Oct 12 2010
There are three things you need to know in order to become extremely wealthy. What stock to buy, when to buy it, and when to sell it. If you know these three things then you don’t need extended education. Graduate degrees, decorated resumes, and a strong set of references will all become superfluous accessories in a life of lavish extravagance. Knowing how to buy low and sell high on the stock market has been the key to many people’s success.
As such, no shortage of tools have been created to discern this. There are formulas, algorithms, ratios, and of course the good old fashion hemline indicator. Businessmen spend hours reading journals and news lines always trying to glean a piece of information that hints of things to come. I’ll make no comment as to the relevance of women’s attire and the general trends of the global markets, but I will put some ‘stock’, if you will, in the news. If you learn that a company is about to get sued it might be time to lock in some profits and sell the stock. Or if you have reason to believe a new drug is going to be approved, picking up a few shares at a low price could position you for a gain. So the next logical step is to turn on the internet and search for all the latest news on a company. It promptly returns 18 million articles, at which point you turn it off again and call your broker looking for recommendations.
Now before we give up completely on researching the many news sources, let’s go back online. This time navigate to The Stock Sonar. The Stock Sonar is a tool that collects all the news on publicly traded companies. It dissects and rates each piece of it and compiles it down to a single rating. From this analysis a gauge of the general sentiment about a company is established giving you a solid indicator about whether the stock will go up or go down.
The real power of The Stock Sonar is that it turns the overall media sentiment into a numerical bottom line. The way this bottom line is derived is by categorizing each source of information as positive or negative, and then assigning an impact rating. So, if a news feed announces that the CEO just dumped all his shares, that would be a negative impact with a high rating. If the company has its annual event in Las Vegas and is flying high profile execs out there, it would be a positive rating. The Stock Sonar sifts through the constant stream of documents, article, blogs, tweets and announcements that permeate the internet and rates each and every one of them. From these, a single bottom line rating for that stock is set.
When you log in the default view displays a series of tickers and their rating. By clicking one of them, or searching for a different one, you’ll land on the Analyzer Page for that stock. At top is a graph with three data trends on it. They are positive impact, negative impact, and then the actual stock price. The positive and negative impacts are reflections of the general sentiment about a company. So when the negative sentiment outweighs the positive, the stock is likely to drop.
One of the best things about The Stock Sonar is it not only gives you its bottom line, but also gives you access to the key information it used. Beneath the chart are brief summaries of each and every article and event that comprised the sentiment ranking of the stock. To the right are longer summaries with links back to the original source. Here you can see in a safe format the many news announcements that scared us off the internet just moments ago. These can be sorted by positive, negative, or neutral impact. When making a major purchase it’s a good idea to know the big news and events surrounding a company, both good and bad.
The Stock Sonar allows you to create a portfolio of stocks so you can keep track of specific stocks without individually looking them up. The Beta version is currently available at no charge. Free accounts will always allow ten or so tickers in your portfolio, with the option to upgrade for more.
The Stock Sonar is a powerful tool for sifting through what I believe to be the strongest indicator of the market- general sentiment. The ability to scan the mass of it and condense it down to a single verifiable number is powerful. The graphs give you the ability to see the relationship between sentiment and the actual stock price and observe the effects. With this easy to use tool, perhaps you might soon know the best times to buy and to sell, stocks.