How can artificial intelligence be useful in stock trading?

Artificial intelligence is gradually finding its application in more and more areas of our lives.

Today, AI assists humans in tasks such as programming, translation, writing, data analysis, disease diagnosis, and even drug development.

Although most Artificial Intelligence systems refuse to provide direct trading recommendations, these programs can still be useful to traders.   

Stock trading has always been associated with a high degree of uncertainty. Traders are constantly seeking new tools to help them make more informed decisions and increase profitability.

How can AI be useful for a trader?

Big data analysis: AI can process massive amounts of data in real time, including news, financial reports, social media, and historical price data. This allows it to identify hidden patterns and trends that may be inaccessible to human analysis.

To conduct a full analysis, you will need to provide all the necessary data yourself, as AI cannot yet retrieve up-to-date information from the internet.

Forecasting: Based on analyzed data, AI can generate forecasts of future price movements. This allows for decisions about buying or selling assets before significant price changes occur.

Trading automation: Using artificial intelligence can help develop advisors and indicators based on specified parameters. However, it's recommended to seek assistance from AI developers who specialize in coding.

Personalized strategies: AI can develop a customized trading strategy based on each trader's specific goals and risk profile.

AI can effectively perform all the routine work of data analysis, calculations, and trade planning based on the results. This will significantly improve trading efficiency and reduce potential risks.

However, it's important to remember that AI is not a panacea and does not guarantee profitability. Traders should use AI as a tool to complement their own knowledge and experience.

In the following articles, we will try to use the help of intelligence in analyzing the attractiveness of company shares.