How AI Aids Stock Market Traders?

Capital Markets CIO Outlook | Wednesday, October 28, 2020

The capability of AI to browse and extract insights from a number of varying sources makes it an ideal technology for stock market trading.     

FREMONT, CA: Artificial intelligence (AI) is increasingly being used across the industry verticals. This technology is also transforming the various aspects of the investment sphere. When it comes to stock market investments, AI has an effective role to play. The use of automation in stock trading is not new. However, the addition of AI technology can significantly enhance the capability of such automated trading machines. The technology can aid the investors with a better prediction as well as decision-making capabilities. With the evolution of stock market trading and the introduction of AI-driven investment practices, traders are certainly getting a better grip over their investments. Here are the primary ways in which AI can benefit traders involved with the stock market.

Unraveling Hidden Patterns

The performance of stocks depends on a number of factors that may encompass various industries, political decisions, economic factors, and others. It is beyond human capacity to successfully extract the insights from the wide range of varying factors and utilize them for stock trading. Alternatively, AI can evaluate the above factors as well as thousands of stocks in real-time to come up with insights that are critical to the dynamic environment of the stock market.

Predictive Capabilities

AI can analyze data from varying feeds such as social media, news headlines, blogs, and more to predict the upcoming variations in the stock market. Such a capability makes it possible for the traders to engage in predictive trading and thus have the edge over the conventional traders.

Dynamic Trading

The stock market is a highly volatile sector where decisions must be made quickly. AI-enabled automatic trading imparts significant advantages to the traders in the stock market. A slight edge in terms of speed of trading can result in significant profits to the traders.

Thus, AI is enabling the stock traders to utilize data insights from varying sources as well as lacing them with the speed factor, which is an essential aspect of stock market trading.

Artificial Intelligence