Advanced Trading Techniques (Sentiment, News, Algorithmic, etc.) Flashcards
How does sentiment analysis affect stock trading?
Sentiment analysis looks at market mood (bullish or bearish) through news, social media, and market reactions to predict future price movement.
What is contrarian trading?
Contrarian trading involves going against the prevailing market sentiment (e.g., buying when others are fearful).
What is news-driven trading?
News-driven trading involves making quick trades based on breaking news or earnings announcements that can affect stock prices.
How does algorithmic trading work?
Algorithmic trading uses computer programs to execute orders based on predefined criteria, allowing traders to execute strategies at high speed.
What is high-frequency trading (HFT)?
HFT is a form of algorithmic trading where trades are made in fractions of a second to capture small price movements.
