Artificial Intelligence can help make good Investment Decisions
We all know that finding the right trade that should be profitable takes time and effort and might be even after the research the trade will not turn out how you would like it. With technological advancement, we need a different set of tools and attributes to win in this changing time and that different set of rules in Artificial Intelligence.
PC: Pixabay.com
We are in the fast pacing world where we get to see new things daily and thus the old traditional way of research and investment might not help everyone to win. Previously only a few handfuls of people can get information about the company and those people are able to succeed in finding the right time to invest. But now with technological advancement, all the information about the company is available to everyone and thus the artificial intelligence can process, analyze the information and can give the signal about the investment decisions.
Just like in the software world, where Artificial Intelligence, Machine Learning, Data Science and Cloud is the future, similarly, we can say that Artificial Intelligence is the future in making that investment decision. Just to give you an example, as a human I can only analyze certain securities and read about them to come up with investment decisions but with AI and ML we can actually analyze thousands of securities and then analyze all of them. Even if there would have been 1000s humans in an office, they cannot evaluate all of them which AI and ML can do for us.
The human mind can process some financial ratios to come up with the decisions about the stock but with AI and ML, if given all the information you can get full proof decisions as to whether invest or not. I am not saying those signals will be 100 per cent correct but they will surely give you a lot of analytics that humans might miss. This can help us to make better decisions if not best.
We, humans, have an emotion with a stock like I really like to HODL certain stocks even though it is giving me negative returns and I will be biased towards getting into the trade for that stocks. But the AI and ML can help us to remain unbiased, if the stock is not doing good now, eliminate the risk as soon as possible. Also, Humans are slow learners but machines are not, if the trade goes wrong by any means they can correct themselves then and there.
One more thing I can think of is that we humans try to be in our comfort zone as much as possible without thinking of something which can become huge. Just like so many investors are not investing in Crypto, but given the earning potential you can earn huge in crypto rather than stocks and when given a choice to AI and ML they will surely choose crypto over and above stocks. I am not saying that with AI and ML, human contribution to finding the right trade will be zero but the combination of your research and AI/ML result based on analysing the data can help you win most of the time. This is happening in every field and not only in investing and that's why the AI and Ml is the future.
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This is very true, we humans are prone to fatigue and eventually get tired , we'll need to rest before we can function well again.
Al is here to help counter such issue where as human you can be able to focus your attention on other things All won't ,this won't totally eliminate the human mind which is a very powerful tool too.
Just as a machine is to help us make work more easier for human that way AL will help us in seeing things deeply, I.e providing more information to help us analyze where to invest our money. We will also be able to manage risk through this process.
Great blog.
Have a great day ahead and thanks for sharing this.
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Yes and that is where the AI can do very well. Humans are needed to make that AI better.
No doubt about that.
Al is the future of things.
Humans cannot process information as fast as machines.
AIs can monitor thousands of markets at the same time. They can also monitor and anticipate human actions and respond instantaneously to humans who attempt to engage in markets.
Just look at our little market on Hive-Engine. If you place a low bid on a token with a widespread, there is often a computer that outbids you within a second. This makes it next to impossible for people to accumulate coins with low bids.
Since AI has the ability to monitor and manipulate the actions of people, do you think that there will be any role for people in the markets of the future?
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Yes, AI will have limited knowledge and humans need to do some research to make that AI perfect.
Humans are the one's with limited knowledge and limited ability to research.
AI's will have the ability to monitor thousands of stats and reports while people are lucky to imbibe one or two reports a day.
There might be a limited role for people in the private equity firms that control the AIs, but there really won't be a role for individual investors in the AI future.
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AI holding the future, it will be a great if AI handling the analysis and information we need to know in Cryptocurrency world.
Yes there will be a time where every information will in our hands.
All I can say is when AI becomes more powerful than the human, we will be living in a completely different world! The machines will do all the processing power for us and we can then just make decisions!
That's absolutely true.