Trading On Sentiment

Trading On SentimentIn his debut book on trading psychology, Inside the Investor's Brain , Richard Peterson demonstrated how managing emotions helps top investors outperform. Now, in Trading on Sentiment , he takes you inside the science of crowd psychology and demonstrates that not only do price patterns exist, but the most predictable ones are rooted in our shared human nature. Peterson's team developed text analysis engines to mine data topics, beliefs, and emotions

In his debut book on trading psychology, Inside the Investor's Brain , Richard Peterson demonstrated how managing emotions helps top investors outperform. Now, in Trading on Sentiment , he takes you inside the science of crowd psychology and demonstrates that not only do price patterns exist, but the most predictable ones are rooted in our shared human nature. Peterson's team developed text analysis engines to mine data topics, beliefs, and emotions from social media. Based on that data, they put together a market-neutral social media-based hedge fund that beat the S&P 500 more than twenty-four percentthrough the 2008 financial crisis. In this groundbreaking guide, he shows you how they did it and why it works. Applying algorithms to social media data opens up an unprecedented world of insight into the elusive patterns of investor sentiment driving repeating market moves. Inside, you gain a privileged look at the news and social media themes that move investors, along with time-tested techniques to make the smart moveseven when it doesn't feel right . This book digs underneath technicals and fundamentals to explain the primary mover of market prices the global information flow and how investors react to it. It provides the expert guidance you need to develop a competitive edge, manage risk, and overcome our sometimes-flawed human nature. Learn how traders are using sentiment analysis and statistical tools in order to: