Every social media subscriber knows what happened to US markets in April last year when a hacker got it into his head to fake-tweet about the demise of Twitter itself: They fell although only briefly. It took only two minutes for Dow Jones to go down by 150 points. It did not stop at that. eMini S&P trading was also disrupted for a short while. When the tweet was proved to be fake, the recovery was fast but it showed us how social media is impacting upon trading. Everyone now clearly understands how social media can do or undo trends in investing and trading.

Trading Decisions

Market watchers opine that given the speed at which entries in Facebook or Twitter or other popular social media websites get noticed and passed on to thousands of other followers, decisions on trading could be made based on information on the pages of social media. Smart operators in trading circles can keep their ear to the ground in social media space and make quick decisions on the trending in progress. A seemingly careless comment made by an important entity in business can make or break a totally unrelated business. Twitter users are not all frivolous. Some well-thought-out remark by a well-meaning and serious member of Twitteratti can be taken as a lead for an intrepid investor to plunge in with his money to get some quick returns.

Trust Diligently

If you are interested in international business, you can make it a point to develop contacts in the countries of your operation to gauge the mood of the market and the political climate thereof in those countries. Exercising caution in this respect is important though. You cannot trust each and everybody in your contact list.

World War III and You

You cannot give in to temptation and retweet all the sensational short messages that come your way. You may not think too much about it but you could well cause World War III!

Trust Uneasily

Trading in Forex or commodities market has a tradition to take in all possible information from all possible sources, spread it all in front of you and make a final decision. Social media does not allow you such laid-back, so to speak, decisions. You do it now or never. A safe way is to take information you get through social media with a pinch of salt unless you have it from a reliable source. That is not always possible but a judicial mixture of social media messages and physical realities is what you should learn to depend on.

Windfall Returns

Social media adherents are not always intentionally trying to create a market trend. But, when they make similar comments on several social media platforms, the comments tend to acquire a measure of credibility and get repeat exposure. The aggregate sometimes manages to create a comprehensive view which may work as a catalyst for a disaster environment or if you are lucky, provide you with a windfall.

Written by: Jenny Corteza has been moderating content for highcashoffer.co.uk since a while now. Since the time she got into digital platform, her strength has been strategy and content and how to leverage it in the best possible way for a brand.