Today, social media updates are as much of a tool within a trader’s arsenal as technical reports and analytics. In particular, social media has become a vital resource for forex traders. To understand why, it's important to look at what forex trading is. When you learn how to use forex trading platforms, you'll see that data and prices are constantly changing. In many ways, forex is a high-octane style of trading because "pips" create micro-movements in the value of a currency. Because of this, it's important to stay on top of the latest political and economic headlines. This is where social media comes in. Because platforms such as Twitter provide real-time data, they can help forex traders get ahead of or, at least, be on the curve.
Social Media Makes An Impact On The Markets
Of course, this is true for all types of trading. However, the fast-paced nature of forex makes social media particularly useful. Many professional traders understand the value of real-time information and the impact it can have on forex. When a prominent person or organisation posts something, the markets can swing. Few business owners understand this better than Elon Musk. The Tesla CEO has caused his company’s shares to go up and down off the back of a single tweet or, most notably, an appearance on the Joe Rogan podcast. US President Donald Trump is also a master Tweeter.
In July 2019, a single tweet from the President caused the value of the US dollar to dip. When Trump claimed China and Europe were playing a “currency manipulation game” and that the US should hit back, the Bloomberg Dollar Index suffered. Traders can’t overlook variables like this. Although charts and technical analysis are vital resources, social media content is becoming increasingly valuable. People that once didn’t have a voice, or that had a voice we didn’t hear very often, can now speak their mind in a few characters. When that person or organisation is suitably powerful, it matters.
SMM Strength
Today, politics, business and life are conducted via social media. The age of privacy has gone and more people than ever have a public platform. Traders can’t ignore this. Moreover, businesses can’t overlook the power of social media. All actions cause a reaction. A tweet can swing public opinion just as much as it can change the value of a currency like the US dollar. Therefore, any business owner or trader must understand the value of social media and, more importantly, the impact it can have on their fortunes.
