Sentiment Analysis on FB and other stocks is an increasingly popular trading tool. By using sentiment analysis, you can understand the “herd mentality” and conduct your thinking accordingly.
And don’t worry…
Even if you’ve never used sentiment analysis before, this blog post will share the most popular free online sentiment analysis tools. And you’ll learn how you can use sentiment analysis to become a contrarian trader or investor, whether you’re looking at FB or another common stock.
So first let’s give a quick refresher on what sentiment analysis is and how you can use it. Then I’ll share some of the best free online sentiment analysis tools.
Introduction to Sentiment Analysis Online:
Sentiment Analysis, whether it’s on FB or any other stock, is a way to keep your finger on the pulse of how the market feels about a stock. Despite the incantations of efficient-market theorists, the buying and selling of stocks can be a very emotional experience. And that’s just what online sentiment analysis strives to cash in on.
Sentiment analysis gives you a consensus about how other market participants feel about your stock idea. It shows you how bullish and bearish the investment community is. This is usually accomplished by taking surveys of traders or algorithmically scanning Twitter and other public discussion boards to determine how traders feel about a certain equity.
This type of analysis can really help you improve your own stock market sentiment. And it can also show you when you’re with or against the consensus which is always helpful. So where can you find sentiment analysis tools online? Glad you asked.
Here are the best sources…
Free Online Sentiment Analysis Tools:
There are a number of free online sentiment analysis tools that you can use to analyze FB and other popular stocks. So here are the top 3:
- SentDex Free Sentiment Analysis: SentDex has a great tool that stock traders can use to get up to date sentiment information. The free trial only shows the most popular stocks like FB, but this can give you a lot of sentiment analysis insight into sectors and industries in general.
- The Market IQ is a premium sentiment analysis tool. And you can get a free snapshot of what it offers on Marketwatch.com. Additionally, if you enter a ticker into the MarketWatch search bar you’ll be able to see sentiment analysis on each and every stock. The thing I really like about the MarketWatch sentiment indicator is you can see both analyst sentiment as well as social sentiment. This gives you a neat look at how retail investors and The Street often have different perspectives on the same stock picks and ideas.
- StockTwits Social Signals: StockTwits offers some really interesting sentiment analysis data on FB and other popular stocks. They do a really great job visualizing the sentiment from Stocktwits status updates. And this gives you a unique real-time look at how traders are interpreting market data. It’s amazing that these sentiment analysis tools are available free online.
Hopefully these sentiment analysis tools can help you improve your stock trading and investment decision making. At the very least, being aware of sentiment analysis can help you see how other traders and investors are feeling about popular stocks like FB.
And By The Way: If you’re looking for more information on how to improve your approach to finding stocks and trading ideas, I recommend you download my free e-book below. You’ll also get free weekly updates sharing my favourite resources and tools… so why not give it a try?