Use of Artificial Intelligence in Stock Trading

Emon Kalyan Chowdhury

MPRA Paper from University Library of Munich, Germany

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.

Keywords: Artificial Intelligence; Stock; Finance; Trading; Forecasting (search for similar items in EconPapers)
JEL-codes: A1 A20 D7 F0 G0 (search for similar items in EconPapers)
Date: 2019-03-10, Revised 2019-04-18
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Published in Portfolio 22.1(2019): pp. 17-28

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