Stock Circles

What is Street Sentiment Trading?

What is Street Sentiment Trading?

Street sentiment is a popular behavioral analysis concept used to determine trader sentiment. The hypothesis behind analyzing traders sentiment is quite logical since the market reacts to news events.

Stock Circles has been testing street sentiment trading for the last 2 years by training an artificial intelligence workflow to determine which stocks are most talked about and if the aggregated information is positive or negative. Its trading robot can calculate where the opportunities are and generate an actionable 'buy' or 'sell' signal.

The innovation basically emulates what day traders call 'trading on the news' but without the need to monitor a Bloomberg terminal all day long.

Human vs. machine

"This innovative technology is proving to be quite valuable to short-term stock investors", says Jana Clemons, Stock Circles CMO. "Properly harnessed, it is more accurate than traditional methods and it saves a lot of time."

On the accuracy subject, Ms. Clemons explains that "an experienced trader gets his trades right 49% of the time at best. It's a coin toss. While a well thought out street sentiment strategy can fetch up to 70% in trade accuracy over the same period. That's a big improvement over a human trader."

On the time savings subject, Ms. Clemons confirms that an automated trading strategy requires only a tiny personal investment compared to traditional technical analysis methods. "Once enabled, the robotrader takes care of screening and auto-trading while his human master can attend more important life events."

On the advisory side, Stock Circles management predicts that innovations like these are set to initially help businesses manage more accounts without needing to add extra analysts. "Profits should rise", says Clemons.

In the long run, she predict that this innovation will become a commodity. "As the technology becomes more accessible, Millennials might not see the need to have someone manage their portfolio since all they will need is access to the Internet and a brokerage account."

If you are interested in street sentiment investing or just curious about how this innovation can help you become a better investor, you can try Stock Circles Smart Auto-Trading in simulation mode at https://www.stockcircles.com.

About Stock Circles

Stock Circles is a Los Angeles software company with the mission to simplify stock investing. For further information, please contact Ms. Jana Clemons via email at: jana@stockcircles.com