Stock market investing tips have evolved over time. Today there are over 6,000 companies that are publicly traded, and it can be quite tricky to pick a winner at times. According to FoxBusiness.com on November 7, one of the top ways that hedge funds can find lucrative stock tips is through Twitter.
The article went into detail about how because a Canadian newspaper sent out tweet that BlackBerry’s buyout deal had evaporated, an information discovery service company received a warning, and was able to alert their clients a few minutes before the story broke across major news outlets. The hedge funds that hired them were able to short their BlackBerry stock before it dropped like a stone.
Receiving market investment tips from a social media website has been gaining momentum for a few years. Early in 2011, TheGuardian.com did a story on how rapper 50 Cent used Twitter to promote a penny stock that he had a 12% stake in. Because his followers were able to purchase stock when he sent out the tweets, he was able to rake in over $10 million.
Despite all of these new stock market investing tips, there are a few things that have remained constant. The value of any particular stock depends on its earnings. A $2 stock can be particularly expensive if its earnings potential is not high, while a $100 stock could be very cheap if the company’s earning potential is high.
Even with social media having a profound effect on things, those looking to invest for the first time would be wise to heed the stock market investing tips of a few pros. When it comes to ones money, it’s probably a good ideal to play it safe at first.
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