DEFINITION OF 'SOCIAL SENTIMENT INDICATOR'
A complete measurement based on aggregated social media data which helps investors and traders understand how the masses in the market feel about the market and individual stocks - and gives investors an idea of how the company’s stock might perform. Social sentiment indicators help investors and traders identify trends that they can use to generate new trading ideas, develop successful trades, create profitable portfolios and protect against risk. Social sentiment indicators also help investors identify information in social media that could cause a stock’s price to decrease in the next 24hours to two weeks.
HEDGECHATTER EXPLAINS 'SOCIAL SENTIMENT PROFIT INDICATOR'
Social sentiment indicators are based on information users post publicly to Facebook, Twitter, blog posts, discussion groups and forums. If the social sentiment indicator shows a negative change in reputation, the investor or trader can take action to protect their portfolio. Investors can also use this information to reduce potential loss. Collecting information from social media about how consumers perceive a brand can help investors identify individuals or businesses who have a strong social media influence.
Social sentiment indicators can also help companies determine how successful a marketing campaign is by analyzing reactions on social media to determine whether they are spending marketing dollars wisely and whether they should pursue similar campaigns in the future. Social sentiment indicators can further identify how consumers feel about competitors and similar products, and companies can use this information to improve their own offerings. Also, by paying attention to what consumers are praising or criticizing about their products and services using social media and other online venues, companies can assess what to expand on and what to drop or change.
By using social sentiment investors and traders can make faster decisions to capture opportunities and help hedge their own portfolios against risk.