Trader Talk is simply the shortened form of the more commonly recognized investor chat or virtual forum. It is essentially an online chat room in Wall Street, in which Wall Street professionals chat with other industry insiders and trade shares with each other. While this service has gained a lot of popularity in recent years due to the proliferation of the financial crisis, some industry insiders (namely stockbrokers) are weary of using it as a means of making business transactions. This is because Trader Talk is a venue where Wall Street traders openly discuss their moves and share tips and strategies, and for many insiders, discussing such matters as the buying and selling of stocks is extremely dangerous.
The main reason why many traders are wary of Trader Talk is because it is essentially a free space for those who are looking to solicit business from other investors; and what happens when you solicit business from other investors can be scary. There is no telling how a penny stock will perform just one day. Thanks to this volatile environment, many traders tend to refrain from engaging in speculative trading activities in the hopes that they will at least make some money from their endeavors, but if you don’t know how to analyze market conditions properly or if you do not conduct yourself with the appropriate respect, you can put yourself in danger of losing everything you have invested.
To ensure your security in Trader Talk trades, you need to know exactly how to conduct yourself in such online forums. One way to do this is to avoid asking too many questions about how a particular stock is performing. Ask how the price will change and how long it will take for the stock to return to its previous level; after all, you do not want to be left holding the bag when an important decision comes down the pike. Similarly, do not discuss specific trading tactics unless you have mastered them and your broker allows it (some will even barter for their fee in this regard). After all, this is a place for fellow investors to share their knowledge, not for you to try to steal the spotlight.