Embrace the future of investing by utilizing artificial intelligence.


Copyright: investopedia.com – “How to Use Artificial Intelligence in Your Portfolio”


Artificial intelligence (AI) is the simulation of human intelligence by machines. This is accomplished by software that attempts to replicate a human process. While artificial intelligence can entail very sophisticated applications, such as OpenAI’s ChatGPT (which can converse with users) or autonomous driving applications, artificial intelligence encompasses a very wide range of applications. One term often associated with financial market artificial intelligence is algorithms, which refers to a set of programmed instructions that provides results from the data analyzed by the program. Artificial intelligence in investing and finance takes many forms, some of which are relatively straightforward.

Hedge funds and other trading operations utilize artificial intelligence at a very high level to, as an example, gain the slightest advantages in fast-moving markets. But artificial intelligence is also widely used in finance and investing because of its ability to process and analyze information from very large data sets. Further, artificial intelligence can be used to help choose stocks, make predictions on market movement, optimize portfolios, manage risk, obtain personalized investment advice, manage trade entry and exit strategies, and automatically build a customized portfolio that meets specific investor criteria like risk tolerances. We will discuss a variety of ways any investor can incorporate artificial intelligence into their investing.

How to Use Artificial Intelligence in Your Portfolio

Here are some ways regular investors can utilize artificial intelligence in their portfolios.

Stock Picking

All of the companies that trade on U.S. stock markets have many data points that investors can use to determine what stocks they want to buy or sell. Artificial intelligence allows investors to efficiently sort through this data to identify stocks that meet their criteria. Stock screeners are sophisticated tools that allow investors to filter stocks on criteria that can include fundamental and technical data points, such as accounting ratios, market capitalization, trading volume, and moving averages, to name just a few of the literally hundreds of data points available. If you’re looking to get started with a stock screener, consider learning how to use these platforms by starting with a one of the many free versions that are available, like ZACKS (NASDAQ).[…]

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