Trading Platforms: let's celebrate AI with Fundamental Analysis

Artificial Intelligence has taken the world by storm and is going to change the world. With discoveries in science, tech, and healthcare, AI will offer greater advancements in the near future. AI has already changed large parts of financial markets - from Algo-trading to developing Quantitative trading strategies. Trading Platforms can become one of the leaders of this AI revolution, providing their customers with cutting edge AI financial research tools.

Attention Trading Platforms:  time to let your users experience the power of AI

Last year, some creative people decided that AI needs a day of celebration of its own, and established a new special day, Artificial Intelligence Appreciation Day, on July 16^th. We couldn’t agree more: AI definitely deserves appreciation as well as its own holiday. Since its early days, AI has contributed to science and technology, business and finance - and it also makes the lives of ordinary humans easier in many ways, like travel and education, to name a few.  

So on this AI Appreciation Day we’d like to celebrate the accomplishments of AI tech and raise awareness about its current and future use cases in human life - in all fields, including the part where it helps businesses and investors to make money. We’d like to appreciate and celebrate AI by showing its immense potential contribution to traders and investors in the capital markets.

AI in Financial Markets: FYI, it’s already there

AI and finance are made for each other: AI can skim through tons of data and easily find patterns that the human eye might not have recognized otherwise. Because finance is, for the most part, quantitative, it is easy to associate it with AI-enabled activities such as data processing, analyses, forecasting, etc. 

In fact, technology is already running large parts of the global markets: more than 60% percent of all trading activity today is run on technology; in some markets machine involvement in trading is above 90%. As part of this digital evolution of finance, AI is becoming incredibly influential. AI-powered analytics is already used to generate investment ideas and develop portfolios. 

“It’s all about the Fundamentals”, - says Robo-Buffett

Up until now, fundamental analysis has been reserved for humans. But innovative firms are pioneering the application of machine learning to fundamental investing, finding persistent patterns in company data. Deshe Analytics leverages AI and big data for better investment decisions. We all know that more profitable investments result in happier users, which leads to higher engagement and trading volumes. 

Our AI-based “fundamentals machine” is constantly scanning billions of data points, analyzing them and repackaging the insights into easy-to-read & understand reports (via natural language processing - NLP - tools). Thus, the AI has automated fundamental analysis and made it accessible to all.  

Let your users gain more trust, knowledge and money

We’ve learned that people now trust machines more than humans, including themselves, to manage their money and make financial decisions. Artificial Intelligence is perceived as a perfect oracle, whose words are based solely on facts and logic, as opposed to human analysts and other financial professionals, whose recommendations can be biased, limited by knowledge gaps and affected by emotions or prejudice. 

AI tools also help traders make more informed decisions, thus lowering the market’s barriers to entry. Traders no longer need to deeply analyze financial statements, revenue, P/E ratio, dividends paid, profit, loss, and other factors - AI saves them immense amounts of time and effort, doing all the heavy lifting for them, while humans can sit back and enjoy the results.  

AI analytical tools provide an endless source of relevant information users can trust; investors now expect Trading Platforms to incorporate these tools to make their life easier.  There is a lot to be gained in moving towards AI, for both closing the information gaps and supporting investment decisions. Clients who are able to use AI tools, trade more efficiently and as a result more frequently, directly benefiting Trading Platforms.

A crystal ball? No, AI investing recommendations!

Prediction is an integral part of the stock market in general and stock trading in specific. An investor performs analysis by understanding the historical data, noticing patterns and then analyzing the fundamentals to determine what will happen to the stock. Based on this forecast, investors make their buying/selling decisions. While some people are remarkably good at predicting the stock market, the risk of losing always prevails. Missing out on even the tiniest bit of information, or being momentarily swayed by emotion, can lead to horribly wrong outcomes (for your wallet). 

AI can help this, and it already is. As our AI analyst goes through gigabytes of data per second, there’s no distraction, and nothing relevant is left unnoticed. What's more, AI can process the latest news, blogs, and interviews to understand and predict how a stock will perform in a more accurate manner. In the end of this process, the AI genius is giving your users a straightforward investment recommendation: “Strong Buy”, “Buy”, “Hold” or “Sell”. Of course, humans are free to choose whether to act on AI’s suggestion or not, but there’s no doubt that our AI stock-prediction machine immensely improves the overall chances of your traders making the right investment decision.