News Sentiment by Stephen Massel
A New Frontier
News data, which has long been the province of institutional traders, is now making its way into the hands of retail traders. Here’s a look at how you can incorporate this data into your trading strategies.
We all know that news moves the markets, but what is less easy to determine is exactly how the market will react immediately after the news event as well as later, once market participants have had a chance to digest and analyze the news in more detail. The algorithmic interpretation of these news events and more detailed news stories has long been the province of the hedge funds, which have the resources to spend on research & development in this specialized area. However, as with most advanced technological developments, there comes a time when it becomes more widely available. The use of news analytics and news sentiment has reached this point, and more and more traders are now gaining an edge by using news data.