Sentinel 1973 – on the Role of Social Media in Forex Trading

AUCKLAND, NEW ZEALAND / ACCESSWIRE / December 21, 2017 / There is little doubt that social media platforms have fundamentally changed the world, affecting personal interaction, business practices, culture, and politics. What started out as a tool for keeping in touch with close friends is now a ubiquitous presence with far-reaching effects, with market players also finding that social media can make a valuable contribution to their operations. One community that was quick to realize the potential was that of currency traders and an expanding body of evidence suggests they are on the right track, says leading forex broker Sentinel 1973.

Where business is concerned, social media became a near-obsession for brands when they realized these platforms could take promotional campaigns to a whole new level and foster engagement. These benefits also apply to forex trading companies, but the community has gone a step further, establishing networks that bring traders together to share ideas and information. However, social media outlets are doing far more than connecting forex market participants: the sheer amount of real-time data offers tremendous opportunities in terms of predicting market movements and trends, as Sentinel 1973 notes. This was one of the conclusions drawn back in 2010 by researchers from the Universities of Manchester and Indiana, and numerous studies have been conducted in recent years to explore the impact and implications of social media for markets in general and forex trading in particular. The focus has been mostly on micro-blogging platform Twitter, which appears to have an edge due to the quick dissemination of information and its reputation as the first source of breaking news. The latest developments in global politics and business affect currency values and immediate access to such information can influence the success of forex investments.

A recently published paper bolsters the case for capitalizing on social media resources in trading currencies. Vahid Gholampour and Eric van Wincoop, the University of Virginia academics who conducted the study, found that relying on predictions tweeted by what they called “informed agents” resulted in risk-adjusted returns of 1.68 as opposed to 0.44 for strategies focused on long-term carry trades. The researchers combed through data from October 2013 to March 2016 and analyzed tweets dealing with predictions on euro values. “The level of performance definitely surprised me. It confirms the idea that Twitter is a good source of private information,” van Wincoop told Bloomberg. He went on to note that any model of financial investment relies heavily on the expectations of others and traders can find this private information on Twitter. Where social media is concerned, the challenge now for market participants is to find effective ways of filtering the mass of data to extract the truly valuable information.

Operating from global headquarters in Auckland, New Zealand, Sentinel 1973 is a regulated and licensed provider of platforms for specialized trading, contracts for differences, commodities, and spot metals. The company enables transactions in financial products both on over-the-counter and organized stock markets, assisting with proprietary trading technologies and expert advice. With 10 platforms and more than 200 financial instruments to offer, it serves clients in over 180 countries in Europe, Asia, Middle East, Africa and Latin America. Its international operations are supported through offices in Hong Kong, Tel Aviv, Oslo, and Sao Paulo.

Sentinel 1973 – World Leading Trading Broker Chosen by Customers: http://sentinel1973news.com

Sentinel 1973 – On the Heightened Restrictions for China Foreign Investment: https://finance.yahoo.com/news/sentinel-1973-heightened-restrictions-china-050000654.html

Sentinel 1973 – Discusses Factors Causing Currency Appreciation/Depreciation: https://finance.yahoo.com/news/sentinel-1973-discusses-factors-causing-054500399.html

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SOURCE: Sentinel 1973

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