SENTIMENT ANALYSIS

The stock market is one of the most sensitive fields, where sentiments of the people can change the trend of the entire market. Actually, there are many factors, affect the movement of the stock market and, the sentiments of the traders are also one of them drive the market. Such news or information influences the people around the globe and if the news is from the stock market, investors will be also influenced and they will take the decision of buying or selling of stock accordingly, that will have a positive or negative impact on the price of the stocks trading on exchanges.

What is Sentiment Analysis and How it Works?

Sentiment analysis is basically the process of analyzing the sentiments of people through various platforms like social media and similar websites, where people can freely express their feelings and opinions about anything they think. And classification of such sentiments can be done at the phrase level, sentence level, and document level. The sentiment analysis uses Natural Language Processing (NLP) to divide the language units into three categories: Negative, Positive and Neutral.

How Sentiments Analysis Used in Stock Market Prediction?

Actually, sentiment analysis and the stock market is a well-researched problem. As there are already lots of forces behind the movement of the stock market or particular share of a company. Maybe due to negative sentiment, the stock price goes down or if there is any positive sentiments the stock prices increased because of this optimistic sentiments. Although, there is no single technique to predict the stock movement accurately, so researchers have done lots of experiments to get better results. But due to the universal use of social media websites, they can be considered as important in the prediction of stock movements, as investors share their opinions and thoughts in the media.

The way of sharing their knowledge and emotions with society and social media drives the businesses to collect more information about their companies, products and to know how reputed they are among the people and thereby make decisions to go on with their businesses effectively.

SENTIMENT ANALYSIS ON STOCK MARKET

STEP 1: IMPORT DATA

STEP 2: MODEL

STEP 3: RESULTS