Trading and Market Tends: Another Direction the Influence of Social Media Spreads

In 2010, Facebook became world’s most visited online resource beating Google to it. As a countermove, Google started its own social networking space. This particular move gives us an idea about the time we live in.

Social Media has grown and is no longer just a space for communication and content sharing as it originally began. Now social media has started to influence the success of business and has become a thing of interest for investors and consumers.

In 2011, social media began to significantly influence the global markets too such an extent that now it helps in determining trading strategies and stock value.

The number of people using the social media has risen quickly. The people involved in social media have started to involve it in their decision making processes. Brands found social media as a great space for advertising and meeting potential customers. People use this place to know about products and services and see if people recommend it. Businesses keep track of the activity on these pages and understand their customers. An analysis of the feedback from this space helps them with improving their products and services.

Research shows that, this space that brings together the seller and the consumer is the largest online source of data. Universities of Manchester and Indiana conducted research that suggested that the data gathered from the social media could help predict stock market trends and movements. Twitter Hedge fund’s first month of success is attributed to this. Many investors have now taken interest in the data generated by the social media.

The emotive nature of the tweets makes data mining on Twitter comparatively easier. Facebook and Youtube contribute to predicting the individual stocks and market through page views, fan counts and likes etc. Though the data obtained from the social media is not absolute, it is a much easier way for investors and sellers to understand their consumers and share information. Presence in the social media has become a must for brands and businesses. Social media has helped in widening the community of retail trading. It also helps them in understanding each other and opens up pathways for collaboration.

Unquestionably, social media is influencing traders and investors. Though the data comes in sheer volume the right treatment would help an individual in understanding today’s market.

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