AI makes sense of complex trading data to help everyone become a smart investor

In a world that is increasingly data rich, the challenge of finding the information that is most useful for making sound decisions is harder than ever before. When it comes to share trading, having access to timely, accurate data and then applying experience and insight to that data to draw conclusions and act is complex and often beyond the reach of many potential investors.

Matthew Wilson, vice president and chief market strategist at moomoo, Australia's first AI-powered trading platform said investors are faced with piecemeal information coming at great velocity. But they also lack access to valuable data that can help them assess risk and make the best buy, sell and hold decisions.

“We know from recent ASX surveys that investors need access to critical live data, commentary and research. Sometimes they listen to social media or pick up a tip from a friend. But you need the right data at the right time to find help find the next opportunity," he said. 

Access to the right data is just the start. Finding a way to take large volumes of complex data and presenting it in a useful way that supports quick decision-making is critical. This is where institutional investors have an advantage over retail traders. Their scale means they can afford to buy the data feeds they need and have the expertise to use that data to make actionable decisions.

This is where a technology-led approach can make a massive difference. Machine learning and AI can sift through large volumes of data faster than humans can. By presenting that data in useful ways such as traffic light reports of market sentiment, graphical breakdown of company core financials and visualisation of capital flow, it’s possible to give traders better insight into what’s really happening in a market or with a specific stock.

“By filtering that information, a system can come up with 25 stocks that are active buy signals. Then you can dig down further and look at the trading chart patterns, who's been buying and who's been selling, and you can then filter that down even further," Wilson said.

"The data feeds we provide in moomoo include market data but also analysis of successful traders such as Warren Buffett and George Soros so anyone can follow their moves and learn from their expertise." 

Great decisions require access to data and the ability to make sense of that information. By presenting data in a usable form, it’s possible to reduce the risks of trading to deliver returns.

Wilson said getting access to data is challenging but making sense of it for decision-making is an even bigger hurdle to clear.

"By using AI, it’s possible to take the vast trove of data that comes from share trades, stock market reports and the advice of trusted experts to support investors, whether they are individuals growing their own wealth or large institutions and present it in a way that assists with decision making," he said.