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StockTwits is a social network designed as a useful service for traders and investors alike. This short messaging platform is similar to Twitter, but it is more adapted to the needs of stock traders regarding current information and real-time communication. It also has additional features suitable for financial market enthusiasts wanting to share their ideas on trading. In addition to the money issues, traders can make network and meet new like-minded friends there. Actually, more than a million traders from all over the world have already registered on this website.
The founders of StockTwits are Howard Lindzon and Soren Macbeth who decided to create it in 2009. Twitter’s application programming interface was used as the basis for the development of the new graph based platform to provide traders with financial market news and to let them discuss essential points. A special cashtag ($) was introduced in StockTwits for marking stock tickers and related messages and ideas by participants.
StockTwits, Inc. is a member of FINRA and SIPC. As an information trading resource, this service has successfully competed with a number of other social sources for traders who use StockTwits as a guide for their decisions. This platform is a perfect place for getting to know the market sentiment and stock news. The project quickly became popular in the trading community, and it gained several awards in the category of the best financial applications.
Any user can see something familiar in the platform design. It looks like a stock messaging system and Twitter at the same time. The platform allows participants can exchange charts, links, and messages on various topics. Users can also create watch lists, mark their messages with bullish or bearish tags, and use other convenient features. These messages are then combined into streaming flows for each particular stock. Unlike previous inconvenient messengers, this system is simplified and well organized. Cashtags have also made it easier for traders to use this network to exchange ideas about particular stocks. This service also allows users to trade without having to log off the platform.
It is easy to register on this platform, the only thing needed is your name, email, and password. When users first enter this service, they can select from one or several rooms for chatting and viewing shared data. Some rooms are paid, but most of them are free of charge. Many amazing posts and articles on trading can be found in the blog section. Users can subscribe to daily announcements sent via email.
StockTwits broadcasts real-time message streams that can be sorted by specific tickers or by a common topic. For example, flows can be organized according to particular groups, such as stock trading, Forex, futures, charts, and so on. Thematic streaming flows can be very useful for generating trading ideas. A user can also view information in a browser or pop-up windows. Streams related to specific stocks also provide valuable aggregate data that is displayed in the sidebar.
The entire system is very similar to Twitter, where users can also sort messages by popularity or release date, as well as isolate advertising messages. In general, the website is simple and easy to use. Participants can track message volumes and market perceptions over time. Traders can also sort data and communicate with other users to exchange ideas. However, the credibility of information in the streams depends largely on the people who post messages or different announcements.
StockTwits performs quite well with aggregating data and visual representations by using heat maps. These heat maps can be used to monitor popular sectors and search for the most profitable positions in these sectors. The presence of the heat map section favorably distinguishes StockTwits from Twitter. StockTwits allows collecting data and sorting it out to make it much more useful, while Twitter simply enables users to exchange messages and organize different sections using cashtags.
The platform also has a top stock section. This can be considered a trend section since it shows assets with increasing or decreasing movements according to social activity. A special filter named StockTwits Social Media Mentions can also be used as one of the parameters in the ETRADE Pro scanner. The ability to view all social data in one place enables traders to generate the best trading ideas. In this way, StockTwits works as a kind of social scanner, that helps find assets that traders are more or less unaware of.
Drawbacks of Social Orientation
StockTwits is inherently a social network created specifically for traders who can subscribe to each other, share messages, repost data, and so on. However, StockTwits is a free community where traders can post whatever they want. For this reason, customers may encounter such unfavorable points as personal advertising, low trust rating, and significant spill-over noise.
A single company or a user can post a huge amount of advertising information in StockTwits in a short time. Many companies try to use this service and attract potential customers of their services or products. They usually send links to their own websites in the hopes of increasing their audience. This type of advertising has a minimal effect, and, unfortunately, significantly clogs information space.
StockTwits features an inability to determine the trustworthiness of information. In the world of finance, trust is a rare commodity. Here, it is almost impossible to distinguish legitimate investors from trolls or biased traders. The only parameters that can be used to evaluate the credibility of information in StockTwits is a parameter of the subscribers’ number, which of course, is not the most reliable indicator.
Finally, constant users may get too much unnecessary information and suffer from extraneous noise in the streaming flows. It can hinder active traders or those trying to conduct financial market research. This problem is typical for most social networks. However, the StockTwits support engineers could take action to filter messages according to user confidence rating.
Presence in Other Social Media and FAQ
StockTwits also has accounts on other social networks, such as Facebook, Twitter, and Instagram. The FAQ section can be found in the Help directory along with tips on how to navigate here and contact information. Customers are only able to get in touch with the company and website management by using a filling form.