Work

Quantifying Trading Behavior in Financial Markets Using Google Trends

Year: 2013

Type: article

Abstract: Crises in financial markets affect humans worldwide. Detailed market data on trading decisions reflect some of the complex human behavior that has led to these crises. We suggest that massive new data sources resulting from human interaction with the Internet may offer a new perspective on the behavior of market participants in periods of large market movements. By analyzing changes in Google query volumes for search terms related to finance, we find patterns that may be interpreted as "early warning signs" of stock market moves. Our results illustrate the potential that combining extensive behavioral data sets offers for a better understanding of collective human behavior.

Source: Scientific Reports

DOI: 10.1038/srep01684

Authors: Tobias Preis, Helen Susannah Moat, H. Eugene Stanley

Institutions: University of Warwick, The Alan Turing Institute, Boston University, University College London

Language: English

Topic: Complex Systems and Time Series Analysis

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: gold

Estimated APC paid: $2,690