The purpose of this project is to combine this research with machine learning. In this research was found that the search volume for certain (financial) words are linked to the stock price of the Dow Jones Industrial Average stock price, and can in most cases predict a dip in the market. Eugene Stanley, "Quantifying Trading Behavior in Financial Markets Using Google Trends". The concept for this project came from research by Tobias Preis, Helen Susannah Moat, and H. I currently have a sell based on search volume for Apple products.The data used is downloaded from Google Trends. I have also added in where my triggers are for buy and sell points. Fewer people are looking for Apple products based on this graph. You can see that searches for the product are down. Here is why I think Apple is a hold and not a buy or sell. My estimate based on the current Google Trends graphs is Apple is a “hold”. I wanted to finish this post before the earnings report of Apple tomorrow so I can show a live prediction. By finding the gaps between the two we can find profits.Īpple Example: Here is a graph of Apple, aapl, and the stock price. It has very little correlation to the intrinsic value of the brand given by the number of searches for the actual brand name. If you look at the stock price of the graph, you will see that the more times people search for the ticker symbol the higher the stock price goes. People usually search this term when they want to buy shares in the company. This graph shows the number of times people search for AMZN Amazon’s ticker symbol. Here is a graph that when combined with brand searches and ticker symbols tells the story of how Amazon got to $591 a share.
Again, I stress, just because I do something does not mean that it will work 100% of the time, but what follows is a way I have made money, not always in a month, but usually in a year. Great investors like Warren Buffet have said “Be fearful when others are greedy and be greedy when others are fearful” We can use Google trends to find when people are both fearful and greedy and juxtapose that information with a relative value of the stock. Using Google Trends for Investing: I am not an investing adviser, but I am an individual investor always looking for an edge. You can see that when people are interested in snow they are not interested in camping. The above image shows a graph of the times people type in “camping” and “snow” into google search. You can also use the tool to compare several terms at one time. What is Google Trends: Google Trends is a graph that shows the number of times a specific word or string of words is searched for. This article explains how I have found profits in the stock market using Google Trends.ġ: What is Google Trends 2: Using Google Trends for Investing 3: Google Trends and Public Company Searches 4: Google Trends and Ticker Symbol Searches 5: Apple Example I use the tool to understand the macro landscape of what people are interested in. Google Trends was launched in 2006 and since that time I have used Google Trends at least once a week. If you have followed my last two articles you might think I have no love for Google, however, I LOVE Google Trends. (This article was first published in LinkedIn on Januyou can see the predictions made were right for the time)
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