Buy/Sell Based on Fear & Greed Index? Do You Have Other Indicators?
Some say that timing the stock market is too difficult. Therefore, an investor chooses to follow investor sentiment in the market: buying when the market is in extreme fear and selling when it turns to extreme greed.
CNN's Fear and Greed Index showed that during the major drop in August, the market reached extreme fear, with a value of 16.
Do you think this indicator can be used to determine bottom-fishing opportunities?
Looking at a longer time frame, extreme fear has typically corresponded with major market declines.
However, it doesn't always work perfectly; for example, after reaching extreme greed in December, the market continued to surge in the following three months.
There is a study that combines stock market technical patterns with news sentiment to analyze their impact on stock performance.
When combining sentiment signals with pattern signals (as shown in Figure (b)), the cumulative abnormal returns (i.e., excess returns) show more significant changes compared to using only pattern signals (as shown in Figure (a)).
This suggests that incorporating sentiment signals may enhance the predictive power of the pattern, making investment strategies more effective. $Tiger Brokers(TIGR)$
Do you agree that market sentiment can be viewed as buy/sell signals?
Do you get influenced by news sentiment when trading?
Besides technical indicators, do you have any unique stock trading indicators?
Leave your comments and also post to win at least 5 tiger coins~
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maker sentiment can influence the way how one trades... important to flow with the market instead.of against it.
technical indicators and various resources can be a good help too as these will generally tell you how economy is performing and may cause the way how market swings...
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Do you agree that market sentiment can be viewed as buy/sell signals?
Do you get influenced by news sentiment when trading?
Besides technical indicators, do you have any unique stock trading indicators?
Leave your comments and also post to win at least 5 tiger coins~
However, avoid emotional trading based on daily fluctuations or media hype. Instead, focus on long-term goals and diversify your portfolio to reduce risk. Dollar-cost averaging—investing a fixed amount regularly—can also smooth out market volatility, reducing the need to time perfectly. Finally, be patient and stay informed, as market timing requires constant analysis, but long-term investing often yields better results.
Yes, market sentiment can be effectively used as buy or sell signals. Sentiment reflects the collective mood of investors and can indicate whether the market is generally optimistic (bullish) or pessimistic (bearish). This mood often drives market trends and can provide actionable signals for trading decisions. For example, strong positive sentiment might suggest a buying opportunity, while negative sentiment could signal a potential sell.
Regarding news sentiment, it does play a role in my trading approach, but it's not the sole factor. News events can quickly impact market sentiment and create trading opportunities, so I monitor news closely. However, I balance news sentiment with other elements of my strategy, such as technical analysis and fundamental research, to make well-rounded decisions.
In addition to traditional technical indicators like moving averages and RSI, I use some unique stock trading indicators. These include sentiment analysis tools that track and interpret market mood from various sources, such as social media and financial news. I also employ custom algorithms that analyze patterns and anomalies not typically covered by conventional indicators. These unique tools help me identify potential trends and trading opportunities that might not be apparent through standard methods alone.
How about you? Come and share with us guys! @Tiger_comments @TigerStars @CaptainTiger @MillionaireTiger @TigerGPT @Tiger_SG @ASX_Stars @Daily_Discussion
然而，它並不總是完美地工作；例如，在12月達到極度貪婪之後，市場在隨後的三個月裏持續大漲。
CNN的恐懼和貪婪指數顯示，在8月份的大跌期間，市場達到極度恐懼，數值16。
玩股票賺錢大多數人熟悉的，是透過「低買高賣」來賺取價差。意思是，當你買進一間公司的股票，只要公司持續成長，公司股價也會跟著上漲，當股價超過當初買進的價格，就可以透過賣出股票產生的「買賣價差」獲利。
固定領股票股息
另一種玩股票賺錢的方法，是傾向於領取公司所發放的股息。正常情況下，當公司賺錢的時候，會將一部份的獲利以「現金」的方式回饋給股東，可能是每月、每季或者每年發放一次。這就是「股息」
另外也有公司會發放「股票」、「贈品」來回饋給股東，因此如果你打算靠領股票股息賺錢，那你在投資之前就需要先確認，該間公司是以何種方式來回饋股東！