Trading Platforms help traders beat the market with AI equity research

Trading Platforms help traders beat the market with AI equity research

Most of us have heard about the statistic saying that 80% of retail traders lose money when trading the stock market. An interesting point about this statistic is that it is not based on geographical region, age, gender or intelligence: anyone in the world can be 80% sure they’ll be in the red eventually.

Actually, the proportion of losing traders can be even higher, depending on many factors. These statistics do not include the current bear market yet, which so far looks even worse: US amateur investors who jumped in when the lockdowns began have given back all of their gains by May 2022. If generally more than 75% of all day traders end up quitting within just two years, it would probably come as no surprise if the churn rate is even higher in the current state of the markets.

Trading Platforms don’t have to take high churn rate as a given: they can help their users trade better - thus increasing user satisfaction with the platform and growing their retention rates. The most innovative firms use critical moments in the markets - like the one we are experiencing now - to create opportunities for engagement and retention, thereby fulfilling all elements of the trader experience. 

Historically, customers have expected basics like quality service and fair pricing, but today’s customers have much higher expectations: proactive service, personalized interactions, connected experiences across digital channels etc. Trading Platforms provide their users with customer-specific resources such as education services, trading tools, premium news, and volatility alerts. This customer-centric approach defines customer experience, and this personalization ultimately drives Customer Lifetime Value.

However, the most important aspect of the user experience on a Trading Platform is their actual trading and its results. That’s where innovative AI equity research can be utilized to not only enhance users’ trading experiences, but more importantly to produce optimal trading results. Employing AI stock analysis for corporate financial statements can assist users trade better - and help Trading Platforms increase retention and engagement. 

To put this claim to the proof, let us list a few examples of stocks whose prices rose this year, beating the general market - just like our AI analyst said they would, based on their fundamentals. In other words, listed below are the stocks of the companies that published strong financial reports for Q4 2021 - and were rewarded by the markets. 

In this report, we bring you US companies with market cap above USD 1B, from all market sectors excluding Oil & Gas (for obvious reasons). The performance is for the date range of January 1st - July 5th.

1. IT, Telecom and Health Care:

Company Sector; Industry AI rating after Q421 Q4 21 Report AI rating after Q122 Q1 22 Report YTD Performance
Leidos Holdings, Inc. (LDOS) IT; IT Services BUY HOLD +8.94%
T-Mobile US, Inc. (TMUS) Communication Services; Wireless Telecom Services BUY HOLD +17.57%
Eli Lilly and Company (LLY)

Health Care; Pharmaceuticals

Bristol-Myers Squibb  (BMY) Health Care; Pharmaceuticals STRONG BUY HOLD +21.17%
Cigna Corp (CI) Health Care; Health Care Providers & Services STRONG BUY HOLD +11.49%

2. Financials, Consumer Staples, Utilities and Materials:

Company Sector; Industry AI rating after Q421 Q4 21 Report AI rating after Q122 Q1 22 Report YTD Performance
Cincinnati Financial Corp (CINF) Financials; Insurance STRONG BUY
Philip Morris International (PM) Consumer Staples; Tobacco BUY HOLD +1.41%
Archer-Daniels-Midland (ADM) Consumer Staples; Food Products BUY
Campbell Soup Company (CPB) Consumer Staples; Food Products BUY
Consolidated Edison, Inc. (ED) Utilities; Multi-Utilities BUY
CF Industries Holdings, Inc. (CF) Materials; Chemicals BUY STRONG BUY +20.49%
Corteva, Inc. (CTVA) Materials; Chemicals BUY HOLD +14.47%

Some of these companies have lost their lucrative "Strong Buy" or "Buy" ratings since Q4 2021 reports - whether because their financials deteriorated or their peers (similar companies in the industry) got relatively stronger. But there's no need to despair, as our AI constantly scans a world of investment opportunities: 44,000 stocks from all countries and all exchanges.

Trading Platforms can grant their users access to the results of this continuous process of fundamental analysis, so that their next trades are smarter, more effective, and of course - much more profitable.

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