The Evolution of ‘Social Investing’ Part 1 (TWITTER)
For those who have been following me the past 3 years or so I commend you for sticking around and thank you for your continued support in the form of comments on this blog as well as feedback on twitter. The ‘social investing’ phenomenon has evolved into a entirely different animal from it’s original blogging form.
Twitter has spawned communities such as Stocktwits & Bulls on WallStreet which allow for trading ideas and or market commentary to be shared instantly and as it happens. The speed at which information is transferring from individual to individual is breakneck; a trader can observe a happening on the floor in Chicago and in 20 seconds relay this information to 5k (or whatever the number may be) of his followers around the globe. No CNBC needed, no Bloomberg, no 100k email address database to get the word out. But is this good? Or is information moving to quickly, do to many people have access to information they may interpret wrong?
These are questions which we must bring up now that our markets are roiled the number of traders participating in ‘social investing’ have exploded. The school of fish that is the social investing world may not be quite yet ready for the keys to the Ferrari.
What happens when you let someone drive a sports car who has not driven one before and or has not been schooled on how to operate the vehicle in panic situations? Mistakes which lead to crashes.