It can’t have escaped the attention of traders with their fingers on the social media pulse that Twitter is fast becoming one of the go-to tools for determining what’s going on in the markets.
Scores of index and currency-related tweets are hitting the information super-highway every day. And with traders making the markets, surely it makes sense to pay attention to the opinions of the trading masses. Twitter can provide a quick snapshot into the reaction of global market news happenings and allow active traders to make an opinion of near-term market movements which can help an analysis formulated on technicals or fundamentals. The ‘$’ and # symbols are particularly useful to gauge opinion from other twitter users – say try searches on twitter $gold, or $ftse.
And just to hammer the point home, even scientific research is now pointing to using Twitter as an effective trading tool as a measure of quantifying sentiment. A recent study by Timm Sprenger, PhD student at the Technical University of Munich, analysed a sample of 250,000 tweets posted over a period of six months. His research identified a “striking co-ordination” between the Twitter consensus about stocks and the external information from spread betting and financial trading analysts. He also found that more valuable information tended to be retweeted, giving it the opportunity to connect with a larger audience Twitter may eventually provide a morespecialised version of its Trending Topics feed. However, for traders who want to stay ahead now the best market analysts from the biggest spread betting and forex platforms are already providing up to the minute data and reaction straight to you PC now.
And to make matters even better, for Spreadbettingportal’s very own market commentary and opinion you can follow @spread_bet today.