AI is the future of stock trading. | Teen Ink

AI is the future of stock trading.

May 9, 2023
By Anonymous

Imagine a world where you wake up to money flowing into your bank account. While you are eating breakfast, an AI system is doing daily stock market trades, knowing exactly which stocks to invest in to maximize your revenue. The first stock exchange opened up on May 17th, 1792, yet the evolution in decision-making has improved slightly. Although the stock market has historically been known for its sporadicalness, the new implementation of AI Learning and understanding of visual patterns can help determine the short-term future of the market. 


With the assistance of AI technology, algorithms can analyze market tendencies, collect real-time data, and calculate predictions about the movement of stock prices. As ample amounts of data become more readily available, machine learning algorithms can be used to identify patterns and correlations in historical prices that may be indicative of future price movements. According to the Quantalis Report, "The use of AI in the stock market has the potential to greatly improve the accuracy of stock price predictions, which can lead to higher profits for traders." This information can be used to make informed decisions about which stocks to buy or sell. Based on recent events that occur in the market, along with market evaluation and earning reports, AI chooses the best stocks to buy for the most revenue. 


AI learning to analyze the stock market can also help traders make better investment decisions. With the help of machine learning algorithms, traders can get an in-depth understanding of the market and the factors that drive stock prices. This can help them identify stocks that are undervalued or overvalued, and make investment decisions accordingly. Additionally, AI technology can help traders avoid making impulsive decisions by providing them with real-time data and insights about market trends and movements. 


In the coming years, especially with the introduction of software like ChatGPT, AI will take control of large data analytics. Business FIU states, "AI algorithms are designed to analyze vast amounts of data, including news articles, financial reports, and market trends, to make predictions about stock prices." 

Not only does AI learning allow investors to make informed decisions on the stock market, but it also reduces tendencies to impulsively buy stocks, therefore increasing profits in the long run.


Although historians would point out that the stock market's volatility would make the prediction of it extremely difficult, the new implementation of AI learning could understand visual patterns and trends to gauge the trajectory of the stock market. With the help of machine learning algorithms, AI technology can analyze large amounts of data and make predictions about future stock prices. This can help traders make better decisions and generate more profits from their investments. However, AI technology can never eliminate the unpredictability of the stock market, and traders will always need to exercise caution and make investment decisions based on their judgment. As the NY Times illustrates “It's unavoidable that A.I. will have a place in our future and change the way we live and work.”

 

 

 

 

 


Mishra, S. (n.d.). Artificial intelligence in the stock market: how did it happen? FIU Business. Retrieved February 15, 2023, from business.fiu.edu/graduate/insights/artificial-intelligence-in-the-stock-market.cfm


KRAUSE, R. (2023, February 13). Artificial Intelligence Stocks To Buy And Watch Amid Rising AI Competition. Investor's Business Daily. Retrieved February 15, 2023, from investors.com/news/technology/artificial-intelligence-stocks/


Why Artificial Intelligence Will Never Beat the Stock Market. (n.d.). Traders Magazine. Retrieved February 15, 2023, from tradersmagazine.com/departments/equities/why-artificial-intelligence-will-never-beat-the-stock-market/


AI in Stock Market: Predicting the Ups and Downs. (2022, July 7). DataToBiz. Retrieved February 15, 2023, from datatobiz.com/blog/ai-in-stock-market/


Predicting Stock Prices Using Machine Learning - neptune.ai. (n.d.). Neptune.ai. Retrieved February 15, 2023, from neptune.ai/blog/predicting-stock-prices-using-machine-learning


Roose, K. (2023, February 3). How ChatGPT Kicked Off an A.I. Arms Race. The New York Times. Retrieved February 15, 2023, from nytimes.com/2023/02/03/technology/chatgpt-openai-artificial-intelligence.html

 

Quantilus:quantilus.com/predicting-stock-market-using-ai/#:~:text=AI%20technology%20has%20advanced%20to,predictions%20about%20future%20stock%20prices.


Traders Magazine: tradersmagazine.com/departments/equities/why-artificial-intelligence-will-never-beat-the-stock-market/


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