What’s the market mood?
Sentiment analysis is simply understanding the current mood of the market.
The market, like a person, is subject to different moods. Correctly reading the market’s mood is crucial in making profit. Now, if you misread a person’s mood you may end up accidentally feeling the effect of a person’s bad mood
In a similar way, if you are unaware of the market’s mood or sentiment, then you may end up with a losing trade.
Do you have a good grasp of market sentiment? Make sure you know what the market mood each and every single day that you are trading.