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Tuesday, January 11, 2011

Reducing noise & finding value on StockTwits

Wanted to track down some of the better posts on filtering one's information feeds and following users on Twitter and StockTwits.

One of the common objections I hear from potential users on trying Twitter or StockTwits is that they anticipate a flood of extraneous "noise" from these new info channels. Therefore, they wish to remove the possibility of being inundated with chatter and opinions by not taking up these microblogging platforms.

This is a very fair objection. After all, if you have a well thought out investing and/or trading strategy, and you're carefully screening the info you consume on a daily basis, why expose yourself to additional noise and unwanted opinions?

But is there a chance you might be missing out on an opportunity to connect with, and learn from, like-minded (or differently focused) traders and investors? What if you could filter your Twitter or StockTwits streams to show you an organized set of updates from the sources of your choosing? Might some form of value be extracted here?

With serendipitous timing, StockSage1 offers up this excellent new post on, "Reducing Noise Intake - From Mandelbrot to StockTwits".

An excerpt from that piece:

"Athletes often talk about the concept of the ‘game slowing down’ when they are really in the zone...

...Traders can achieve the same ability to ‘slow the markets down’ by preparing, studying and focusing on the most relevant new information while blocking out all the useless noise. This last point, blocking out noise, is paramount to achieving success as a trader. In the 2011 world of high speed information flow and social media, the challenge of blocking out noise becomes increasingly difficult by the day."

Read on to find out where StockTwits enters into the equation, and how you might best filter your message inputs to receive value from the stream (or reduce information overload in general).
You may find that you've opened up a whole new channel of communication and idea generation.

Of course, this applies not only to traders and investors, but to anyone using Twitter (and Twitter clients like Tweetdeck, or features like Twitter lists) to communicate and share ideas with others who share similar interests or business goals.

Have you found value on Twitter or StockTwits? Tell us about your experience.