For any one who knows the main driver for the stock market is the consumer sentiment. And Social media serves as the best way to access this public sentiment for free. All you need to do is to tap on this sentiment deep enough to make a viable decision. Tapping the huge population and tracking their social feeds is the most tricky part here ( if not the one i wish to discuss later ) , There are softwares built to efficiently derive this sentiment and supercomputer which are there to make sure a huge chunk of the population falls under the scanner . This though is the technology which is not at the disposal of common individuals. But for a second lets just think that you have a supercomputer at your disposal which would tap into the sentiments from people all across the world and convert this sentiments into stock market tips which you may choose to follow.
But I have 2 concerns here ,
1) How do I make out between a genuine and a fake sentiment , there are a lot of people who would just post a social statement without actually doing anything , or might just post a fake social statement . So how do I filter the genuine ones from the fake ones ? If this can be done or is already being done then i am not aware about the same.
2) Does the sentiment come first or the investment comes first . An investment into the stock market will cause you to form a sentiment , or would a sentiment cause you to invest in the stock market . This is puzzle similar to who came first Hen or Egg ? This is a cyclical process which does not have a fixed head or a tail.
Another Concern ,
If I believe that there is mechanism for the above and the above two concerns can be taken care of , and we can develop a system to convert social sentiments into stock market tips . Then can this system be cheated , and cheated by any individual who has access to social media . A person might not lie but only cause a selective of his intentions and sentiments to go public and hide the rest . He can modify his sentiment in such a manner to benefit him and only him and this audience is going to be huge . This can cause companies to crop up who can specialise in creating a social sentiments , which go under the tracker of a lie detector .
Lets believe all of the above is possible and all my concerns will be taken care of ,
Then if everyone has the same tips , how does one make a profit in the market ? Because the markets model is ones gain is others loss . Would everyone have access to the above system or is the above system already in place and used when all of us are just thinking of its possibility ?
Would the above system just turn into news tips if everyone starts using it , because one of the things i have learnt from the market is never follow the tips of the news channel or that "market guru ".
Thank you .
But I have 2 concerns here ,
1) How do I make out between a genuine and a fake sentiment , there are a lot of people who would just post a social statement without actually doing anything , or might just post a fake social statement . So how do I filter the genuine ones from the fake ones ? If this can be done or is already being done then i am not aware about the same.
2) Does the sentiment come first or the investment comes first . An investment into the stock market will cause you to form a sentiment , or would a sentiment cause you to invest in the stock market . This is puzzle similar to who came first Hen or Egg ? This is a cyclical process which does not have a fixed head or a tail.
Another Concern ,
If I believe that there is mechanism for the above and the above two concerns can be taken care of , and we can develop a system to convert social sentiments into stock market tips . Then can this system be cheated , and cheated by any individual who has access to social media . A person might not lie but only cause a selective of his intentions and sentiments to go public and hide the rest . He can modify his sentiment in such a manner to benefit him and only him and this audience is going to be huge . This can cause companies to crop up who can specialise in creating a social sentiments , which go under the tracker of a lie detector .
Lets believe all of the above is possible and all my concerns will be taken care of ,
Then if everyone has the same tips , how does one make a profit in the market ? Because the markets model is ones gain is others loss . Would everyone have access to the above system or is the above system already in place and used when all of us are just thinking of its possibility ?
Would the above system just turn into news tips if everyone starts using it , because one of the things i have learnt from the market is never follow the tips of the news channel or that "market guru ".
Thank you .
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