Nowadays, choosing profitable stocks for your portfolio involves half research and half speculation. When it comes to researching the potential and popularity of a business, social media and internet trend trackers are some of the best tools a trader can use. With these resources it’s possible to discover up and coming companies that are gaining attention in the public eye, and with an early heads up on the stock’s potential you’ll be able to get in before the price rises. The earlier you discover ideal investment opportunities, especially in Forex trading, the more of a return you stand to gain in the near future. With that said, here are four ways you can use internet trends and social media to diversify your stock portfolio:
1. Starting Your Own Blog
Studies have shown that researching and then writing about a topic helps you retain and apply information more effectively than if you were to only read about the topic instead. By starting your own trend tracking blog you’ll not only be creating a place for you to deposit your personal notes and stocks of interest, you’ll also be inviting useful input from commenters and readers. The networking and educational experience that comes from running a blog will undoubtedly be beneficial to your decision-making skills as a trader. If you’re intimidated by the idea of building a blog, consider using one of the many website building platforms.
2. Pay Attention to Google Trends
By far the most popular and perhaps the most accurate trend tracker online is Google Trends. There are a number of blogs that use Google Trends analytics to provide stock investing tips. You can learn valuable ways to use Trends and other analytical tools to gauge the potential of a stock based on actual public interest and search volume.
3. Join Investment Groups on Social Sites
Joining investment groups on Facebook and following other investors on Twitter is another great way to broaden your horizons and discover new investment opportunities. Networking with investors will help you see things from different perspectives and discover trending stocks from other successful traders. Having like-minded people in your network can also help you increase the popularity of your blog, if you decide to heed tip #1 above.
4. Subscribe to RSS Feeds and Newsletters
Aside from starting your own blog, consider subscribing to the RSS feeds of other blogs and sites that you find interesting and informative. This is the best way to stay on top of the latest developments on your favourite investing-oriented sites without having to manually visit them periodically. Likewise, subscribing to the top investment newsletters can fill your inbox with edifying tips on a daily or weekly basis.
More Research, Less Speculation
With all of the above tips in mind, you should have no problem discovering a steady stream of stocks that have high potential. The more you know about a company’s social standing and progress, the more certain you’ll be about the stock’s ability to perform well in the future. As a general rule of thumb, you should always try to base your portfolio additions on facts and statistics rather than speculation