This comes in response to Wednesday’s grouchy mocking of the Todd Stottlemyre-funded Twitter/day-trading venture, StockTwits.com:
As a fan of both Twitter and StockTwits (though I know one of the founders…), I have to step up to defend StockTwits. It’s a bit unfair to condemn it… Twitter, when used properly, becomes an amazingly useful information and communications tool.
Like many people, I thought it was silly until I really started using and realized how incredibly valuable it is. It has kept me in better touch with people, as well as providing info that is incredibly helpful to me in a variety of ways.
It’s a stream of useful info, and in many ways a very personalized people-powered Bloomberg terminal. As such it makes sense for traders (I don’t trade, yet I still find StockTwits interesting) to use it as a way to share information.
It’s really about getting around the established legacy sources of information and getting people to actively share information with each other.
It’s a good thing, not something to mock.