Supervised Learning Approaches for Sentiment Analysis in Stock Market Predictions

Abstract

Introduction: The exponential development of loads for business organizations and governments, compel scholars to accomplish their exploration in sentiment analysis. One of the most widely used social networking sites is Twitter, where users freely express their thoughts, opinions, and feelings. These tweets are recorded and examined in order to extract people's feelings on an extremist incident.

Objectives: The goal of this work is to use Machine Learning (ML) algorithms to create a classifier that can predict the polarity of a comment. Data mining, processing, and modelling are the three main responsibilities that comprise our work.

Methods: The NLTK dataset is used to build our model, and text mining procedures are used to generate and process the variables. Since our model is based on a supervised probabilistic machine learning algorithm (SPMLA), In order to categorize our tweets into good and negative attitudes, we tended to develop a classifier. In order to evaluate the model's performance, we then decide to do two trials, and we outperform earlier published research in terms of meticulousness. A part from above work we did comprehensive review examining the advancements in AI techniques for stock market forecasting This comprehensive review highlights the growing importance of artificial intelligence (AI) in financial markets while examining the advancements in AI techniques for stock market forecasting.

Results: Technical analysis and time series analysis are two examples of traditional forecasting techniques that frequently struggle to keep up with the intricacy and volatility of inventory markets. Promising solutions are offered by AI approaches such as deep learning models, reinforcement learning for trading strategies, natural language processing for sentiment analysis, and device learning algorithms.

Conclusions: The summary emphasizes the advantages and disadvantages of certain AI methods while highlighting how well they may replace conventional tactics. The vital role of statistics, going over various information sources, and preprocessing techniques that are essential for the correctness of AI models are explored. Evaluation metrics and benchmarks are provided to gauge the model's overall performance and provide information about the effectiveness of different AI techniques. Applications in the real world and case studies illustrate the reasonable advantages and challenging circumstances of AI in stock market forecasting. The evaluation closes by addressing present boundaries, such as the interpretability of records and models, and by investigating future trends and opportunities for innovation and multidisciplinary collaboration. AI methods could greatly enhance inventory marketplace forecasts, providing investors with new resources and altering market dynamics.