HomeBusinessThe AI Revolution In The Stock Trading Industry


The AI Revolution In The Stock Trading Industry

AI or Artificial intelligence and machine learning have become part and parcel of the daily lives of many as there are phone locks that open with your face recognition, air conditions work on their sensing the presence of people in the room, digital payments are automatized, you can pay your EMIs and SIPs without even remembering it, and there are many more to it. Likewise, AI is incorporated into stock trading as well. The new generation Stock Trading Platform is getting built with Artificial Intelligence to upgrade your stock trading experience.

How is AI reshaping stock trading? 

AI helps in stock trading by making stock trading more straightforward and more effortless. It enables you to check financial data, screen stocks, provide you with stock suggestions as per your portfolio or investment goals and choose the technical analysis tools, market-related insights, and more.

The advantages of AI in stock trading include –

1. Risk assessment:

With AI, risk assessment of your investments becomes easier. To assess the risk of investments or screen the best stock for your portfolio earlier, you had to go through a lot of information and data.

With AI, you can cut down the time and effort to a minimum as it will help you shortlist stocks/screen stocks as per your preferences. You can put your investment criteria, risk appetite, and investment budget, and then AI will screen the best stocks for you. Moreover, you can also filter the amount of information you need and leave the rest.

2. Stock recommendations and tips:

It is related to the point mentioned above. Once you enlist your investment criteria, you can get daily stock trading tips and recommendations with AI.

3. Automatic or Robo Trading:

There are Stock Trading Platforms that use AI to provide trading solutions. Robo Trading is where you have to enter your investment goals, and everything will be taken care of by the bot. Suppose you want to invest Rs. 25000 into stocks, expect a return of around 15% to 20%, and your risk appetite is medium. Then the Robo trading platform will find the stocks matching your criteria and invest accordingly, provided you allow the software to invest on its own.

4. Saves time and effort:

With AI, you can evaluate millions of data points within minutes, which otherwise would take hours of scrutiny. Then with AI, you can perform knowledge graphs, analyze big data and detect opportunities within a blink of an eye.

5. No emotional trading:

Emotional trading can also be avoided if you are using a Stock Trading Platform with AI for trading. Your trading process will depend on the underlying algorithms and logic and no emotions. Often, traders get emotional during volatile markets and make unwise decisions. This can be avoided using AI.

With AI on your stock trading app, you can enhance your trading experience to a different level, as AI is highly adaptive and can be combined with other technologies like big data or blockchain.

Related articles

Latest posts