There are very many modern technological advancements that take place all over the world in the present day. One of the areas of internet technology that has arguably witnessed a lot of growth in the more recent years is social media. Every person who is computer literate and has access to consistent and reliable internet is linked to at least one social media account. On the other extreme, there are people in the world who practically live their lives online and spend practically every waking moment of their lives at these social internet sites. The topics of discussion at these sites cover a wide and extensive range of issues and there are practically no boundaries or limits as to the field that can be discussed. Twitter and Facebook are just a few of these social networking sites that stand out from the rest, basically because of their extensive outreach and large subscriber base. A study of the trends and discussions that go on at these sites would provide useful insight into the trends and patterns in the market that are most popular for discussion.
In the recent times, a number of companies have been waking up to the realization of just how insightful a study of the activities at the social networking sites can be in the prediction of future market trends. It is possible to predict the direction that a particular product or service is bound to take in advance by analyzing the way it is received, a feat that can be achieved by careful examination of the social networking sites. When a particular commodity shows popularity at particular social sites, this is a clear indication that this product or service is being equally or better received in the market. As such, studying the trends at the sites in terms of the hottest discussions and issues would be beneficial in predicting whether or not a product is going to be successful. The use of social media analysis for business purposes is relatively new and one which most people would argue has not been fully explored. Even though there are already a number of websites such as The Internet Time Machine that are dedicated to the analysis and interpretation off trends in social media for business predictions, the fact still remains that the idea is still not at its final stages. This explains why there are still studies being carried out in the field. The studies are aimed at the determination of both the capacity and potential for the use of social media. One such illustration is evident in the grants that have been issued for studies in the field, notable among them being the recent grant of $10 million issued to an MIT professor. The grant was intended to be used in the conduction of studies geared towards establishing the viability of Twitter for use in the conduction of trade. There are numerous other similar studies that have been set up and the objectives of these studies can loosely be said to be the same. Twitter is not the only social networking site that has been the object of such studies. Other sites have also been beneficiaries. The subsequent parts of this article will be dedicated to a discussion and overview of how hedge funds and other entities are using social media to predict FOREX moves as well as other stock moves.
v The use of social media in predicting stock moves
There is a lot of information that is exchanged over the internet in social networking sites. It is a fact that at any one time, there will always be someone who has some new information on any given issue. The exchange of such information that is always going on at the social sites has great potential for use in predictive analysis. Knowing the products and services that excite the interests of customers is an essential pointer or indicator in predicting and directing the kind of policies to be adopted for the long-term operations of the company. One of similar pilot projects that have been set up in the recent past and which has shown attractive and very promising results is The Internet Time Machine Project which has been around for a while now. The purpose of the project is simply to monitor worldwide conversations, with the ultimate aim of identifying the trends and ideas regarding new products. Whenever a company introduces a new product or service into the market, it is inevitable the proprietors of the company will be interested in establishing in advance the kind of response that their product is likely to receive. A lot of time and resources could be saved if the company was able to access this kind of information. Unfortunately, in the past there has been no way to predict the outcomes of new ventures. Today however, the situation need not be the same and is a far cry from what was witnessed in the past. A study of the Internet Time Machine project mentioned above should at this point serve to shed better light on the kind of achievements that can be made when social networking is linked to business forecasting. The project is dedicated to the monitoring of worldwide trends and conversations and has been very successful at this task. In fact, only recently they announced the rerelease of the first public access version to FOREX trading based on search volume and social media, known as ITM Financial. (see www.SocialForexSignals.com)
v The use of social media in FOREX trading
FOREX trading is one of the modern business fields that continue to hold a lot of mystery for many people all around the world. As any FORREX trader will most definitely tell you, FOREX trading is highly speculative. It has often been compared to a game in which the accuracy of your speculative decisions is the only determinant between loss and profit. As is the case with any speculative activity, inside information is practically invaluable. Simply being able to accurately predict the changes that are bound to take place in the course of FOREX trading gives any trader an insurmountable advantage. Of course, the employment or user of such insider information is against the law in most countries around the world and would attract harsh fines or imprisonment if discovered and this is why most people and firms resolve to simply keep off the same entirely. Imagine the advantage that you or your firm would enjoy if you could find a source of information that gives you insight into the future of the FOREX while remaining within the boundaries of the law and acceptable ethics. This is precisely the kind of advantage that is gained when social networking is combined together with business forecasting. One website, www.ForexSocialSignals.com has been at the forefront in the provision of these kinds of services to all prospective individuals and businesses.
In light of the above discussion, it is clear that social networking has a lot of potential for use in business that has not yet been fully harnessed. The number of companies who are trying to make the most out of the sites is not very large, but it is expected that this number will most definitely increase in the recent years as the benefits of doing so continue to become clearer. This is probably the best time to make use of the social media sites for your business as the costs involved are not yet very high and are within the reach off some of the most modest of budgets. As more people and organizations get to know the kind of advantages that they stand to gain by using social networking, the costs of the service will most likely increase and they may not be as affordable in the future as they are today.
The capacity and potential for the incorporation of social media into business forecasting and online trading is not unlimited. There are a number of factors that serve to limit the kind of growth that the sector can attain. One such factor is the possibility of flooding of information which would have the effect of retaining the status quo as far as the availability of the information is concerned. It is easy to see how this could happen especially in the sense that once every person has or is in a position to easily access inside information on any particular issue relating to stock movement or FOREX trading, then the benefits of such inside information cancel out and it is almost as if there was no inside information at all since it is of no use to anyone. Thus it is just as imperative to contain the flow of the information collected from conversations at the social sites as it is important to find such information. There are a number of ways through which this can be achieved, and it is encouraging to discover that most of the key players in the field have put up a number of measures aimed at controlling how the information is distributed or used. Of course, not all the information that is collected through such programs as those at The Internet Time Machine Project is dangerous or even requires regulation and control. In fact, a number of them provide information that is best utilized when it is reviewed by as large an audience as possible. Examples of this kind of information include facts about emerging or future purchasing trends in particular markets which can be deduced from monitoring the conversations and discussions at the social networking sites.
v Applications of search engines in business decision- making
Another important component that has shown great potential in business predictions is the search engine. Search engines contain a lot of useful and insightful information about customer behavior that should prove invaluable to any business that is seeking to learn more about their customers. The most popular search engines in use today understand the need to establish search patterns from the searches that are conducted at their sites as well as the application of such data in making sound business decisions. In case you are wondering just how the search engines can be employed in the making of business decisions, then this discussion should prove to be of great benefit in shedding better light on the subject. Normally, people visit or use the search engines when they wish to find particular information about a given subject but do not really know the precise place to seek for it. From the search results, they can then decide on the website to visit which they feel will be able to best satisfy their needs. The search engines themselves store all of the search topics that are raised by users. There are some topics which from time to time will invariably exhibit a larger volume of searches in comparison to the rest. Whenever a given issue is searched so much at the search engines, the indication is that many people are aware of it and that it is having a considerable impact in some part of the universe.
Therefore, if a company were to introduce a new product into the market, the volume of searches relating to this particular product are a more than fair indication of the kind of reception that the product is receiving in the market. The more searches relating to the product that are recorded at the search engines, the more the impact the products are having. The application of the internet search volumes in business is not very different from the manner in which the social media websites are applied. There are a number of dedicated sites whose primary objective is to analyze search engine topics and identify any trends therein so as to uncover results that can be applied in the making of important business decisions. Google trends looks at purely the demand side, as it show just search query volume. Supply side studies as defined by organic results or pay per click advertisers are not taken into account in Google trends. Supply and demand curve monitoring are done by startups like The Internet Time Machine project.