The stock market is a game of dynamic and precise decision-making, in which human decision-making processes combine with computer systems to determine ultimate success or profit or loss. This transaction, which was carried on by a limited number of people in a specific circle (business circle), expanded in a short period of time through the use of the Internet and the use of smart phones. In this, smart advisors were more profitable than smart investors and smart traders. As there are no restrictions on entry and exit from the market is possible at any time, the scope and depth of the market increases with the organization of investors. 14000 crore per month investment in just one year, it was able to reach the 20000 crore mark (2023-24) due to the participation and support of local investors from mutual funds. From this Sensex crossed 75 thousand; But with it the dependence on foreign investors decreased and the market became stable. 2047 i.e. India's independence centenary, Sensex is predicted to reach 10 lakhs. Nifty will cross 3 lakh and Indian capital market can be a superpower in global financial market. Artificial intelligence (AI-Artificial Intelligence) will now play an important role in this qualitative and numerical expansion, and it is important to understand its role.
Artificial Intelligence: New Horizons
As artificial intelligence moves beyond mere human motivation and complex algorithms to transform not just stock analysis, but the entire financial market, its importance, benefits, and limitations become important. Until now, buying and selling decision making was driven by historical data, technical analysis and ratios, and personal predictions. Now with the help of artificial intelligence, decisions will be made using huge data, financial news, emotional flows expressed through society and global flows. Artificial intelligence can make effective use of information warehouses. Second, it helps to understand the relationship between previously unknown variables and future market behavior. Artificial Intelligence based Algo Many complex and complex graphs will now be the basis for decision making. Stock trading combines speed and accuracy that is beyond human skill to profit by spotting opportunities in milliseconds. In stock trading, human factors or emotional factors often lead to wrong decisions; But emotionless, rule-based and numerical analysis-based decision-making is possible with the use of artificial intelligence.
Advantages and limitations
Artificial intelligence based share trading can provide various benefits to such people. Artificial intelligence can accurately use huge data to study future trends. This increases the chances of accuracy. Secondly, it is used to reduce risk and avoid losses, taking into account possible future declines. Companies which have low market value and can get huge profit from it. Artificial intelligence techniques are also useful in this regard. By managing risk and maximizing returns, this objective can be achieved. As the speed of transactions is faster than a bullet train, it helps increase liquidity in the market. A day's worth of transactions within an hour can significantly increase the overall tax revenue of the government. Economic democracy is established as technological innovation becomes available to everyone rather than being the monopoly of a limited few. But at the same time, it is important to note that any technique is a weapon in the afternoon. Artificial intelligence techniques are based on organizational information usage and there is a potential risk of misdirecting incorrect, inadequate, misleading data like Google app. This creates an immediate risk of error.
Processes using artificial intelligence are complex and illogical. This creates a risk of confusion. Artificial intelligence can conclude that global tension is the threat of world war and the cause of the Great Depression, and this can lead to huge fluctuations in the market. Even those who don't use artificial intelligence can do great damage. Its increased use may reduce the employment of expert advisors, stock analysts, fund managers. It underlines that the use of artificial intelligence requires not extraordinary intelligence, but general but human factor preference.
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