Trade From Twitter

Kind of a cool idea that TD Ameritrade rolled out today. You will be able to initiate trades from Twitter.  Hey, maybe soon you will be able to do it with Alexa and Snapchat. TD already has that sort of functionality with Facebook Messenger.  A lot of traders have Twitter open to keep track of breaking news when they trade.  There are numerous companies that translate tweets into machine-readable language for computers to digest and act on.  There are other apps that synthesize social feeds to create trading signals and more alpha for hedge funds.  I think that in the startup world they often think that big incumbents will roll over and play dead.  After all, they are just corporate whales waiting to be harpooned.

Sometimes bureaucratic corporate structures do allow startups to harpoon whales.  But, most of the time the whales feel the pinprick and buy the startups before any damage can be done.  Or, they enter the market and compete.  This is what TD is doing. I see this as a response to platforms like RobinHood.   Certainly, some big whales in finance are going to follow the Cisco strategy of continually buying innovation.

I won’t discuss the wisdom of trading from an app like Twitter. It’s highly likely that a lot of the trading will be driven by emotion which almost never works out.