quantifying trading behavior in financial markets using Google Trends
This article by Preis, Moat, and Stanley on quantifying trading behavior in financial markets using Google Trends has two primary research questions. Firstly, the scholars are assessing whether Google Trends reflected the current state of the economy. The scholars also try to figure out whether Google Trends had played a role in providing insight into future tendencies as far as the behavior of economic actors is concerned.
These study questions were justified using the problem these scholars are aiming to address. The problem in question resonates with the scope of trading behavior in the financial markets. Therefore, the scholars justified their research questions by assessing factors revolving around the increasing amounts of information reflecting the aspects of daily endeavors and how they represent opportunities to experts to research and address fundamental trends. These scholars also went further in their justification to look into the financial markets and categories them as prime targets for relevant quantitative assessments. It is through their justification that it could be ascertained that market forces exert impacts on both geopolitical events and personal fortunes. This generates considerable attention to justify a research concern.
The target audience for this research study includes financial, economists, and other economic actors. This is a result of how this study investigates people’s daily endeavors, as well as financial markets using trends, searched on the internet. The data extracted also shows the prevailing states of the markets and how they can be used to anticipate future trends. From this study, it is evident that the findings are useful to analysts, economists, and other relevant actors because they are consistent with various periods that interest investors.
There are a variety of variables that the study evaluated before coming into a conclusion. Since the concern was to assess trading behaviors in the markets using Google trends, some of the most relevant and operative variables include the number of searches that were conducted on the internet as well as the general orientation of the decisions of trades. These variables were operationalized to ascertain the relationship between them. The operationalization of the variables resulted in an analysis of aspects such as closing prices, the variability of trends, and consistency in the prevailing market trends.
This study employed an investigative method of data collection, where the researchers formulated questions and used the relevant variables to conduct internet searches. The investigative approach utilized Google as its main search engine because most of the relevant information could be easily accessed. The major statistical approaches used to analyze the data collected included the measures of central tendencies together with the standard deviation. The central tendencies were used to find the distribution of the variables. The standard deviation statistical operationalization was majorly used to ascertain how widely the variables were dispersed. The major subjects or participants in this study are the various market actors such as traders, financial experts, and buyers.
From the study analysis, the results show that there are prevailing warnings in every market. This implies that every stock market experiences fluctuations. It is also evident that the combination of market behavioral information provides a better comprehension of the general human actions in the market. The target audience of this study can benefit from the article by using its findings to predict the prevailing market conditions. From this article, I have realized that the collection of behavioral data can be critical in making collective decisions about prevailing market forces. This article could inform my group about the crucial information about markets as well as the stakeholders corresponding to the sets of data.