Twitter, Facebook, and other social media are increasingly influencing trading and investing, according to people who have something to sell you based on this notion.
Not so says Mike Driscoll, a former Wall Street equities trader turned Adelphi University professor, who likens social media market commentary to anonymous chat rooms in the late 1990s, where people tried to “pump and dump” obscure, thinly traded stocks for a quick profit.
“I don’t see how this in any different,” Driscoll says of Twitter, StockTwits, and other offshoots.
One difference is the presence of online retail brokers like Zecco Trading, or , an outfit based in Hong Kong started by former E*Trade Financial executives, that look to combine social media and trading.
Those companies share a common investor, Dutch financier Willem Willemstein, and allow users to see each others trades in real time.
“If you say that you like Apple, and you bought Apple, people can see that it’s true because your trades are posted automatically, and people can go in your portfolio and see what you’ve bought and what you’ve done with it," explains 8 Securities executive chairman Matthias Helleu. Zecco, meanwhile, allows you to place a trade directly from your Facebook page.Page 1 of 3 | Next Page