How AI Complements Stock Market Trading

By CIO Applications| Wednesday, January 22, 2020

AI allows the stock market traders to extract actionable insights from varying industries and gain an edge over their peers.

FREMONT, CA: Artificial intelligence (AI) is constantly being used across the industry verticals. The technology is also transforming a number of aspects in the investment landscape. When it comes to the stock market, AI has a key role to play. The incorporation of automation in stock trading is not new. However, the incorporation of AI technology can significantly improve the capability of such automated trading systems. The technology can assist the investors with a better prediction along with advanced decision-making capabilities. With the transformations in the stock market trading and the increased utilization of AI-driven investment practices, traders are certainly gaining a better grip over their investments. Here are some of the key ways in which AI can aid traders involved in the stock market.

Unleashing Hidden Connections

The performance of stocks relies on a number of factors that may encompass several industries, economic factors, political decisions, and others. It is beyond human reach to successfully extract the actionable insights from the wide range of disparate factors and use them for stock trading. Alternatively, AI can analyze the above factors as well as numerous stocks in real-time to come up with data that are critical to excel in the dynamic environment of the stock market.

AI-Driven Predictions

AI can evaluate data from varying feeds such as news headlines, blogs, social media, and more to predict the forthcoming variations in the stock market. Such a capability enables the traders to engage in predictive trading and thus gain an edge over the conventional traders.

Rapid Trading

The stock market is an extremely volatile sector where decisions must be made swiftly. AI-enabled automatic trading offers significant advantages to the traders engaged in the stock market. A fine edge in terms of speed of trading can result in considerable profits for the traders.

Thus, AI is allowing the stock traders to use data insights from varying sources as well as coupling them with the speed factor, which is a key aspect of stock market trading.