How to Use Twitter to Trade Stocks
Twitter is like the Wild West. There are no requirements to be an expert and there are many swindlers and fakers. Additionally, there are many honest hard working individuals who are helpful and can benefit your trading. If you want to use Twitter to trade stocks you should have an account just for stocks and only follow a few people.
Limit your Twitter Feed
The key to using Twitter effectively, is to limit those your following so your feed is not full of noise. If you are following 300 people and they each tweet or re-tweet once a day your feed will have too many tweets for you to read. Less than 50 and closer to 30 is ideal. In the morning, before the market opens, you want to information about stocks that you could potentially trade. Later in the day, it’s good to see trade reviews to see what strategies people are using. If you are following too many people you will have a harder time finding what you are looking for.
Follow People who Provide Value
Now that you’ve decided to reduce the number of people you follow, you need to determine who you should follow. Follow people who provide value. There are three things that I believe give value. First, I like to follow people who alert information about a stock. @psk2329 gives information daily about stock earnings, analyst calls, and general news events. Second, I like to follow people who give trade ideas. @TradeWithNinja runs an options trading room but is always tweeting about potential plays. He is vague on twitter about his strategy but you can infer what he is thinking if you read his tweets for awhile. Finally, I follow people who show details of their trades after the fact. This is helpful to see how other people trade and decide if you want to use that strategy. @AjTrader7 runs Awesome Calls Trading chatroom and provides daily reviews on Twitter of the trades he took.