Social Networking Site for Investors

Benefits of Using a Social Networking Site for Investors

Advantages for Investors

People who want to invest may have questions about which course of action is the right one for them. They may not want to get investment advice from a stockbroker, feeling that the main function of a stockbroker is to be a salesperson, not an adviser. When they discuss investing with fellow investors, they feel that they are participating in a community that is interested in the same thing they are (to invest wisely and see a good return on those investments).

The people participating on the social networking sites won't be shy about sharing what works for them and what investments went south. People are more likely to take investment advice from someone they "know," even if they only have an online relationship. Investors are always hungry for information about emerging trends and what other people see as the Next Big Thing.

Savvy investors want to get into the market as certain stocks are set to rise, as opposed to chasing trends after the fact. Information affecting markets is available very quickly online, and investors are less likely to wait to find out about them through a news service or by receiving an e-mail message. Participating in a social networking site for investors lets them feel that they have a finger on the pulse of what is happening in the business world and that they can use this information to make wise investment choices.

Advantages for Brokers

Brokers like it when investors take advantage of social networking sites because investors who are participating in them tend to make more trades, and brokers get paid a commission every time an investor decides to do so. When you consider that Zecco Trading is seeing 1,500 new members signing up each week, these numbers add up quickly.

Security and Social Networking Sites for Investors

Some social networking sites for investors allow registered members to operate a blog as a benefit to membership. Since members are required to reveal their identity to the social networking site's owners when they register, it is difficult for participants to attempt to scam fellow investors.

In addition, blog postings and comments are reviewed very carefully by the social networking site's staff members, who will remove comments or postings that are misleading or illegal in content.

If you are interested in becoming a member at one of these sites, make sure that you take the time to read familiarize yourself with the terms and conditions you are expected to follow when you are posting blog content or responding to someone else's postings.

Examples of Social Networking Sites for Investors

Here are a few social networking sites for investors:

• TradeKing.com allows members to make trades, check out what fellow investors are buying, or share their thoughts through a blog. You also have the option of participating in an online discussion forum on the site.

• If you want to put your stock predictions to the test and earn an online reputation based on your skill in picking high-performers, sign up at FeelingBullish.com. You also have the option of participating in the discussion boards, or joining or setting up a club to discuss investment matters.

• If you aren't shy about sharing the contents of your portfolio with other Internet users, you may want to consider signing up with Stockalicious.com. See how well your portfolio is performing compared to the market , check out the latest transactions conducted by other site members, or post a message on the blog page.

These are just a few examples of social networking sites for investors. When you decide to become a member of one of these sites, you benefit from the knowledge of other investors.