Today we will talk about impact of social media on financial industry in whole and personal finance, of individuals, in general. Key points that this article covers:
Research on how financial companies use social media today
How social media attract millions of financial traders
Leading to finance – social networking integration
The financial world is ever-evolving. We live in a world where information is hugely influential and as certainly the case with finance, the early bird is constantly seeking the financial work to provide him with the latest market data, through social networking sites such as Twitter.
Information travels very quickly online and financial is every bit as viral as the next sector. Such updates are now even more accessible with mobile devices and Wi-Fi hotspots all around us.
Social media has changed the way that consumers in general access information and has had a dramatic impact upon the way that we connect, both personally and professionally. Both web-based trading platforms and communities are immensely popular and many people believe that social networking has led to increased trading volume. It has been reported that more than 50 per cent of consumers are accessing online tools in order to make their trading decisions.
There are social sites dedicated to news and social networking sites dedicated to certain niches that aren’t just geared towards the masses likes the Facebooks and Twitters of the world. Online investment communities are perceived as being a valuable social networking tool in the financial sector. They combine networking and news and bridge the investment communities and financial markets.
Many websites have begun to integrate social networking activities into their market analysis and portfolio management tools. CNN Money, for example, now include a chart that updates company press releases, earnings, live news feeds and, of course, prices. Other websites possess the ability to follow other people’s portfolios as well gaining access to collective intelligence within visual information sources such as stock charts.
Social networking sites enable us to share connections, sources and ideas which, without having the necessary contacts, would have been unavailable to use. The internet has levelled the playing field, to a degree, by allowing us to capitalise on the information that valuable sources are sharing online.
The combination of experts’ willingness to share and the financial marketplace, you could be improving your trading portfolio with just a few clicks of the mouse. We are now able to view other trader’s portfolios and use them as inspiration to create our own, taking financial restrictions and other circumstances into account.
The opinion of analysts has always been pivotal in determining whether as asset should be deemed a good buy or sell. Opinions can dictate both positive and negative outcomes. You can find information to support both sides in most cases. Combining financial option with social networking allows the user to use a broad range of date and take on a more consistent and objective view as opposed to idly accepting news from company press releases or one-sided views.
An increasing number of financial sites are turning into social networking search engines. They are not limited to merely information regarding companies or assets but they also allow data from thousands of sources, as opposed to merely a few, pertaining to rating analysis and personal experiences.
The little guy now has a chance to catch up with investment firms by accessing these sites at no cost and containing huge volumes of information without having to go and seek it out by, at which time, it may just be old news.
Social media attracts millions of financial traders who wish to reach out and talk about their trading insights and strategies. The more enterprising ones use blogs and social networks in order to obtain information as opposed to sharing what they have learned. They source information from discussion groups on LinkedIn and Facebook, blogs in investment advice and strategies and recaps on YouTube.
Trading then, in essence, becomes asocial activity to these traders who are constantly seeking information. You will undoubtedly find networks and discussions started by online trading professionals on a large number of social media sites.
Forex is one form of trading which have been heavily influenced by social media. All of these social media-based activities combined reveal a primary shift in the focus of web-based forex service providers. They know all too well of the stereotypes that were created when forex was made available to the average person.
Online trading forms are fast closing the gaps that make individual trading not as regarding as when trading with a major firm. They are fast coming to the conclusion that the best way to achieve this goal is through social media.
Numerous traders are looking to social media as their sole source of information, discarding the likes of the Financial Times and the Wall Street Journal in favour of a more up-to-date source. Spread trading relies heavily on the very latest data and news and financial experts are now making their feelings known through social media. And where there is a financial expert ready to talk, there will be a large number of financial traders only too eager to listen.