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    What to Look for Social media on forex markets

    The Forex market is by far the most exciting, fast paced market in the entire world. As such, many people know a thing or two about it, and lots of people want to share their knowledge.  When it comes to Forex education – there are two options. One is buying a Forex course and using the information included to get yourself going, and the other is to use the free sphere of social networking to enhance your knowledge.

    Social networking has come a long way since the beginning of retail Forex trading, and as such, the delivery of educational material has also changed. These days – the more cost effective approach is to learn from other people's experiences, and of course that is possible via the internet and social networking.

    Let's take a look at how the big 3 social networking sites (facebook, twitter, and linkedin) have changed the way the Forex market works, and the successfulness of traders every day in this market.

    Facebook and Forex Markets

    Recently, Facebook signed up its 500 millionth user, which is an amazing feat for a single internet website. With so many people, from so many demographics – there are sure to be those who take an active interest in Forex markets.

    Whilst exact figures don't exist, it is estimated that the users of Facebook generate approximately 2.5 billion new pieces of content each day. This can be in the form of photos, updates, or of course – informative posts on the actions of the Forex market.

    It is arguable that because Facebook profiles reflect their users exactly (i.e. they are maintained by individuals and they immediately reflect that individual to other people), the advice on this site is more relevant. We put this to the test in a mini experiment, and found that indeed the Forex advice on Facebook was much more reliable than any other social networking site.

    Some of the examples of Forex based content on Facebook include:

    Updates on which currency pair people are buying.
    Trading ideas based on different trading strategies.
    News pieces and links to news relating to Forex.
    If you are one of the 500 million Facebook users, you should be able to use this content to your advantage.

    Twitter and Forex Markets

    If there was one statement to be made about Twitter and its relationship to Forex markets, it would be that it is an unreliable one. Because of the sheer quantity of posts coming through on Twitter each day, it would be absolutely impossible to keep up with all of the updates on a particular currency pair.

    For example – there are between 20,000 and 100,000 updates each day concerning the EUR/USD pair – all of which have a different interpretation. Hence –in this respect, using Twitter for advice on FX trades is probably not the best idea.

    Twitter can come in handy in some respects though, and it does have its use in FX. Because of the fast paced nature of the Twitter service – breaking Forex news is delivered in record time for those who are ready to receive it. A simple Twitter search for your specific currency pair will no doubt yield the latest news – and could prove to be very useful.

    LinkedIn and Forex Markets

    LinkedIn is a more formal, professional social networking site which promotes networking solely for business and commercial purposes. Instead of allowing you to invite anyone, only select work friends can be added.

    In this respect, LinkedIn is immediately a step above Facebook when it comes to the environment and professional setting. If you are serious about FX trading, LinkedIn can be an excellent resource to find like-minded people to swap idea with.

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