The Rise of Social Investing: Why Following Experts Might Be Your Best Move
That's the idea behind a fast-growing trend known as social investing, a model that's becoming increasingly mainstream thanks to platforms like eToro and X accounts like Pelosi Tracker, which has amassed a following by tracking the trades of high-profile politicians and public figures.
The big appeal? You don't need to be a market genius to make smarter moves; you can simply follow people who are.
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When Elon Musk Posts, Markets Listen
A 2023 peer-reviewed study in the Technological Forecasting and Social Change journal dug into the so-called Musk Effect. It examined 47 cryptocurrency-related posts by Tesla (NASDAQ:TSLA) CEO Elon Musk and found that even a single X post could result in abnormal returns of up to 4.79% within an hour, along with surging trading volumes. In the first two minutes, the abnormal returns were 3.58%.
The researchers wrote that Musk's posts often blur the line between jokes and market-moving statements. One famous example? In 2021, he simply changed his X bio to '#bitcoin,' causing the price to jump from $32,000 to over $38,000 in just a few hours. That single act added $111 billion to Bitcoin's market cap.
This brings up questions about whether that's fair or safe for everyday investors, but it also makes something very clear: big personalities online can really move the markets, and more and more people are paying attention.
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Social Investing Puts You In The Room With Experts
The idea behind social investing is simple: if a seasoned investor or market mover is making a move, and you have access to that information, why not ride the same wave?
That's exactly what eToro (NASDAQ:ETOR) has built its platform around.
With eToro's CopyTrader feature, you can view and automatically replicate the portfolios of top investors, including those with long-term track records of success, with as little as $200. Whether you're into crypto, stocks, or ETFs, you can browse real-world returns and match your strategy to theirs with just a click.
It's investing, but social, transparent and tailored to match your goals.
Investing In The Age Of Digital Overload
It's no secret that markets move fast, especially when social media accelerates the news cycle. But this constant flood of noise is exactly why some investors are choosing curated, signal-driven strategies instead of relying on gut instinct.The study on Musk's social media influence pointed to a broader issue: investors struggle with information overload. Too many headlines, too many conflicting opinions, and too little time to sift through it all.
That's what makes social investing appealing: it filters the noise by giving you real-time access to what skilled traders are actually doing, not just saying.
Watch What They Do And Act Accordingly
Social trading doesn't guarantee returns, but it offers a level of transparency that traditional finance often lacks. With tools like Pelosi Tracker, investors are watching lawmakers' trades for signs of market conviction. And with eToro, you're not just watching, you're participating.
When one social media post can send markets soaring or crashing, just keeping up with the news isn't enough. You're better off following the people who are already making big moves.
Read Next: Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die."Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market.
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This article The Rise of Social Investing: Why Following Experts Might Be Your Best Move originally appeared on Benzinga.com
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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