Using your SEO (search engine optimization) knowledge in stock market investment can be profitable. By understanding how search engines rank web pages, you can develop strategies to know how much a company’s stock is worth.
Can you use your SEO know-how to profit from the stock market? What steps should you take to improve your chances of earning from the stock market through SEO?
This article discusses how SEO can help you profit from the stock market and the steps you can take to achieve such a strategy.
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How Can an SEO Strategy Help You Beat the Stock Market?
The best way to work around a highly-competitive industry like the stock market is to stay ahead of the competition. You can use your SEO knowledge to work for you regardless of the type of business. Follow your niche to avoid losing money.
You can determine whether or not to invest in a company’s stock by monitoring its search engine results page or SERP.
SERP is the page that search engines, such as Google and Yahoo, show to respond to a user’s search query. It includes organic search results, PPC (pay-per-click) ads, and paid searches.
Users are likelier to click the results on the top page. SEO can help with a company’s SERP ranking position. You can spot a promising company by monitoring its ranking in search results.
The most reliable signal for monitoring a company’s position in SERP is by reading its press releases. You will better understand a company’s performance by knowing where they stand in SERP.
Look for the company’s overall market share to learn of the company’s profitability.
SEO and the Stock Market: Steps That Can Help Beat the Stock Market
Public traded companies’ performance is tied up with their performance on the SERP. The most prominent example is Yelp, whose success and revenues were significantly affected by SERP.
Customers look to the opinions of others to guide their decisions. Indeed, 72% of consumers check service and product reviews before making a purchase.
A survey shows that restaurants and cafés reviews matter to their customers more than any other industry. A study showed that a one-star increase in a restaurant’s Yelp review could boost its revenue by 5% to 9%.
In general, travelers spend 71% of their time researching their trips online. Customer reviews and experiences are crucial in the service industry, such as hotels and other accommodation establishments.
Consumers look for a place with minimal cost but optimum comfort for their money.
Knowing a company’s stand on SEO can help you decide whether or not to invest in its stock. Here are the steps to help you beat the stock market through SEO.
The first step is identifying publicly traded companies largely dependent on search engine ranking for their success. Look for companies highly influenced by their SERP rankings and least likely affected by non-ranking factors.
The companies you are looking for make most of their income via a website and a lot of website traffic from search engines. Make sure these companies are listed on the stock market.
The next step is monitoring a company’s position in SERPs.
Keep track of when a company gets a significant bump upward, a huge downgrade, or a manual penalty caused by search engines.
To beat the market and other stock traders, you have to be the first to become aware of changes in a company’s stock. You cannot predict the future of stock prices, but you can determine the stock’s worth by knowing a company’s SERP standing.
The third step is coming up with a strategy.
Decide if you are buying shares of a company’s stock. Think beforehand if you will short-sell if the company receives a Google penalty.
It would be best to know how much of a search engine result bump will affect expected revenues and how it will affect the stock price.
You might not have time to consider these things while SERP changes are happening. Preparing yourself for possible changes when planning your strategy is essential.
The fourth step is waiting and monitoring.
Continue to measure and monitor the SERP performance of companies. Execute your strategy as soon as an opportunity arises.
The first traders to react to these market changes are always at an advantage.
The last step is hoping and praying your plan works.
There is no guarantee in stock market investments. Things may not go as planned. You can only hope for the best and trust in your strategy.
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