Artificial Intelligence is a game changer for the stock market. If you have not explored AI for stock trading, you must look at it once to know what you are missing. To be competitive in any field, we take the help of technology – the same holds for investing – to become better at trading – use technology. With evolving technologies like AI, investors can access data at high speed and get more insights within a few seconds.
Table of Contents
AI & stock trading
Those not from a technology background may be surprised to know that today, we have AI stock management tools – AI can help you pick stocks and let you know when to exit them. How is it possible, you may wonder? AI-driven platforms can count numbers at a speed that a human cannot even imagine. They also help investors and traders make optimal decisions based on large masses of data.
As per statistics, traders around the world made $9.51 billion in profits in 2018. The number increased to $22.59 billion in 2020. By 2025, the profit from AI software is expected to grow to $118.6 billion.
How AI helps in stock trading?
You can use AI in stock trading in many ways. We have a variety of smart trading and analytical software that can help an individual for trading – give signals and make operations based on a trading strategy.
AI for stock trading involves different concepts. For every concept, first, the machine learns, and then, with time, it starts making predictions so traders can benefit from it. Many companies are offering AI-based investment advisory in India. You must explore them if you are looking to make more profits with little effort. Some of the benefits of AI in stock trading are:
- Pattern detection: The AI-based tool analyzes historical data and sees a recurrent pattern in stock price dynamics to identify the right strategy for a trader.
- Predictive sentiment-based trading: Artificial intelligence tools can incorporate data from social media and news into their analyses. Based on how the machine was trained, it will make decisions. It can provide a more extensive analysis than any conventional technical analysis a trader can manually perform.
- Speed trading: Traders know that every second matters in trading. When you are making big trades, a lot can change in a second. AI-based systems can save you time and money by facilitating instant actions and decisions.
Should you use AI for stock trading?
Stock trading and investing have elements that are beyond prediction and anyone’s control. However, traders struggling to make profits should definitely consider AI-based platforms for trading and investing. You can explore AI-based investment advisors in India as they come with affordable rates and higher success rates. Please note that AI trading software is not perfect – so if you go with them expecting a 100% success rate – you will be disappointed.