A story on RT (rt.com) attracted my attention. A US company is looking at market predictions using algorithms to analyse tweets. There is enough product development here to see the possibilities in the future. Personally I wouldn't want to bet the farm on such a methodology but it makes for interesting reading and may offer me ideas on doing my own due diligence. For me the action is akin to looking for some interesting investment ideas buried in the noise of Jim Cramer's Mad Money. Everyone and a while I find he mentions something interesting. Same sort of thing here. http://rt.com/usa/272758-twitter-predict-stock-market/ A Google search turns up a web site, accounts on Twitter and LinkedIn, involvement with Bloomberg and more articles on the subject. https://www.google.com/search?q=iSentium HTH. YMMV.
Interesting. Algorithmic investing is something I am very interested in. I think it's getting to the point where it will be very hard for investment firms to operate without using algorithms in some form. The whole trading environment seems to be changing very rapidly.
Twitter is quite full of spammy tweets, fake accounts and robots posting and re-tweeting. It seems it can be dangerous to trade solely on a tweet - feels like LV gambling. However social sentiments investing is here to stay - stocktwits.com have a great site and community.
If only predictions could be accurate all the time but there's always that possibility that prediction no matter where we get them from will turn out to be wrong. In fact should some smart people learn that investors are over-relying on predictions they can use that to their advantage. Leak out false information, have doom predicted and they'll make a killing off that.
Well good luck to them on that idea, its will!certainly be interesting to see how it goes. Interesting only because it won't be my money riding on the outcome of their system. As with any prediction, at the end of the day it's just that, a prediction and nobody can ever know for certain which way a market is going to go. To try and link up a stock market prediction based on twitter seems a little odd to me, but if it pays off for them, I'm sure they won't care what anybody thinks, especially me.
