The social media revolution is well underway in all aspects of our lives. This phenomenon has, in the last few years, proven itself to be quite the transformative power: it’s in part responsible for vastly improved communication between friends and family members, for example, while it has also given people the chance to discover new things and be surprised on a daily basis.
But how does foreign exchange trading intersect with social media? How have the behemoths of the social media landscape changed trading?
Breaking news
These days, one of the main ways that people get access to information about what’s going on in the financial world is via social media. If you’re a forex trader, breaking news is an essential part of the trading process: you need to make sure that you’re on top of any potentially market-moving announcements, such as interest rate rises from central banks.
Of course, breaking news doesn’t simply land in your lap as a foreign exchange trader. Instead, you have to make sure that you curate your social media feeds so that you’re following the sorts of pages which will provide you with the news you need to inform your trading experience.
Sharing tips
Another way in which social media can aid when it comes to foreign exchange trading is in the world of tip sharing. Sharing information about which foreign exchange pairs to trade or what the analysis charts are showing is much easier than it was in the past, not least because social media can make the process a two-way street. It means, for example, that you can respond in real time to tips that you come across, making the process into a conversation rather than a received lecture! Social media reviews can also help you when it comes to selecting a broker. Respected websites like WeCompareBrokers, which produced this ForexTB broker review and many others, are also helpful.
It’s worth remembering, however, that a tip shared on social media is definitely not necessarily going to be accurate. Anyone can post on social media – and the flip side of the increased democracy of anyone being able to participate is that it’s in some ways harder to identify the “experts”. And the responsibility still lies with you to check before you trade. If you want to outsource all of your trading needs (while still bearing the risk and the potential for reward), you can head over to a specialist copy trading platform which will allow you to properly outsource your trading.
DIY analysis
Finally, it’s worth looking at how social media has allowed foreign exchange traders to do their own analysis in a way that wasn’t possible before. Follow the right social media accounts and you will soon begin to find that there is a huge range of clips of trading charts posted to the web by others in the trading field.
These can allow you to gain different perspectives on what each chart might signify. You might, for example, notice that one particular trader has had a unique insight into a chart, and has shared it on Twitter or elsewhere: without being on social media, you might well have ended up missing that insight, and would never have otherwise factored it into your thinking and trading decisions.
In short, social media and forex trading have become deeply intertwined in recent years. While it’s certainly still possible to have an active and successful trading life without going on social media, it’s also the case that social media offers a plethora of useful resources which can enhance your trading life in a significant manner.