Emerging technological solutions are capable of finding stocks that will outperform in the market

Technology is making big changes in almost every sector. Innovations in artificial intelligence (AI) and machine learning are bringing a breakthrough in the financial industry. Ultimately, picking stocks for investment is not an escape from technology. Emerging technological solutions are capable of finding stocks that will make the most out of the investment.

Not just disruptive technologies, even everyday digital services serve the purpose of finding the correct stock. Fortunately, AI is driving a change. While humans still remain a big part of the trading equation, AI plays an increasingly significant role by doing analysis. According to a study by the UK research form Coalition, electronic trades account for almost 45% of revenues in cash equities trading. Digital disruption is making stock investments more transparent, accessible, inclusive and efficient. Remarkably, technology also flags the risky circumstance to the investors and regulators.

Everyday technology is the initial stock guide

When we plan to pick a prosperous stock, the first thing we do is to look up for the best in-growth companies online. That is where the everyday technology starts invading the stock market and does analysis for us. Even daily use technology can make us a smart and sophisticated stock picker. However, you need certain tactics to get good content out of search engines. Initially, start with browsing on informational sites to get a general overview of which industry is doing fine. Besides, service-selling sites or data forward sites will also provide tools for qualitative research, which will eventually lead you to take your own decisions. News sites are also a great place to start your search. These will help you finalise a sector. After picking an industry, the next step is to know which companies are doing well in particular and collect information of its past record-breaking stock price hikes and falls. If things feel right, you can believe where technology has led you to and invest in the company.

Disruptive technologies transform the way we pick stocks

Artificial intelligence

People are increasingly adopting AI algorithms to better their financial stand. AI and machine learning algorithms are fulfilling people's need at a lower cost and minimum time. Artificial intelligence technologies allow systems to learn from user interactions and patterns without explicitly programmed for it. Smart algorithms can identify new patterns of trading or system abuse in the capital market. These technologies also automate the decision-making process in the fast-paced financial trading environment, where the timing of the decision is extremely important. For example, an AI-powered stock picker analyzes, powered by IBM's artificial intelligence Watson is actively managing the stock portfolio. It works equivalent to 1,000 research analysts to identify stocks that could outperform the rest of the market.

Robo advisers

Robo-advisors are digital platforms that provide automated, algorithm-driven financial planning services with little to no human supervision. The technology is an alternative to traditional financial advisors and is usually a cheaper option. A typical robo-advisor collects information from clients about their financial situation and future goals through an online survey and uses the data to offer advice and automatically invest client assets.

Big data and analytics

We are well aware of the amount of data generated every day and how companies across the globe are using it to analyze and get an answer for their critical questions. The same goes for the finance sector. Financial markets generate massive amounts of data every second. Henceforth, leveraging big data analytics makes it possible to take the right decisions based on the ocean of data is analyzed. Such an analysis can better judge the stock performance by going through previous data history.