Being able to predict movements in the stock market – with any level of accuracy — has drawn a lot of attention lately. I’m personally glad to see Professor Bollan – the author of the famous Twitter-sentiment-stock-market-predictor paper – back in the fray.
Of course, I’m not objective– my Tradestreaming book was early on the scene to take a look at how research and investors are finding ways to use social media to make better — smarter — investment decisions.
This time, Bollan takes the discussion a step forward in looking for the connecting between social media and investing– by looking at many of the tools investors use to predict future stock market moves.
These indicators, like the Investors Intelligence or Daily Investor Sentiment, measure investor mood. Behavioral finance stresses that factors like emotion and mood impact investor decision making and therefore, markets.
Bollan’s new paper, Predicting Financial Markets: Comparing Survey,News, Twitter and Search Engine Data compares a set of best forecasting tools to see which are most accurate and useful for investors.
How to use social media to invest
Bollan’s findings include: Continue reading “How to use Twitter to make money in the stock market”