More and more, Twitter is gaining momentum. Even investors, from the beginners to the seasoned traders, are on Twitter these days. You will find that options traders, day traders, swing traders, professional money managers, and even TV pundits are now sharing their thoughts and expertise on Twitter. (see: Q&A With 5 Traders on Twitter)

So What Is Twitter?

In case you’ve been missing out, Twitter is a social network that enables its users to read and respond to each other’s updates, also known as tweets, via the Twitter Web site.

So how is this different from Linkedin or Facebook? The one thing that makes Twitter stand out is the openness of the network. Users are free to surf Twitter and find other individuals who share the same interests.

If you find an individual or organization of interest, you are free to opt-in to their updates/tweets by following them. Users are limited to 140 characters per update/tweet, keeping each update nice and short and straight to the point.

How Investors Use Twitter

In general, investors use Twitter as …

1. An educational resource

2. A networking tool with other traders

3. An information source for the latest news and updates.

Finding Investors on Twitter

One Investment community that was built around Twitter is StockTwits.com. StockTwits aggregates all stock related Twitter updates onto their site as a live feed. Whenever a trader uses the “$” symbol in front of a stock ticker or includes a “$$” at the beginning or end of a general stock or market related tweet, their tweet gets aggregated into StockTwits.com. You can even post your tweets or reply to other tweets directly from Stocktwits. You just have to login using your Twitter account information.

Once on the site, you will see that the user interface is filled with comments and stats showing the top ticker buzz, the top StockTwit talkers, and the top gainers and losers.

You can also add stocks and save them to your own portfolio and limit the conversation around it to your most trusted sources.

Another resource is the Twitter directory called Wefollow. This site aggregate and categorizes Twitter users by their interests. Use the search bar in the top right to find people/organizations you find interesting and start following them.

For example, search “options”, and you will see OptionsZone on the list. Just click on our icon, and you will be taken to the OptionsZone Twitter profile page. Once there, you can click on the “follow” button, and you will start receiving our updates on Twitter. (Must be logged in to Twitter: 3 Easy Steps to Get Started on Twitter)

You may also use the integrated search function in your Twitter account to search for individuals/organizations. The search will pull all results based on name or keywords located in the bio field from all of Twitter. You can see a list of who you are following, who is following you, and your updates by clicking on the respective links in the top right of your Twitter page.

Here are some suggested Twitters users: Q&A With 5 Traders on Twitter

Getting Started

Whether you’re a novice options trader wondering what the heck is an “iron condor” or a seasoned day trader looking for input on entry and exit points in a stock, Twitter presents itself as an invaluable resource.

The best part about Twitter is that it’s free and easy to use. We’ve made things easy for you by outlining a 3 Step process to getting started on Twitter.