LONDON, June 29, 2011 /PRNewswire/ --
As a spread betting trader, you need as much up-to-the-minute information on the markets as you can get hold of. The micro-blogging service Twitter is uniquely suited to providing the instant news needed to stay abreast of the markets - a fact of which traders are starting to take advantage.
With spread betting and CFD trading providers such as City Index (http://www.cityindex.co.uk/) increasingly prevalent on the social network, Twitter may fast be becoming the most valuable trading resource at your disposal.
A new study by PhD student Timm Sprenger has found that traders who followed stock market tweets on Twitter over the last six months could have achieved an average return of 15%. In carrying out his investigation Mr Sprenger, of the Technical University of Munich, analysed a sample of 250,000 tweets. He discovered "a striking co-ordination" between the Twitter consensus about stocks and the external information from financial trading analysts.
"I don't think it is the Holy Grail to make millions but it is a very credible and legitimate source," states Timm Sprenger, who also found that more valuable information tended to be retweeted, therefore connecting with a larger audience.
Anyone new to Twitter would do well to follow credible sources such as @City_Wise from City Index, which provides the latest spread betting financial news. In addition, many of City Index's analysts such as Joshua Raymond (@Josh_Cityindex) have their own Twitter feeds, providing targeted analysis for their individual specialisms.
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Spread betting and CFD trading are leveraged products which can result in losses greater than your initial deposit. Ensure you fully understand the risks.
About City Index:
Today more and more individual traders are discovering the benefits of derivatives, and many of them are discovering them through a City Index trading platform.
As a group, we transact in excess of 1.5 million trades every month for individuals in over 50 countries worldwide. We provide access to a wide range of instruments including margined foreign exchange, CFDs and, in the UK, financial spread betting.
We constantly look to improve the performance of our platforms and expand our range of services. The result is that our customers benefit from innovative trading tools with transparent pricing, competitive spreads, and a high standard of customer support. Visit http://www.cityindex.co.uk/ for more financial trading information.
SOURCE City Index