Thursday, February 09, 2012

StockTwits and Trade Ideas do Lunch

Unstructured data is becoming a more important part of the trade decision process. As the most innovative and powerful real-time stock scanner and event-driven backtesting tool out there, Trade Ideas is committed to bring our users the newest technology. Our friends at StockTwits are the leaders in bringing real-time, actionable social media data to traders, so it’s only natural for Trade Ideas and StockTwits to work together.


We’ve been working closely with StockTwits for several years now to provide a perfect combination of applied quantitative analysis and social data. Many of you familiar with Stocktwits know they provide a service for traders and investors to share market insight, ideas, charts, and news in real-time in a format similar to Twitter. And the StockTwits A.I. filters out much of the unwanted data from the stream.

Lunch with StockTwits


Last week, we sat down to lunch in Del Mar with members of the Stocktwits management and development teams to talk about several of our new features and future projects. The new social features include the ability to instantly share Trade Ideas strategies and alerts through social networks including StockTwits, Twitter, Facebook, and Linkedin. This is now available in the newest release of Trade Ideas Pro (download here).

     

Looking forward with StockTwits, we discussed interesting ways in which our data mining can be used with Social data from StockTwits. Included in the discussion were building alerts based on how much a stock is being mentioned on StockTwits, using our technology to keep a baseline and when unusual amount of mentions occur the users are notified, and tagging StockTwits posts as buys or sells in the future to create a value for every post that can be tracked and counted.  This would allow us to give StockTwits viewers a real tangible feel for buy or sell pressure on any given name. 

The bottom line is combining Trade Ideas quantitative data mining and streaming technology with social data from StockTwits is a win-win for both companies and most importantly the end user.


Traders Talk about Social Media


During a recent round of Focus Group surveys, we learned more about how traders are using StockTwits and social media. We interviewed three separate groups of traders during the last week of January and found most of them use social media to augment their trading strategies.

Some takeaways from the Focus Groups include traders who use “StockTwits to identify reversal opportunities to support/resistance levels,” and the use of “StockTwits streams as a shortcut [by using] edited, filtered stock ideas from respected traders.” Other traders make a list of stocks they know and watch Twitter and StockTwits for unusual activity.

Trade Ideas users can already choose to create a strategy that watches the most talked about stocks this hour on StockTwits or the most talked about today on StockTwits.

Social Media Tackles Investor Relations


In addition to traders sharing ideas with other traders, large companies are now issuing their public communications directly and firstly through social media channels.

An excellent case example of Investor Relations via social networks is DELL’s release of their Q4 2011 financial results (http://irwebreport.com/20110216/dell-inc-breaks-new-ground-for-social-media-in-investor-relations/). DELL’s Investor Relations team broke new ground by reporting their earnings on StockTwits before dissemination anywhere else. This was a game changer in several ways because prior to DELL reporting earnings on StockTwits the only way to get real-time earnings information was to have access to traditional channels like analyst reports and other services which can be very costly.

Implementing social media into our software is just one of the many reasons Trade-Ideas a front runner in the trading industry. We are very fired up about our new endeavors with Stocktwits and we are certain that this will only lead to other exciting technological advancements. For more information on Stocktwits, please visit their website. http://stocktwits.com/

If you haven’t already tried Trade Ideas Pro, it’s free to download and demo.  http://www.trade-ideas.com/Application/Help.html