Michael Covel speaks with Howard Lindzon. Lindzon is a Canadian entrepreneur, author, financial analyst, technical analyst and angel investor. Lindzon manages a hedge fund, serves as managing partner of the holding company Social Leverage, limited partner at Knight’s Bridge Capital Partners, and is the co-founder of StockTwits. He’s also known for the satirical podcast Wallstrip. Lindzon and Covel discuss the commonalities between the angel investing world and trend following; over-diversification; diversification in private investments vs. stocks; how Lindzon got the entrepreneurial “bug”; Lindzon’s early career as a stockbroker; the beginnings of Wallstrip; Lindzon’s comedy influence; how Wallstrip led to the next four years of Lindzon’s investments; how Lindzon’s mistakes helped him grow as an investor; Lindzon’s experience with fraud committed by a business partner; keeping your business drama-free; the issue of distraction; Lindzon on the birth of StockTwits; the investment that changed Lindzon’s financial life in 2005; the future of StockTwits as Lindzon sees it; social leverage; the art of curation and verticalization; and thinking of the financial web as a social bank account. Howard Lindzon can be found on www.howardlindzon.com. Learn more on the question of what is StockTwits?
Howard Lindzon has said some very nice things about my books. Now that the disclaimer is out of the way: what in the world is the purpose of StockTwits?
For example, from their ‘about us’ page:
“Log into the site with your Twitter details or download the StockTwits Desktop and you will be joining a community where market participants share their very best ideas in a continuous real time and open conversation.”
“The beauty is the simplicity. Messages are short and allow a person to read several interesting bits of stock information from various sources at a glance. The lightweight approach highlights the power of delivering vertical value to a horizontal community, where both constituencies share a common passion: the desire to consume and share real-time information.”
“In essence, StockTwits® helps people interested in markets socialize ideas. Whether you are a short term trader, swing trader or investor, whether you prefer stocks, Forex, options or futures, whether you want to eavesdrop or participate, you will find a wealth of information streaming at your fingertips.”
Sure, everyone has a view, but not everyone has a view that you should pay attention to. In fact, if trading as a trend follower ALL of these views are worthless.
Let me blunt: I know who the best traders on the planet are and NONE of them do any of this. Agree or flame me because I am 100% dead on telling the truth. This is financial news and information taken to its useless extreme by the Free Stocktwits.
Note: I am an equal opportunity ripper of news whatever. CNBC doesn’t escape my sword.