Trading Strategies Based on Stock Message Board Information

Abstract

A trading strategy is a prescheduled plan designed to achieve a significant positive return by going long and/or short in markets. The strategy may be based upon the type of security, trading horizon, budget constrain, and/or purpose of the trade. In general, common trading strategies include, but are not limited to, mean reversion, short-term momentum, long-term trending, zero-cost arbitrage, event-driven, and continuous high-frequency trading. Because stock message boards are such unique, virtual places in which investors exchange opinions and comments, rich information circulated in these venues can help devise profitable trading strategies.