Ask ten people if the term "market sentiment" rings a bell and some might say that, indeed, it "kind of, sort of" seems familiar. Ask those who claim they know at least something about the term to explain what it actually means and... well, prepare to listen to a wide range of more or less accurate/fuzzy definitions. Fortunately for those who are about to watch this one minute explanation, market sentiment (also referred to as investor sentiment and/or investor attention) isn't exactly difficult to understand. This video explains why some market participants are bullish whereas others are bearish and how data pertaining to how investors "feel" about the market can ultimately help you make trading-related decisions. And, indeed, market sentiment data can be nothing short of vital for some traders. In fact, there are investors/traders who make decisions exclusively based on the sentiment data they have gathered and if it works for them... great. For others, it may very well only be a small component of their overall strategy but still, market sentiment-related knowledge is a tool worth having in your arsenal :)