Certain Investigations on Stock Forecasting using Social Media

Nowadays, social media has revealed its predictive influence on a variety of domains, which requires the use of its contents to forecast the stock trends. Social media's collaborative knowledge is much useful in predicting the directional movements of the stock price as up or down. The sentiments that exist in these data can be analyzed and used to mine interesting correlations in stock price movements which would open up a plethora of the relationships between stock prices and sentiments. A combination of technical, fundamental and sentiment indicators is employed in forecasting the stock trends. Experimental results on stock data sets indicate that there is a correlation between social media sentiments and forecasting. The analysis of sentiments along with wisdom of crowds can help to compute the future performance of stock trends automatically to enable the members on social network to get benefitted from effective decision making process.