Are social media platforms trustworthy trading news sources
This is a huge question, considering the influence and reach of social media platforms in 21st-century. Twitter boasts 400 million users, while Facebook has a staggering 2.9billion active users. LinkedIn, a business network, boasts 756 millions users. YouTube has 2.3billion users. Nearly half of Americans access news via social media. This speaks volumes to the amount of information that is out there and the need for people to stay connected.
Most of the established financial news portals are active on social media and it’s not uncommon for traders to hear market-moving news first on Twitter or Facebook. There are still big differences between a qualified source of news and an unqualified one, no matter how fast information travels through social media via comments and sharing.
Just as important as the news itself is the market’s reaction to the news. Social media platforms can allow you to see market reactions in real-time, giving valuable information about the human factor as well as the emotional responses that sudden changes cause.
Because social media has become so integral to mass media, some of them, such as Meta Platforms are mega-cap stocks ,…