social media Archives - Faithful with a Few

How Ethical Trading May Be Encouraged

By // by guest

Ever since the financial crash in 2008, this hasn’t necessarily been the case and now, in 2014, scapegoating for problems seems to be worse than it ever has been before. Banks and large trading institutions may have caused some of the problems that ultimately led to the crash, but small scale investors were also causing issues.

Here we will look at ethical trading and how the concept of social trading allows us to trade in a manner that allows us to keep a clear conscience.

What Do We Mean By Ethical Trading?

When the financial crash happened, many banks and institutions were punished for unethical trading. This means that they invested money in areas where they shouldn’t have, gambling money that wasn’t theirs to lose.

Ethical trading on such a large scale would mean that a bank will only spend money that is theirs, or will only use your money if you’ve given them explicit permission to do so (as you can with some types of account). Even then, when a bank invests this money, they should look to invest in products and projects that are perceived to be ethical.

As well as this, as was the issue in 2008, banks must also be seen to be staying within the banking code of conduct, observing rates rather than trying to manipulate them.

How Can Ethical Trading Be Practiced On A Small Scale?

Although many banks have had issues with the law and unethical trading in the past, single, small-scale investors have fared much better and, the majority of the time, they are trading well within the code of conduct.

If you trade at home on a trading platform, it is highly likely that you’re already what is considered to be an ethical trader; staying within the rules and only trying to make an honest living.

Issues with individual traders generally only arise when people are given access to insider information; something that is both illegal and immoral.

Passing On The Word: The Benefits Of Social Trading

Social trading acts as an online forum for investors, where people can meet, chat and discuss trades. Because of the fact that brand new investors can speak to those with far more experience, this is the perfect place to spread the message of ethical trading to those who are inexperienced and likely to succumb to pressure.

[How much can you rely on social media in your investing?]

Social trading looks as though it could very well be the future of forex trading, and it’s available through almost any ECN broker. With this in mind, now is the perfect time to learn from the lessons of 2008. So, consider the way you trade, ensure it is ethical and spread the word. Together, we can make the world a better, fairer place.

How Social Media Can Affect Your Investing

By // by Khaleef Crumbley

If you want to know what your friends are up to, look at funny pictures of cats, or scope out deals at your favorite stores, social media is a great tool. More and more people are turning to social media for other things as well, such as help with making investment decisions. A look at the specifics of how people use social media to shape their investment plans can help you decide if such an approach is right for you.

Younger People Lead the Way

Image via Flickr by thetaxhaven

The results of one survey published at marketwire.com revealed that the group most likely to use social media to make investment decisions is people under 40. The same survey found that this age group is three times more likely to believe that information received through social media is credible than other age groups. Overall, 40% of investors use social media as part of their financial game plan, and that number is likely to continue growing.

It isn’t just the young and the folks with limited assets who look to social media. Individuals with a high net worth are also seizing hold of the trend. As stated at hewinsfinancial.com, another survey found that “high net worth adults that are online are using social media for investing purposes at a rate that is higher than the general population!”

It becomes clear that investors want social media to impact their investment decisions. As financial advisory firms and other companies take note of this, they are more likely to use social media as a way to connect with clients.

How Businesses Use Social Media

Image via Flickr by Jason Howie

A report released earlier this year by the SEC states, “companies can use social media outlets like Facebook and Twitter to announce key information…so long has investors have been alerted about which social media will be used to disseminate such information.” This go-ahead opens the door for increased company-investor communication.

Financial advisors are taking full advantage of the opportunity presented by social media. A survey conducted by Accenture found that out of 400 financial advisors, 73% said that social media has led to an increase in client transactions and 77% said that it helps with client retention. Indeed, social media helps financial advisors communicate efficiently and easily with clients, and it makes the task of keeping up with industry news easier.

How Investors May Misuse Social Media

With the above being said, it’s obvious that the world of social media has a lot of sound information to offer to investors. When financially savvy individuals stick to official, reliable sources, they stand to benefit from their social media experience.

However, a note of caution is in order. If you follow the link to the Hewins Financial website included earlier in this article, the page it takes you to has an introduction all about how emotions can negatively impact your investments. One of your friends boasts on social media about an investment that paid off, and you decide to invest in the same stocks, just when those stocks are about to fall. Eventually you get locked into an unprofitable cycle of buying at high prices and selling at low prices.

In another scenario, the buzz on social media about a certain investment might make you doubt official sources of information. If all your friends on Facebook say one thing, but an official source says something to the contrary, which are you likely to believe?

Should Social Media Impact your Investment Plans?

When considering the pros & cons of annuities — resources for any type of investment, really — take the time for introspection. What are your specific long-term and short-term financial goals? Who do you trust to help you with those goals? Once you have a clear picture in mind, start searching for information.

For every source of information, ask yourself, “Is this advice coming from an expert, or did Great Aunt Helga just get over excited about her portfolio?” “Is this information up to date?” “What is this source’s motivation?” Tweets, blogs, and status updates from well-reputed experts and financial advisory firms are the best places to look.

If you’re new to the world of investing, don’t make any of your decisions based on what you see on social media. Educate yourself about the basics of investing, and don’t be afraid to meet face to face with a financial advisor. If you decide to trust that advisor, look for that person’s company’s social media sites.

As social media steps into more and more aspects of daily life, it becomes increasingly important to know the advantages and the potential pitfalls that can come from it. Keeping your emotions in check and your goals in front of you will help you make wise decisions.

The Importance Of Social Media For Small Business

By // by guest

The following is a guest post about the importance of social media for small business…

Social Media For Small Business

The most successful of entrepreneurs are those who not only scout emerging opportunities, but seize them before their competitors.While it is the case that social media and networking has been wildly popular for some time, it is only recently that small businesses are beginning to integrate such sites into their primary marketing strategies.

The world of social media seems now to have developed readily into a sphere from which visible business growth can begin to flourish. Increasingly, more and more small businesses are setting up Twitter and Facebook profiles and as a way to communicate with their customers.

As social media is becoming more and more vital to industry, companies are seeking to ensure that they are covered against the luring away of their most able employees. Speaking with insurers such as Hiscox – Business Insurance Specialist is a good way to see that your business is covered against any loss that social media could have on your business.

The Scale of Social Media Presence

A study by the University of Massachusetts at Dartmouth highlights that an astonishing 74% of businesses listed on the 2011 ‘Inc. 500’ now has a presence on Facebook, with almost as many also present on LinkedIn. The study^* went on to recognize and analyze a change in companies’ behavior in social media, noting a shift from blogging to the more interactive services mentioned above.

Marketing and business strategy is founded on the careful study of customers’ habits and this increase in the use of social media to promote businesses reflects the most recent and important example of this in today’s market. This shift shows a positive and new approach to research and is a prime example of how small businesses and entrepreneurs can capitalize on the broader practices of larger companies in their own industry.

When we take a look at the figures surrounding the use of social media, it is no surprise that businesses are moving swiftly onto these sites. HeBS Digital published information in 2012 which showed that nearly half of internet users participate personally in social media.

Those internet users are now estimated to spend 17% of their time on the web browsing social media pages. Crucially it also found that 44% of those using the social media site Twitter claim to have interacted with a brand on the site following some kind of online promotion or discount offer.

Responsible Use of Social Media For Small Business

The statistics which focus on use of social media are hard to ignore, but the implications of integration into social media are not necessarily as purely positive as it might seem. The coverage your business can receive from an online presence is considerable, but it is important for small businesses to bear in mind the responsibility with which this comes.

Your use of social media is likely to become the primary point of engagement with customers on the internet. Therefore it is essential that you operate your page in the same manner which you operate in all others aspects of running your business, for instance on the shop floor.

When small businesses make the move to social media, it is important that they do so with an amount of conviction and commitment. The reputation of a small business can be hugely affected by its presence online and it is essential that social media usage does not ignore this.

Customers nowadays are always looking for vibrant and buoyant services and a boring and unchanging Facebook page is likely to put them off.Likewise, if businesses have an account with Twitter, it is wise for them to post regularly.

Not only does this ensure that the company is interacting positively and regularly with its customer base, but it shows its audience that it is an active and positive business and really believes in the platform.

With such an array of free advertising and marketing opportunities, reaching customers is no longer about the size and wealth of a company. Rather it has become about the ability to entice customers and to outdo competitors on a level playing field.

The internet has made the market a more equal place, but in doing so it has intensified competition. In order to stay ahead, small businesses must adapt in line with the development of the web.

*[This study is sourced from http://www.umassd.edu/cmr/studiesandresearch/2012inc500socialmediaupdate]

Photo by Vichie81

Identity Theft And Facebook: How To Protect Yourself From Fraud

By // by Khaleef Crumbley

It’s no secret that many people share personal information on Facebook. However, many people don’t realize that they are sometimes giving enough information to make identify theft and Internet fraud extremely easy!

How Facebook Fuels Identity Theft And Internet Fraud

Imagine that you have a few accounts with some very sensitive and/or private data and so you not only assign a password, but you also choose a couple of “security questions” that very few people could answer about you. Then you go and post the answers on a website to which over half a billion people belong!!!

At first, this idea sounds crazy, but just think about the various information that you share on Facebook and other social networks…does it still sound crazy? Think about the information that many financial institutions use in order to keep your information free from Internet fraud and identity theft:

Address
Phone Number
Pet’s Name
Street Where You Grew Up
Birthday
City of Birth
Favorite Book/Author
Favorite Movie
Favorite Historical Figure

I’m sure that you can think of more things to add to this list as well. Now think about how many times you have shared this information on Facebook. I can go to most of my friends’ profiles and find out their phone number, pet’s name, birthday, hometown, favorite author/book/movie, etc.

Not only are many sharing this private data, but they also fail to understand the privacy features of Facebook and other websites. For instance, Facebook is always changing their default privacy and account settings, and when those changes happen, you have to remember to make the necessary adjustments each time!

Identity Theft Internet Fraud Caveman — So easy…a caveman can steal your Identity

So, not only can your “friends” see the answers to your security questions and passwords, but so can “friends of friends”, and sometimes even perfect strangers and search engine traffic!

Status Updates And Check In Points

Do you know what you are saying when you post your current location on Twitter, or Foursquare? I’M NOT HOME, PLEASE ROB ME!!! In fact, the site PleaseRobMe.com used to post this type of information. They would search on Twitter and Foursquare, and whenever someone would post their location, or tweet about where they are, it would get posted to the “Please Rob Me website”!

They have since received a lot of publicity and decided the shut the service down, since their message of warning has finally been taken seriously – many people actually saw them as a “one-stop-shop” for robbers.

Stop Posting Your Vacation Plans!

This is another one that has become very popular! People are constantly putting their vacation plans on Facebook and Twitter in advance! All you are really telling others is, “my house will be completely empty for the next 10 days, feel free to take whatever you want…we won’t even be in the country!”.

If you want people to share in that moment, just wait until you get back and then post pictures!

Quizzes And Games

Remember that information that we listed above? Well, if you don’t include that in your profile, there are other ways to get it out of you! Think about all of those quizzes that ask you a bunch of personal questions and then you can see how well your friends know you. Be careful about what information you share!

The same concept is true with all of the games and applications that want access to your personal information in order for you to play or use them. Definitely think twice about paying real money in order to interact with these games.

In fact, one quick piece of advice is that when you are shopping online be sure to either use a service such as PayPal, or a credit card (preferably with a virtual account number). This way you are protected against various Malware that tracks your keystrokes and other information.

Final Thoughts

I recently wrote about the fact that the consequences of identity theft are becoming more severe and expensive. Being careless on Facebook is not worth the time, effort, and money that it takes to recover from identity theft and Internet fraud.

One quick piece of advice is that when you are shopping online be sure to either use a service such as PayPal, or a credit card (preferably with a virtual account number). One of the most common of the credit card benefits is fraud protection. However, this should not replace the idea of being careful and using discretion while posting information online!

photos by Don Hankins

Reader Questions

Have you ever posted your vacation plans on a social network?
Do you have any of the information listed above available on Facebook or some other network?
Are you planning on making any changes to your profiles?