Use Finance Twitter to Stay Up to Date with the Latest Financial News.
The world we’re living in is moving so fast that everyone is having a hard time keeping up with the changes. Just imagine the fact that two decades ago the Internet was in beta mode, and smartphones came into our lives only a few years back. As in all areas surrounding our lives, we as traders need to adapt to this ever-changing environment and make sure we stay up to date with what is happening around the world that can affect the currency market. As traders, knowing what is happening in different regions of the world gives you a competitive advantage that might be enough to allow for the right positioning. As explained in the articles dedicated to fundamental analysis, trading currencies means interpreting the economic news from those specific economies that make up a currency pair, and trading the difference between the two. However, what is to be done if one has no idea about how to interpret economic news? I mean, are all traders economists? Is an economic background mandatory for Forex traders? The answer to both questions is, of course, no. What traders need to do is to be able to find out the right information from various sources, and use that information to their advantage when day-trading the currency markets.
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Twitter is one of the big social media corporations that has taken over our lives recently, together with Facebook, Pinterest, Google+, etc. The idea behind Twitter is that information is transmitted/sent in Tweets (small sentences/phrases no more than 140 characters long), and this somehow makes it more relevant than reading an entire article dedicated to one subject. Moreover, Twitter gives you access to some brilliant minds from every corner of the world and from any sphere you may be interested in. Finance is one of them, and, as a matter of fact, the Twitter finance community is extremely powerful and influential. This makes it a must for the Forex trader, as the news travels faster than regular email or other news channels, and you can quickly see what other economists are thinking about a specific event. To give you an example, imagine that the European Central Bank (ECB) decides to tighten the monetary policy, and in doing so it raises the rates. Together with such moves, other monetary policy tools may be used, such as suspending TLTROs, etc. Not everyone knows what TLTROs are, and they shouldn’t, but to find out how/whether the ECB decisions influence your trade, accessing Twitter Finance will answer your questions.
Who to Follow on Twitter when Trading Forex
From institutions to individuals, from macro- to micro-economists, from presidents to prime ministers, everyone has a Twitter account. A Twitter account that doesn’t just exist, but is actually being used!
Central Banks and Central Bankers
You’ll be surprised (or not) to find out that all the major central banks (and the regional ones) have a Twitter account! This makes it easier for a central bank to communicate to market participants its decisions, details of its decisions, specific events, changes in the calendar, links to important speeches, etc. In other words, it is just another way of communicating the message and the monetary policy to the general market. It means that the central banks have adapted as well, and they are now an influential part of the Twitter finance community. Moreover, even central bankers (especially regional central bankers, like the heads of a regional central bank in the United States that is part of the Federal Reserve system) have their own Twitter accounts. It is also used to further communicate their stance on sensitive monetary policy issues. Polls are conducted on Twitter as well, as central banks try to gather information regarding how/why the market interpreted some piece of information the way it did. More recently, there are also Twitter Q&A sessions with one member of a central bank. During such sessions, traders/economists/researchers in general – in fact, anyone with a Twitter account who is interested in monetary policy and the reactions to it – can ask a question using a specific hashtag. The answers given are going to influence the way the currency market is moving, so here it is: Twitter playing an important role in day-to-day currency market trading.
Economists to Follow
Bright minds from the economic world express their views on Twitter. From financial managers to heads of financial institutions, from economists following a specific central bank to fellow traders – Twitter is an ongoing source of fresh information. Constantly following such accounts leads to a proper understanding of how a market is moving, what is important and what is not relevant for the currency market, as well as how to read a specific monetary policy announcement. For example, all these people watch all the economic events relevant to market participants closely, such as press conferences held by a central bank. A good example is the ECB press conference that is held after every time the central bank meets to decide on interest rates. During such an event, snippets are transmitted, and these economists discuss their importance/interpretation on Twitter. This way, one can learn what is important and what is not, what is influencing a currency and what is water under the bridge, etc.
The whole of the financial media is represented on Twitter. Starting with Bloomberg and ending with whatever financial newspaper in whatever part of the world, social media presence is a must for these companies. This keeps a trader up to date with everything that is happening around the world that is worth mentioning from an economic point of view. Everything you need to know for the intra-day trading as well for swing trading is there, and all you have to do is to filter the information in such a way as to suit your trading style. Everything mentioned in this article is intended to make you aware that the world is changing, and traders need to change to keep the pace. Without the ability to do that, sooner or later it is going to be reflected in the trading account, as information is key to every trader’s success.
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