In this article, we will discuss the differences between AI stock trading and human stock trading.
If computers can consistently outperform humans in stock trading, they are here to stay. With that said, AI brings different strengths and weaknesses to the table when it comes to trade stocks. The next few sections point out some key differences between AI and human trading.
AI Stock Trading and Human Stock Trading – The Differences
Your Algorithm Has The Advantage of No Emotion
When testing your stock trading algorithms, don‘t look towards times of market stability. Test your apps against the most volatile market periods in history and see if the unemotional AI can outperform humans.
Lack of emotion is an obvious advantage for AI-powered traders. Humans are notoriously bad at stock trading for the simple reason that their emotions get the better of them. Stocks plummet and they sell out of panic. Or, just as bad, a stock reaches new …