To the unrestrained user Twitter can be a dangerous tool. Without an effective noise filter and the discipline to follow one’s own trading style users are susceptible to falling into two traps: loss of productivity and deviating from one’s trading plan. Let’s be honest, TweetDeck is seductive. One of the first things I do each morning is fire it up and start to browse any missed comments. Why? Well, partly because I’ve convinced myself it adds color to my outlook. I occasionally catch wind of market themes playing out which had flown under my radar. When used properly Twitter helps me discover trade ideas and either receive validation of my market views or lead me to question them.
The loss of productivity comes into play when I fail to tune out the noise while trying to perform other tasks. I used to pride myself on my multi-tasking prowess but have found the quality of my trading or writing increases when I shift to single-tasking. Have you ever read a shoddy blog post from me? It’s a good bet I was juggling wordpress, twitter, e-mails, and chart reading simultaneously.
If you’re not careful in who you follow you may find yourself plunging into trades which are completely outside your comfort zone and incompatible with your personality. It may seem like common sense, but if you’re not a day trader don’t follow people who continually call out day trades. All it’s going to do is tempt you to deviate from what works for you. I’ve slapped my hand many times as it reached for the buy button after reading about an alluring chart pattern.
If you’re not sure if Twitter is the secret weapon behind your trading profitability or whether it’s actually holding you back from better performance, try a little experiment. Turn it off for a week or two and see what type of effect it has on your trading. It won’t be offended. Like a comfort food it will welcome you back with open arms when you return.
For related posts readers can check out:
Sometimes I’m Infected by the Stupidity Virus
An Insidious Little Phrase
Stock Market School Beginnings
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