Natural language processing (NLP) analyzes text to extract useful signals. In financial research, it turns language from news and other sources into sentiment scores that can support trading decisions. section 8.2 section 11.3.2
A practical NLP workflow can:
- Collect text through web crawlers or APIs. section 11.3.2
- Parse recurring sources and measure how their moods change over time. section 11.3.2
- Combine sentiment with other quantifiable signals in scorecards or supervised machine-learning datasets. section 11.3.2
Treat results cautiously: media sources change, historical comparisons become less reliable, and backtests can overfit. Past performance does not guarantee future results. section 11.3.2














