influences trades just as the acts proposed and natural calamities.
Now imagine that you could see the most real-time news possible – not from the news agencies – but from real eye-witnesses? What if you could understand the sentiment of the news, understand their volume, evaluate the authenticity of news and then make a trading decision on that signals? Will that affect your trading?
Would you want to wait for an official news source to find the very same information in the very same source and make it available for everyone? I wouldn’t. I would take this all by myself and be the first one to use the competitive edge and earn, earn and earn more.
Think about how social media could affect your day trading. Gain advantage and gain profit!