This post The Online Privacy “Hack” That Could Generate Millions in Profits appeared first on Daily Reckoning.
Today I want to discuss how to pinpoint the most accurate trading signals on the market…
How the investing herd collectively feels about an individual stock is hands-down the hardest piece of market data to accurately measure.
For years, Wall Street has tried to nail down a way to profit from how the public views a specific investment. How can we know what the masses are going to invest in before they do it?
Fifteen years ago, we had no way of knowing what the public really believed about a company until after they invested in it — or didn’t.
That’s because a soaring or plunging share price was the only reliable indicator of what people thought of any given company, at any given time.
But that’s all changed now thanks to the power of the internet and social media.
Communication is in our DNA. And when it comes to investing, people brag about wins and grumble about losses. They seek validation for their belief that a particular stock is a good or bad play.
They report news and rumors about companies, their products and personnel. And very often, they ask others for opinions before they buy shares.
The difference is that now — instead of all this happening at the country club or the neighborhood poker game…
It’s all happening online, in public forums that millions of people follow obsessively.
As you can probably guess, this is an incredibly powerful force for shaping and revealing public opinion in our modern world. And when we focus on chatter about stocks, we can play those sentiment shifts for profit…
My computer is constantly gathering data. Thousands upon thousands of online interactions.
Don’t worry — I’m not up to anything fishy or illegal. My computer programs aren’t for selling contraband on the “dark web” or hacking into anyone’s bank account.
Instead, my algo is trolling the far corners of the internet to learn what countless investors think about investments.
Once I collect and process this powerful public sentiment data, my advanced computer system can lead us to the best “profit tapping” opportunities on the market.
Let me give you a snapshot of how that’s possible.
Check out this map:
Here you can see how stock “chatter” clusters around places like Washington, Philadelphia, New York, Boston, Chicago, Miami, Dallas, Los Angeles, San Francisco, Seattle, Vancouver, and Toronto.
More than a million feeds I picked up during my concept validation testing tended to cluster around the major financial centers. And that stands to reason, since I’m tracking a diverse basket of stocks across multiple sectors.
In other words, since these test names have nothing in common, aside from simply being listed and tradable, it makes sense that the most info on this broad spectrum of companies would come from the places where the most stock trading tends to occur.
My new algorithm has the ability to collect vast amounts of data on these stock market interactions. I then filter and analyze that data …read more
Source:: Daily Reckoning feed
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