Use of Artificial Intelligence in Stock Trading

Chowdhury, Emon Kalyan (2019): Use of Artificial Intelligence in Stock Trading. Published in: Portfolio , Vol. 1, No. 22 (30 April 2019): pp. 17-28.

Abstract

Artificial Intelligence (AI) implies the imitation of human intelligence in machines that are programed to think like humans and replicate their actions. Stock trading means buying and selling of shares of a particular company. AI-based stock trading refers to buying and selling of shares using technology which is programed to act like human being and ensures more accuracy and speed. AI-based apparatuses are already in use to forecast stock market trends. AI not only analyzes data on the stock market, but can also predict stock market trends, trading patterns of investors, stock brokers and the market. Well-renowned companies on Wall Street such as Goldman Sachs and Morgan Stanley have started to focus on narrow AI solutions through data mining, natural language processing, and using self-learning algorithms tools, which are capable of interacting faster than our daily use applications like the Google Assistant of Android, Alexa of Amazon and Siri of Apple. It also helps wealth management companies to keep a constant control on the stock market movement and rebalance the portfolios to ensure the target profit. At present, AI can reduce the work load and save time by performing multiple tasks and provide real-time suggestions but it cannot remove the human involvement entirely.

• Item Type: MPRA Paper
• Language: English
• Keywords: Artificial Intelligence; Stock; Finance; Trading; Forecasting
• Subjects: A - General Economics and Teaching > A1 - General Economics; A - General Economics and Teaching > A2 - Economic Education and Teaching of Economics > A20 - General; D - Microeconomics > D7 - Analysis of Collective Decision-Making; F - International Economics > F0 - General; G - Financial Economics > G0 - General

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