How StockTwits Helped Me Last Week
- Posted by Joe Fahmy
- on December 11th, 2010
Last week, StockTwits announced a cool new partnership with Yahoo Finance (click for article). Since this will bring many new users to StockTwits, I want to share a few ways how I utilize the Network and also describe how it helped me last week.
When I use the phrase ”define yourself,” I mean decide if you are a trader or an investor. Once you decide, it becomes easier to develop a clear strategy. For example, I defined myself years ago as a “swing trader.” I hold stocks anywhere from 2-3 days to 2-3 weeks and try to take advantage of shorter-term moves. This works for my personality but it might not work for yours. You may find that day-trading is more your style or that long-term investing better suits your personality.
Once you define yourself, you can use StockTwits to help improve your results by following people with similar styles. A great way to find these people is by going to StockTwits.com and typing in the symbols of the stocks you are trading to see what members are also watching the same stocks. Here are a few examples of how StockTwits helped me last week:
1) Idea generation! This is THE NUMBER ONE WAY I use StockTwits. I always love hearing about new stocks because they could be ideas that fit my criteria, but don’t show up on my stock screens. Last week, @zortrades brought $RADS to my attention and @downtowntrader mentioned $ZAGG. I follow these traders because we share similar styles and they bring tons of ideas to the stream. One important reminder: DON’T BLINDLY BUY A STOCK! I recommend filtering the ideas down to the ones that fit YOUR investment criteria. As @alphatrends says: “make these ideas your own!”
2) The Blog Network! On Thursday morning, I almost sold $LULU for my clients at $61 in the pre-market session. Thankfully, @stevenplace posted an article about the options activity around $LULU’s earnings and why he was expecting a short squeeze that morning (click for article). Since his blog post made sense to me, I decided to give the stock room to run in the morning and sold it at $64.50…another example of how the stream helped me increase my profits last week.
3) More Sets of Eyes! On Friday morning (around 10AM EST) as the NASDAQ Composite dropped 10 points, @traderstewie and @OptionRadar pointed out the relative strength in $SNDK. Although the stock was already on my watch list, I was busy watching other stocks and didn’t notice how well it was holding up. These traders essentially acted as an additional set of eyes for me, and helped me get in the stock for my clients early in the day.
I could go on and on discussing all the great traders that I follow and give examples of how they have helped me; However, the main point of this article is to encourage you to utilize the StockTwits Network of websites, and to find the members that share similar investing or trading styles as you. Keep in mind that you have to do your due diligence. It takes time to develop a good network of resources, but trust me, it’s worth working at it!
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.
Joseph Fahmy is the managing director at Zor Capital, LLC, a New York based investment management firm. Joe has over 17 years of trading experience...More »