Nowadays probably everyone has used or at least heard about the social media. It is not surprising that a 140-word juggernaut has been a turning point in the way how consumers manage their money, careers, Forex, and binary options trading. Twitter is a social-networking website where users are able to share short texts limited to 140 characters. There are over 200 million active users producing 400 million tweets a day. To understand how powerful Twitter can be in the trading world, go through this article to see the benefits of using this tool in order to make your Forex trading as efficient as possible.
In the recent years, Twitter has been a crucial source of news, information, and alerts in the currency markets, as traders can track and identify fast and breaking news. The participants of the trading world are using Twitter to stay alongside with the market and use the news to make imperative or critical decisions. Apart from just detecting events and making adjustment to the analysis, you are actually able to perform a fundamental analysis. Fast delivery of the news and opinions about particular events together with market analysis can help in spotting additional factors that are influencing the appreciation/depreciation of the currency. Twitter allows traders to be notified about particular trends fast and react to them in a shorter period of time, which is important because the economies are constantly fluctuating.
In the financial sphere, there are several ways to use this social network tool to help managing your positions. Simply put, it is a platform where thousands of people play the role of a research team at no cost. So why not to use this significant instrument to your profit?
With Twitter, you are able to track the most recent currency movements and spot upcoming trends. For instance, you are going through your feed or browsing among emerging trends and notice predictions on the upcoming release of the current account balance data for the New Zealand. Most of the predictions state that the current account shortage will go from NZ$4.75B to at least NZ$4.0B. Analyzing it together with current GDP per capita, shows increase in New Zealand’s exports that will directly lead to currency appreciation. Such information allows you to open a long position on NZD/USD prior to public release of the data.
With Twitter, you are aware of what people are thinking right at this moment and what information they possess that fluctuates their views on countries and their currencies. With simple tags of “#NZD” or “#New #Zealand” you are able to see what investors are thinking catching the elusive ‘sentiments’ about a currency of your interest.
While with Twitter you can follow the general flock, it also contributes in forming a contrary view over the market as well. If you notice a too much positive feedback over some particular trading symbol or the market generally, you may want to take money off the table and put it on the other side of the forming bubble.
The real effort should me made while using social media for investing is finding the quality content and implementing it to your Forex and binary options strategies. In the modern world, where you have to constantly fight against spam and scams, it is essential to optimize your Twitter experience so that you get the best and most fruitful information at the touch of a button. There are many recommendations on how to optimize this search exactly, by following some particular commercial feeds, like CNBC, StockTwits, or Benzinga. But many things depend on you personal preferences and desires in the financial market. So explore and be in trend and on time for investing using a profound analysis with the help of Twitter.
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