There is a famous story of the 1929 stock market crash. The crash led the world to enter into a depression period. The story begins with Former president Joe Kennedy’s shoeshine boy who gave him a stock tip. Now having years of experience in the stock markets, Mr. Kennedy thought something was strange. The intelligent and old investor thought, “when a shoeshine boy is giving out stock tips, it is the right time to get out of the market.”
Then the next day, Mr. Kennedy liquidated all of his holdings by making enormous returns from the market. Then the market plummeted 10% for the first day and then the following Monday and Tuesday. Later they were called Black Thursday, Black Monday, and Black Tuesday, respectively. Therefore, the story depicts that the number of investors in the stock markets affects the prices and valuations of the stock market.
However, some analysts have different opinions, and they still believe that investors’ attention while purchasing the stock was a thing of the past; it does not affect the stock markets now. As, now, investors and traders can open a demat account online with any hassle. They do not require any hard copy of the documents, they have to upload the scanned copy, and their work is done. Therefore, currently, the investor’s attention in the stock market is due to the availability of cheaper Demat accounts.
Also, there is another discussion, for investors’ attention on the stock market, is the bull run. A bull run attracts plenty of investors and traders in the market, which leads to the investors learning trading techniques and then researching various stocks.
Tools To Collect The Data Of Attention Stocks
Tools like google trends are used to see the search trend of a particular stock. You can also predict the stock market movement by collecting the data of the number of people who have opened a demat account.
Generally, to search for breakout stocks or stocks with high volumes, traders can use special screeners. These screeners allow you to put filters as per your trading techniques, it may depend from trader to trader. The filters can tell you about the highest volume traded stock on the exchange.
Moreover, if you know the specific attention stock then, you can check the volume and the percentage of delivery trade from the National Stock Exchange’s (NSE) website.
Brokers Have The Most Important Tool To Predict The Stock Market- Data From The Order Book.
The biggest advantage of this is with the new-age brokers. The new-age brokers, popularly known as discount brokers, provide an easy online trading procedure, which attracts more and more investments in attention stocks. You can use the trader app for online trading.
Discount brokers now have all the data ready with them, which informs them about the increment of the volume in a particular stock.
Tracking investors’ attention to predict the stock market plays an important role in affecting the stock market prices. The brokers have all the data that they can mine to further churn profits for themselves, and their clients. Moreover, even the data from social media can be mined and processed to predict a particular stock movement.
Trading in the stock market is not an easy task. You may have to track a lot of data points, along with the world news. However, to gain regular profits you can choose one technique and master it. Being consistent in the stock market can help you create wealth in the long term.