Carl Icahn, The Stock Markets and The Social Web…Never Fast Enough…and The Winners and Losers

First a reminder…The Markets are Rigged!

It is impossible to fix such a complex structure. You can’t invest properly with silly expectations and faulty assumptions. The further you step away from the machines and the noise, the more you lower your costs, the quicker you cut losses and the longer you ride winners, the more success you will have in the markets. No one tweet will make you happy or rich. Get over it.

It is impossible to stop the social web as it relates to markets. The markets are mood rings. The smartphone explosion has put a personal mood ring, opinion delivery system and talk your book extender in everyone’s hand. That part is pretty damn fair. There are sufficient rules in place to prosecute the thieves and criminals. No new rules need be created.

I admit I have been way way early (we are all underfunded :) ) for the pace at which Wall Street and banks move. The mistakes I will delve deep into in a later post, but none have been bad enough to kill us. The speed at which I have forced many ideas/features have been the biggest mistake. Wall Street can’t be forced to do anything. BUT – every day the momentum of the social and now mobile web grows. Today it is Carl Icahn using Twitter to post about his new position in $AAPL and his lovely call with Tim Cook. Of course I would love for Carl to be using Stocktwits, but it is almost impossible to compete with the media drip of Twitter. Eventually Carl will understand the $ and the added benefits of our service and community, but this is a huge step in the right direction for financial idea dissemination and the future of financial research on the web.

Carl is part of the new ‘Human Ticker’. It’s not clean…it’s f%#%king messy. But it’s yours to create for yourself. You can piggy back off me or you can build it from scratch yourself. There is no perfect tape, just yours to build. If $AAPL drops 50 points tomorrow, Carl is risking his reputation. Three bad calls in a row and Carl will be ridiculed. He is talking all the risk with his brand and reputation. It is not going to be as easy as you think for Carl to manipulate the markets and buyer beware to the chasers over time.

The biggest loser in this is CNBC. They can’t win this war if they continue to fight it with the same strategies and tactics. The tape has moved to the streams. Carl has tasted the joy and profit of the stream. The ultimate rush of power. He will now only use CNBC to promote his next idea on Twitter (soon Stocktwits :) ) or explain his action post dissemination on the web. CNBC can afford more eyeballs to watch and post to the stream than the rest of us, but spend most of their time promoting what is happening on television where they are limited to one feature/pimp at a time. It is not nearly efficient enough for the investor/trader of the future and today.

The biggest winners are you and me. We can follow Carl very easily, we can follow other incredible mentors, we can dip in and out of the streams when we want and we can ignore as much as we like.

I know that at Stocktwits we are here to hold your hands and make this transition as smooth as possible for as many of you as possible. We have been doing this for 5 years and get a thrill out of being a part of this revolution in markets.

Take advantage of it.

6 comments

  1. Paul Rubillo says:

    You are spot on Howard when it comes to the transformation taking place. The biz media will however remain “easy pickings” when it comes to getting mainstream viewers to follow the usual titans in and out of their ideas. Change can’t come fast enough. Keep plugging Howard, we all know current and future stock investors will continue embracing the platform your team is building.

  2. StockStreams says:

    If you have a moment – check out @StockStreamsPro. Quite by chance we ‘launched’ this today. Working on tons of other stuff behind the limited public site. I am a SERIOUS believer in what you started. Not trying to compete per se. In a ‘ideal’ world …… Anytime you have time ……

  3. Sentdex Indicator says:

    It’s all about access.

    Not too long ago, you really needed to be an insider to know much at all about a company, and the trading public did most of their trading (truly gambling) in bucket shops with basically no information at all on companies.

    Then came media, and some information came out then (which probably was more accurate than it is now, heh).. but it was not in the bulk that is today. CNBC truly does only have 1 ‘Pimp’ (sometimes I think their role is the reverse at times…) at a time, and can only get such a tiny portion of the full amount of information by listening to CNBC. Their segments are far too short to cover even the daily news on 1 large company.

    Now though, we can be directly plugged into everything, from big named to little-known investors, getting real-time data for free. Social media is still very new, and is still massively expanding. The main output from it is information, and it’s only going to keep growing…putting the information directly into the hands of the investor…without middle-man-media spinning.

    I especially hope more big companies continue streaming their information on StockTwits, that’s awesome!

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