The next big web thing and how it relates to trading…

Do you know what the next ‘big’ thing will be on the web? It’s busy happening now.

Formerly, if you weren’t a programmer and you wanted to combine information to show something new then you needed to spend a stack of money developing something…

However this gap between coding knowledge and creativity is closing. As long as you have the idea you will soon be able to create it. Someone else will provide the glue – all you will need to do is have the idea to stick it together. Go look at www.ifttt.com for a great example of this.

Let’s take a commonly known portal like Stocktwits who have just released an API. What this means is that you can trigger events off of things happening – what about trades? Let’s say you want to see the consensus view on EURUSD and you’re aware that often the consensus is wrong so you are interested in taking the opposite position.

I’ve spent some time reading the EURUSD stream on Stocktwits and have been very surprised to see what people are doing i.e. maybe I’m not so terrible after all – can I somehow use this insight into the behavior of others? Why not? I’m sure you smart people out there can extrapolate from here.

During a webinar a couple of months ago the presenter called for an app that only showed what ‘crappy’ traders are thinking/doing. They were/are using this as another information source since if there’s a lot of noise about a certain play it may mean they have less inclination to actually trade it. The herd is usually wrong so avoid the herd, right? Smart or what?

So eventually I stumbled across a mobile building app thing called Infinite Monkeys.

What I’ve done is taken the feeds of a number of twitter people who have consistently shown their ability to call false breaks (i.e they post positions that actually become turning points) and collected them together in one single app which I can watch on my phone.

Do you know of any particular names/traders on twitter who deserve a place on this platform? Please comment so I can add them!

All contributors will be able to download the app for free or just subscribe or something. It just took the idea and some small amount of time. It wasn’t difficult. At all. Really – it took me 10 minutes, I’m not posting about this to sell/promote an app but I did it to re-enforce the following point. Go make your own even!

This type of ‘mash-up’ has been happening in the creative sphere since I was a kid – yes, I remember when sampling was new and the internet only came in green.

Now the same revolution is coming to data. Every business critical system we use at work is driven by a database – whether it’s on a server or on ‘the cloud’. The people who can use, run, interrogate and leverage the data at my place of work are the ones that run everything or are making steady career progress.

This might be Salesforce where you are or some other tool whether it’s for CRM, production or stock management. You may be a hell of a nice guy but the guy who can look at the data and answer the question intelligently without having to first guess is soon going to be your boss…

So the data is coming. Your intelligent analysis, your ability to use/filter and slice this information will become increasingly central to your success.

  • We are not knowledge workers anymore – if you want knowledge you can Google it
    • When programmers get stuck that’s the first place they look!
  • Platforms are evolving to a point where all the data will soon be accessible

All those pop-psych books like ‘Freakanomics’ (so many of them) or the genius of Steve Jobs (people will pay a premium for an elegant PC that just works) come down to insight and finding the truth that others can’t see.

Unless you’re a niche, niche, niche specialist you’re now (pretty much) a commodity

Knowledge was power

Insight is now power

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6 thoughts on “The next big web thing and how it relates to trading…

  1. peter

    Hi robert, I would like to be harsh but fair as I enjoy your blog. Basing your aim is to suceed at training I think you must stop this long term search for trainers, set ups, power of the mind, apps, herd monitoring, demos,liveor accounts , detailwd blogs etc….this is utter madness.just stop choose two setups, one mentor, one live acc and a few things to improve your mind and trade one thing only. Do this for one year. Do not keep changing things its crazy. Do this and suceed or contnue and fail. This is the only truth. Do you want to suceed or do you enjoy you blog more. Sorry this is fact. Good luck

    Reply
    1. robertsweetman Post author

      Hi Peter – thanks for the comment

      Harsh is fine and it’s a fair point. I’m very happy to reply that I did honestly reach this conclusion (finally) myself last week.

      EURUSD only, London a.m. only, one setup (at the moment) only 😀

      Reply
  2. Simon FTSEday

    Have to agree with Peter. An app to monitor the wrong traders? I’m confused. Why put any focus and energy into that? Planning > psychology > recording > analysis > planning > psychology > recording > analysis. The fundamentals will never change and nor should our focus.

    Reply
    1. robertsweetman Post author

      Hi Simon – yes I agree however this wasn’t (really) a post about trading. It took me >10 minutes to build the ‘app’ I reference and as I said in the post this was to prove a point more than anything else. It’s a bit of fun more than anything.

      I was making a general observation about a shift in what constitutes value that will affect all of us. What I’m trying to get across here is that what would formerly be considered ‘knowledge’ work (google Peter Drucker) is being severely reduced in value since the information itself or the means to execute a particular idea are now becoming globally available through the web. If you need to know some fact then you can type it into google and get handed the answer >90% of the time

      People who have either extreme levels of competence in a skill or the insight to conceive new approaches to problems will prosper. The remainder will struggle as the tools evolve to lower the entry criteria and the skills required to do the same work.

      I felt it was important to make people aware of this since it might affect them down the line.

      Reply
      1. Phil

        I’m seeing a massive amount of jobs for professional programmers at the moment (i’m a programmer casually looking for work). I’m not sure “knowledge work” is going anywhere soon. Programming/developing successful web applications is not a simple as stitching together a few API’s with an online application and never will be.

        Liked https://ifttt.com, seems pretty cool for quickly knocking up some simple personal stuff.

      2. robertsweetman Post author

        Hi Phil – I’m not forecasting when this will happen and yes being able to actually code will be immensely valuable for some time to come 😉

        Imagine the stick I got when I casually mentioned this idea to our software team!

        I had to buy them off with beer and still only just managed to get out alive…

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