They also consume it, and in the process are influenced by the sentiments, feelings, and opinions expressed by others. People interacting on social media generate emotional data by expressing their emotions and opinions via tweets, forum posts, and blogs. Like most other industries, the financial industry communicates by sharing information and data via the Internet and, eventually, through social media. By monitoring and analyzing data from social media sources-especially with regard to communication about stocks-it’s now possible to connect the dots between sentiment and market movements. The evolution of data intelligence technologies have given us the capability to process and analyze vast amounts of online data, which means we can now test Kostolany’s intuition that markets are highly impacted by emotional reactions. The Internet was just emerging from its infancy when Kostolany died in 1999. Renowned for his shrewd and astute mixture of psychology and his sensible knowledge of stocks and markets, Kostolany became one of the most successful investors of the 20th century. “Facts only account for 10% of the reactions on the stock market everything else is psychology.” André Kostolany, a stock market investor who made most of his fortune during the reconstruction of Europe after World War II, made this observation.

Stefan Nann is co-founder and CEO of data analytics company StockPulse, a data analytics company specializing in mining Emotional Data Intelligence. Institutional Distribution Intelligence.Non-Traditional Exchanges & New Markets.Directors’ and Officers’ Questionnaires.

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