The Stock Market Movements And The Social Media

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The stock market movements are complex and difficult to predict with certainty. Strategies tend to work for a while before they fail terribly. Mathematical and statistical formulae don’t hold for long. This is mainly because some of the factors influencing the demand/supply of a stock cannot be quantified and may be poison distributed. Historical patterns are broken every now and then while fundamental data bears different effects on stocks at different times of an economic cycle. However, there appears to be a correlation between the stock market movements and the atmosphere in the social media. This is yet to be tested in this study, even though there are numerous studies concerning this topic. However, through the AP’s Twitter account,…show more content…
This must be relevant data that is cost effective to help us answer the research questions stated in the introductory part. We are going to collect sample data and test it for conclusions. The main data collection methods will be secondary data from online sources and through questionnaires. Our focus on secondary data will be on social media sources that are reliable and trustworthy. The sources should have a profile for influencing stock markets with their information. As for the social media, we shall select three major ones. These are Facebook, Twitter, and YouTube. We will use 6 days’ data; 3 of which are prices prior to the news on social media and three days after the news. We shall focus on the average price movement, the standard deviation, and the volume traded in the six days. In this method, we shall adapt these assumptions: 1. The particular social media news are those influencing the stock market only. 2. The data gathered from secondary sources is accurate and relevant for our research. 3. Data collected from questionnaires are accurate and true. 4. Majority of fundamental traders influence the market most. That is, technical traders have little or no effect on stock prices. The statistics will then be studied using Microsoft Excel to get averages, pie charts, and standard deviations. ANALYSIS AND PRESENTATION OF FINDINGS After comprehensive data
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