We all have felt the power of social media growing to tremendous heights for the last 10 years and still counting. Platforms such as Facebook and Twitter were initially used as places where people connect with one another. As time went by, they became places where active advertising, marketing as well as publishing could be successfully done. Google used to rank as the best and the most accessed online resource but since 2010, Facebook has overtaken Google. Since then, social media became dominant and the impact is felt even in the trading world. Why is that so?
1. Social media brings trading companies closer to the community
Through social media, the trading company gets closer to the target audience. It is able to directly interact with the customers building and strengthening their trading ties. On top of that, the company is able to harness helpful information from the target customers.
Smart traders have also discovered ways to familiarize and attend to their customers’ needs through social media platforms. The secret is getting to know what the clients are looking for from the company. When a company is able to understand its clients and consider implementing solutions to their problems, that is a plus to the trading company.
2. Speedy news circulation
This is exactly where social media’s strength lies, the speed that news goes around. As soon as a tweet is posted, it reaches millions of people in a short time. Following the Finance Magnates website, we see a single tweet from Carl Icahn (billionaire) making millions for Apple’s stock in minutes. On the other hand, CSX Corporation lost millions in Maryland after a train collision still in minutes. These events are now exposed to the chance of changing the market in minutes through social media platforms.
3. Social media is surrounded by data
Social media platforms receive huge numbers of posts on a daily basis with different data that is so beneficial to different market analysts. These data help gauge the perception of the target audience towards different entities, countries, and sectors. We have seen experts setting up websites as a way of trapping people’s opinions that are believed to be worthier than the analysts on the ground.
4. Offers the platform for interconnectivity
Social media has the base for a highly connected world. Traders have the platform to gather and exchange ideas and to learn what is practical and what is not as they make their trades. The network of traders through data and effective communication has been able to take trading in the right direction over the years. Traders have the chance to enquire and gather the knowledge they need before venturing into the market.
5. Complex trading made simple.
The social media has made the complicated trading business become more approachable and accessible. The traders are seen offering support as much as possible to their target group through social media. Complex terminologies and concepts have been simplified through social media making the target audience find them easy to understand. This was never seen when social media was not so active but the impact is greatly felt today.