• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Trading Heroes

Forex Trading Education

  • About
  • Articles
  • Resources
  • Shop
  • Login

Can Twitter be Used as a Forex Trading Indicator?

Home / Trader Life / Can Twitter be Used as a Forex Trading Indicator?

Last updated: August 11, 2022
By Hugh Kimura

I was talking to one of my friends who trades stocks and he mentioned that he watches the stocks that he is trading on Twitter to see what people are saying about those stocks.  Then he uses that as a gauge for market sentiment and is one of the factors that he takes into account when putting on a new position.

It is not his only indicator, but he seems to do pretty well by it, especially on shorter term time frames.

That made sense to me because any jackass (including myself) can create a Twitter account and start Tweeting their trades, but the odds of those predictions being right are very small because most people are not profitable traders.  In addition, there are going to be a few pro traders there that will be right more often than most.

When the two groups are very polarized, that may be a good time to take a position.  Similar to how people trade the COT report.

But could this be applied to Forex?

Let's take a look and the pros and cons…

Potential Benefits

Tracking one or two pairs like the $EURUSD on Twitter would give you a lot of insight into what people are thinking about the market and what the ‘dumb money' is trading.  In addition, if you know who the pros are, you can also get a feel for what the ‘smart money' is doing.

RELATED: Learn Forex Hedging in the FREE Guide Here

Also, watching Twitter is free and you don't have to pay for an expensive data feed.  I like free.

Potential Downfalls

One potential negative to watching the Twitter stream is that if you are easily influenced by outside opinions, Twitter could just confuse you.  There also may be the temptation to use Twitter as a primary indicator.  I doubt that it could be a primary indicator, but I won't know until I give it a try.

Also, the currency markets are huge compared to a single stock, so the ‘dumb money' may have less of an impact on the overall market.  My gut tells me that a bad trader can sniff out a bad trade in any market, but we will have to see.

My Experiment

So in addition to trading the Wallaby, I'm going to start watching the $EURUSD in Twitter and StockTwits to see if there seems to be any correlation between what people are trading and being able to predict price moves.

Want to try this for yourself?  Here is how to get started:

This is just an experiment, so DO NOT go trading real money with this idea!  But if you think this might work, I invite you to follow along and see what you think.

To follow some legit traders and analysts on Twitter, check out this list.

What do you think?  Leave a comment below…

Related Articles

  • 27 of the Best Forex Twitter Accounts to Follow in 2015
  • How To Connect With Trading Mentors And Friends Online Via Twitter, Facebook, Blogs And More
  • How to Use The RSI Indicator In Forex Trading
  • Forex Backtesting Software – Forex Tester 2 Review
  • 17 Best Forex Analysis Resources
  • Forex Tester 5 Review

Category: Trader Life Tag: Product Reviews

About Hugh Kimura

Hi, I'm Hugh and I'm an independent trader. Before starting Trading Heroes in 2007, I used to work at the trading desk of a hedge fund, for one of the largest banks in the world and at an IBM Premier Business Partner.

Learn more about me here and read more of my articles here.

Primary Sidebar

Trading Guides

How to Backtest a Trading Strategy in Any Market

The Heroic Guide to Forex Hedging for Beginners

How to Figure Out Your Trader Personality Profile

The Forward Testing Guide for Beginners

How to Create a Precise Trading Plan (with PDF worksheet)

About Hugh Kimura

 About Hugh Kimura

Hi, I'm Hugh. I'm an independent Trader and I started Trading Heroes in 2007.

Before starting this site, I worked at the trading desk of a hedge fund, at one of the largest banks in the world, and at an IBM Premier Business Partner.

Learn more
FREE Forex Hedging Guide
Forex Hedging Guide
Learn how Forex Hedging really works.

Download Now

Footer

Company

  • Trading Courses and Education
  • Trading Blog
  • About
  • Contact
  • Beware of Imposters

Articles

  • Backtesting
  • Etheric Finance Podcast
  • Forward Testing
  • Funded Trader Programs
  • Podcast
  • Trader Life
  • Trading Psychology
  • Trading Software Tutorials
  • Trading Strategies

Community

  • YouTube
  • X
  • Instagram
  • Facebook

Trading involves risk and can result in the loss of your investment. Invest at your own risk. Past performance does not guarantee future results. All information on this site is for informational purposes only and is not trading, investment, tax or health advice. The reader bears responsibility for his/her own investment research and decisions. Seek the advice of a qualified finance professional before making any investment and do your own research to understand all risks before investing or trading. TrueLiving Media LLC and Hugh Kimura accept no liability whatsoever for any direct or consequential loss arising from any use of this information. This site is reader supported. When you buy through links on our site, we may earn an affiliate commission. As an Amazon Associate, we earn from qualifying purchases. You are more powerful than you know, keep expanding.

 

Copyright © 2007–2025 TrueLiving Media LLC | Terms | Privacy | Risk