How To Use Twitter For Traders
- Trade The News
- The Role of Twitter
- When Did Twitter Become Important For Traders
- Examples: Twitter Ahead of Traditional Newswires
- How to Spot Fake News
- How Traders Effectively Monitor Twitter
- Who to Follow on Twitter
TWITTER TRADERS
Since the introduction of social media, the 21st century trader has had a new tool at their disposal. In this article, I will discuss how financial market participants can utilise social media, with a particular focus on Twitter as a key resource to track vital market-moving macro news. I will go through notable examples I have seen in recent years where social media has provided an edge for traders, alongside a helpful insight on how to use social media efficiently and spot fake news!
Before going any further, I would like to state that I will not be providing any insight into the Reddit retail trading army of WallStreetBets, mainly on the premise that I haven’t used the blog myself (and don’t intend to). So for those looking for the Reddit trading 101 guide, this is not the report for you.
TRADE THE NEWS
An area that has been covered extensively by DailyFX is “trading global macro news”, which ties in quite nicely with how you can approach social media for analysing financial markets. Therefore, it is important that at first, you have a firm understanding of the fundamental drivers for the assets that you trade and are also constantly up-to-date with the current themes/narratives. With this knowledge of key market drivers, alongside current market positioning/sentiment, as a trader, this will better prepare you as to how markets will react to new information. Keep in mind that the current price of an asset reflects all available information (or so it should, according to the Efficient Market
