Earlier today I came across an article from The Wall Street Journal that talked about yet another innovative and growing use for social media. The article focused primarily on 36-year-old Justin Pulitzer, one-time club promoter who is now primarily using social media to pursue his goal of being a professional trader.
With a portfolio in the $1 million range, Pulitzer has been relying heavily on Twitter for research and communication, and plans on launching a paid subscription service to build on his following. Pulitzer noted the transparency of social media as one of the main reasons that he enjoys operating in this capacity.
“If you’re right, you’ll get a lot of accolades,” he said. “If you’re wrong, people will know it too.”
Another aspect that the article talked about was the level of engagement that online brokers are seeking, as the numbers have showed increased amount of trading in conjunction with posting on social-media-like offerings. TradeKing, an online broker founded in 2005, noted that customers who consistently post on the company’s portal trade four times as often as those who don’t! Stockwits, a seven year-old investing focused social network, more than a million registered users post 100 messages a minute during market hours, up 70% from 2014.
One of the portions of the article that I found most interesting was where experts shared that the size of your online following does not necessarily correlate to success. Obviously, well known names from well known businesses are likely to have more followers, as they have more money to spend on research and therefore they are likely to be more on the forefront.
I feel as though this evolving culture within trading is similar to many other examples that we’ve seen throughout the semester, as it’s becoming more personal and more transparent. The smaller but potentially more innovative players in the game will be able to engage those interested because they are able to relate to them through social media. It will be interesting to see how this plays out going forward, but you’d have to imagine that social media will continue to be a big part of what is to come.