The Seven Habits of Highly Effective StockTwits
- September 5th, 2010
We are often asked the question: “How do I get on the Suggested List?”. While there is no straightforward formula, there are some qualities that the best people on StockTwits share. Phil Pearlman wrote an epic post a while back, “Just Be Awesome”:
You want to be awesome by generously providing the best information in a way that is captivating and to do so consistently over time.
It doesn’t matter what you are selling, if you have an area of expertise then share it and then keep on sharing it. If you can’t communicate effectively then find someone in the organization who can.
Twitter provides the potential to impart information with a global audience for every vertical no matter how narrow and as a result organically promotes meritocracy.
Just being awesome will bring you credibility and trust and everyone who is interested in your field from customers to potential customers to journalists to prospective employees will become aware of your awesomeness and seek you out over the long run.
You will build brand.
Phil touches upon the broad. Let’s delve into the more specific.
The Seven Habits of Highly Effective StockTwits
Habit #1: Unique
Effective StockTwits bring something unique to the table. Whether their specialty is option volatility, technical analysis, market news, or energy, they come to StockTwits with something new and original that adds value to the community.
Back in Ancient Greece, the Agora was the center market and meeting place in town. Merchants would come from all over the world with goods, but also with stories of far away lands, which brought people to the market. StockTwits is the Agora of the financial web. Effective StockTwits will come to the our Agora with the best and most unique financial “stories” and expertise to share.
Habit #2: Transparent
Social Networks, whether online or in real life, rely on trust and transparency is the foundation upon which trust is built. Transparency not only means being open but also accountable. Transparent StockTwits realize that the best guys are wrong 49% of the time and have no problem taking losses or acknowledging when they are wrong. Two great examples of this are @johnwelshphd and @Legacy_Trades.
Habit #3: Brevity
In Hamlet, Shakespeare writes, “Brevity is the soul of wit“. The most effective StockTwits say the most with saying the least. This doesn’t mean sharing less, but sharing only the information that you feel is material. Effective Stocktwits don’t tweet every little market thought, but nearly every market thought they share is of value and is actionable. A great example of this is @OptionRadar, who has a great signal to noise ratio.
Habit #4: Listeners
Effective StockTwits are great communicators and great communicators are great listeners. This means listening in on the conversation going on, whether it be for a particular symbol or stream, and adding value. If you’ve ever had a conversation with a poor listener, they are repeating things that have already been mentioned or talk constantly about themselves. Listeners are users of StockTwits first, and understand what type of information a user is looking for. Great listeners enhance a conversation, and since StockTwits is a real-time market conversation, effective StockTwits are fantastic listeners.
Habit #5: Constructive
Markets are stressful. Sharing a virtual trading floor with others who are under stress can sometimes be a difficult situation. The most effective StockTwits are those who are constructive – they help improve the situation for all. Whether this be adding useful information, a bit of humor, providing help, or disagreeing with someone in a friendly and helpful manner, constructive people help keep the StockTwits virtual trading floor running smoothly and effectively. Great examples of this are @ReformedBroker and @TraderFlorida.
Habit #6: Timely
StockTwits is a real time platform, so those who are timely with information are definitely effective. Whether this be sharing an economic release, some volume breakout, or any piece of market-sensitive news adds a ton of value. Some great example of timely StockTwits are @oktobernv, @Street_Insider, and @BreakoutBeacon.
Habit #7: Go Beyond the Trade
While there are certainly some great traders on our site, the most effective ones go beyond the trade. Nobody should follow anyone blindly, so just tweeting trades or entries and exits is of limited value. Everybody’s style, timeframe, and risk tolerance differs so those that add the most value are the ones who give color to their trades and ideas. Color can be in the form of providing a setup, trade characteristics such as stop and targets, as well as simply some actionable research with a take on it. Everyone should have a reason for getting into a trade, the most effective StockTwits share that reason with the community.
While not every great StockTwits has all of these traits, most have some. I’m sure we left some off, so please feel free to chime in and add to the list.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
StockTwits® is an open, community-powered idea and information service for investments. Users can eavesdrop on traders and investors, or contribute to the conversation and build their reputation as savvy market wizards. The service takes financial related data and structures it by stock, user, reputation, etc. More »