Timely Stock Market Advice for Smart Trading Decisions
Stock Picking Software
Since the earliest days of the personal computer, investors have been relying on stock picking software to supplement their own market acumen. Traditionally, such financial analysis software has leveraged access to up-to-the-minute technical stock data, supplemented by company announcements, to provide insight into company activity and market performance. Investors have used this analysis to better guide investments, maintaining their edge and boosting returns.
However, savvy investors have long understood that the stock market isn’t just about numbers. Unstructured talk around the office water cooler – gossip, rumor, opinion, gut feelings – this sentiment shapes the market at least as much as a stock’s P/E, EPS, or Market Cap, perhaps even more. Now, finally, stock picking software is catching up – reflecting sentiment as well as technical stock data.
Too Much Sentiment, Not Enough Clarity
Fortunately and unfortunately, there is no shortage of sentiment and stock market advice expressed in the Internet age. Forums, blogs, documents, Tweets, mainstream and niche media – today’s investor faces a flood of facts, insights, and opinions – some valid and valuable, many not. So much information is available, that even sophisticated investors and stock picking software quickly bog down, processing and using only a fraction of potential sources.
In such a data-soaked environment, the challenge for today’s financial analysis software is how to harness the power of sentiment, without sinking into the quicksand of information overload.
Mining Clarity from Sentiment
The next generation of stock picking software, like The Stock Sonar, turns qualitative sentiment into structured, quantified, actionable data that investors can use.
These advanced financial analysis software systems use cutting-edge text-mining and semantic matching techniques to perform real-time analysis and assessment of quantities of data that far exceed human capabilities. Unstructured data from multiple sources is analyzed, intelligently weighted, and then scored on a scale of positive or negative values. Full source transparency allows easy drill down to allow investors to review source material in original format.
These financial analysis software tools also offer interactive charting, enabling investors to better understand the full share price impact of a given event by correlating positive and negative sentiment with actual technical stock data – providing a comprehensive snapshot.
By automatically, objectively, and accurately measuring sentiment in real-time, stock picking software like The Stock Sonar extends the reach of investors. These systems enable investors to tap into insights from analysts, media, social media, and company announcements, gaining clearer real-time understanding of the potential effect of sentiment on stock values.
A Holistic Perspective
When selecting stock picking software, a holistic approach is preferable. Traditional financial analysis software provides valuable insight based on readily-available technical stock data. Supplementing this, stock trading software like The Stock Sonar – which is based on sentiment analysis and uses advanced text-mining and information extraction technologies – provides a broader perspective, and delivers actionable data based on the market’s true driving force: people.