Use Twitter to trade stocks

(TWTR) – Get the Twitter, Inc. , with 33 million users worldwide at the end of 2017, is fertile ground for social media for a myriad of reasons and for many for-profit industries.

The latest industry – and potentially one of the biggest – to connect with Twitter is the investment industry, which is turning to artificial intelligence to roll out new Twitter-based stock trading platforms.

TD Ameritrade
(AMTD) – Get the TD Ameritrade Holding Company Report is at the forefront of the development of AI-based trading on Twitter. On February 7, 2018, the investment giant deployed an AI-powered chatbot that enables stock trading, access to market information, stock quotes and educational videos on Twitter Direct Message on the 7th February (TD Ameritrade used the same technology to enable stock trading on Facebook (FB) – Get the Class A report from Meta Platforms Inc. Messenger last fall.)

“We embrace the power of Twitter as a tool for customer service because we recognize that consumers are turning to social platforms as the new 800 number,” said Sunayna Tuteja, director of emerging technologies and marketing. innovation at TD Ameritrade. “Twitter is a platform that investors are already using to chat with us and get the latest news that can impact the markets, especially during peak times like these.”

“Now we’re taking their experience to a whole new level, helping investors further gather news, do their research, get real-time quotes and take action, all without leaving the platform of Twitter direct messages. “

In an email, TD Ameritrade said it sees more than 80% of its social media chat volume on Twitter, and that the Twitter platform regularly offers a sentiment summary around a given stock based on what people are talking about, including possible trends and clues about the health and future of a business. The goal is for TD Ameritrade Twitter chatbot decipher this chatter to provide more information to investors and provide them with a mechanism to conduct stock transactions.

“It will be a high-tech and high-touch experience since the participants will be able to benefit from human support at all times of the process,” the company noted. “Customers will be able to connect privately with TD Ameritrade on Twitter and share publicly with their community.”

The idea of ​​leveraging social media, and in particular Twitter, as an investment trading tool is intriguing to Wall Street watchers.

“Twitter has enormous potential to become a tool in particular for day trading,” notes Paul Koger, chief trader at Foxy Trades, LLC. “This is especially the case with dynamic parts, where it is essential to notice actions that are in motion or that are starting to fall out of their ranges.”

Twitter is already a favorite social platform for most traders to discuss their ideas and advertise the stocks they are trading, Koger says. “Thousands of traders are changing their minds and chatting / commenting on various trades on Twitter, so it has the makings of a great social trading platform and mobile app,” he notes.

Before that reality sets in, Twitter and its outside tech developers have some work to do.

“To be successful as an equity trading platform, Twitter should develop a dedicated section for equity trading purposes,” says Koger. “Otherwise, the constant knocking off topic could kill the usefulness of real-time alerts because they might go unnoticed.”

Other professionals in the investment industry say that the actual trading mechanism isn’t what matters – it’s the useful chatter.

“There is an option to link a stock trading platform to Twitter that would allow you to trade trending stocks,” says John Anagnos, chief investment officer at Aetolia Capital. “It could be Twitter or a collaboration with another company that employs trading.”

However, depending on Twitter for trading and execution information comes with certain risks.

“There are many companies based on financial and technology data that are currently collecting and highlighting social media trends in stocks that some investment managers use,” adds Anagnos. “I’m sure there are algorithms that track sentiment on Twitter and then use that information as an additional factor. My fear is that accounts on Twitter could be hacked or replicated by bots that could manipulate interest in a security. specific.”

“There are many good trading platforms out there and there are many sources you can use to track any sentiments that might be on Twitter, Google
(GOOG) – Get the Class C report from Alphabet Inc. or other sites, ”he adds. “You don’t need to chat on Twitter.

Twitter enthusiasts who love to invest can only hope that the company, as well as the social media-focused investment firms, fixes the problems.

After all, turning gossip into big stock transactions is too good an idea not to take off, 280 characters at a time.

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