Unleashing the Power of AI for Intelligent Investments: Revolutionizing Stock Market Trading

Abstract

The applications of artificial intelligence (AI) in finance and investing are discussed in this chapter, with a focus on stock market trading. For many years, investors have chosen stocks for trading and investment purposes by doing manual research and using their instincts. Historically, traders have chosen stocks by hand and using their intuition. Fundamental analysis, which involves examining and dissecting a company's financial statements, management, industry, and competitive landscape to ascertain its intrinsic worth, was a common tool used by stock pickers. Others employed technical analysis, which is examining historical volume and price data to spot trends and patterns. AI makes a variety of tasks easier, including as risk management, portfolio optimization, stock selection, market prediction, and automated trade execution. It is powered by data analysis and rules-based algorithms. It also highlights how AI has the ability to democratize access to wealth creation in the stock market, benefiting both experienced investors and novices looking for better trading results.