Book Review: The StockTwits Edge

This is an unusual book.  Like most books that involve the internet, the pace of change is so rapid that it will probably not be valuable two years from now.  But in the short run there can be benefit.

The book is 46 essays from people who are engaged to some degree in using StockTwits, a popular internet site where traders and investors exchange thoughts about investments.  The internet encourages fast exchanges of data — after all, it is called StockTwits because of Twitter, not because they are fools (Twits).  There’s another investing site for Fools, Motley as it is, and it has its own charm.

But speed in gathering information on investing is more suited to trading than investing, and so it should be no surprise that the book is 90% geared to trading, and 10% to fundamental investing.

Thus the book has the most value for those who want to learn to trade better — there are 42 traders giving their opinions on how to trade.  But the average chapter is only 8 pages long, so all you get of any trader is a taste of what they do.

My advice would be to read the book, scan for the traders/investors that fit you personality well, and talk with them at their websites to get a fuller picture of what they do.  (My favorites were Eddy Elfenbein and Todd Sullivan.)


Personally, I would have done a book with fewer participants and longer chapters.  I also would have included more about how StockTwits itself improves investing.  Finally, I would have had that great internet finance curator, Tadas Viskanta write the last chapter.  It would have really added to the book.

Who would benefit from this book:

Traders looking for a taste of the strategies of others would benefit from this book.  Fundamental investors will find this to be thin gruel.

If you want to, you can buy it here: The StockTwits Edge: 40 Actionable Trade Set-Ups from Real Market Pros (Wiley Trading).

Full disclosure: The publisher asked me if I wanted it.

If you enter Amazon through my site, and you buy anything, I get a small commission.  This is my main source of blog revenue.  I prefer this to a “tip jar” because I want you to get something you want, rather than merely giving me a tip.  Book reviews take time, particularly with the reading, which most book reviewers don’t do in full, and I typically do. (When I don’t, I mention that I scanned the book.  Also, I never use the data that the PR flacks send out.)

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