How Social Media Can Help Investors
The rise of social media has given investors all over the world a quicker and more efficient way of gathering data to make decisions. Immediacy is key in the process of investing as a couple of minutes’ delay can make a difference of hundreds of thousands of dollars. Thus, it is crucial to try and stay ahead of the competition, and that is precisely where social media platforms come in. In this article, we are going to know how social media platforms such as Facebook, LinkedIn, and Twitter can help investors. Let’s get started.
Using Twitter to Predict Crucial Market Movements
Twitter, which happened to begin as a humble microblogging platform, has evolved massively in recent years. It has now become the most instantaneous news hub on the entire planet. This particular platform has been consistently delivering groundbreaking news stories to the world ahead of the likes of Google and CNN. Now, for serious investors, keeping abreast of breaking news and industry developments is of the utmost importance and this is where Twitter can help them out. For example, by being an active user on Twitter, an investor can be presented with the opportunity of purchasing or offloading stocks before the rest of the market becomes aware of a significant change. This can put the investor at a considerable advantage when it comes to making a profit.
Using LinkedIn for Mining Industry Insights
As of now, 73% of investors use LinkedIn to research investments. And 53% of them use topic-specific discussion boards, and lastly, 26% use Twitter, Facebook, and LinkedIn in a combined manner. LinkedIn in particular is a great social media platform for corporate professionals. It offers an excellent opportunity for building relevant networks with various other individuals and businesses. As with Twitter, it is simple for investors to get connected with experts in any industry to obtain further insight into their market. With LinkedIn, the major benefit happens to be the fact that the content is exclusively professional. Also, this is a good platform for carrying out due diligence on investments as well. Investors, by using this platform, can assess both individuals and industries. They can also search for relevant business leaders and industry influencers as well.
Using Facebook to Gauge Public Sentiment and Spot Trends
Investors can use Facebook’s popularity to actively gauge potential stock market movements efficiently. In an interesting research paper, Arthur O’Connor who happened to be a post-doctoral student at Pace University, showed how he used Facebook to track the social reputation and stock prices of over thirty brands, from Abercrombie and Fitch to Target. This is something that shrewd investors can leverage to their advantage to gauge public sentiment when it comes to consumer-facing brands or businesses they might have invested in.
This brings us to the end of our discussion on how social media can help investors. Now, do let us know some of your own personal thoughts and opinions on the same.