• With its ability to process vast amounts of information very quickly, AI can supercharge trading by providing a deeper understanding of market conditions.
  • Game-changing AI-powered platforms and tools can help retail investors leverage real-time data for better decisions and portfolio management
  • Industry Chain Analysis offered by moomoo provides a helicopter view of what’s happening across industries and companies linked via supply chains, enabling investors to optimise portfolios

 

Special Report: Stock market fortunes tend to favour the best resourced in terms of talent, time and high-powered tools to sort valuable information from the chatter.

Now AI is making the playing field flatter than ever, turning the tech into an essential piece of kit for those trading at home instead of hedge funds.

It’s giving retail investors the superpower once held only by big firms to quickly reallocate assets to sectors or stocks expected to perform better, optimising the portfolio for anticipated market conditions.

Roel van der Weijst, founder of QuantAI Trading said AI had actually been around for a while before ChatGPT brought it into mainstream awareness.

“AI was driving the trading market before most traders even knew about it. AI makes markets less volatile by understanding value better,” van der Weijst said. “It therefore also stabilises the economy. The lower VIX (volatility index), despite there being a war in Europe and the Middle East right now, is partially due to AI.”

Van der Weijst said much more significant developments were on the way, with AI’s capabilities to improve risk management and diversification improving all the time.

“It’s just beginning and the developments are accelerating very quickly because people have just started to see the potential. This decade, the changes will be immense due to new applications of AI and due to the development in AI,” he said.

 

Eyeballing opportunities

There are several AI-powered tools investors can embrace to avoid being left behind in the tech’s evolution.

eToro offers the Copy Trader feature which, as the name indicates, enables users to automatically copy trades from experienced investors. It does this by employing algorithms that help identify top-performing traders and portfolios.

CMC Markets also integrates AI technologies to enhance investors’ market analysis, but gives traders control over their strategies, rather than a full automation platform,  to provide an analytical and data-driven approach to trading.

Trading platform moomoo harnesses AI’s superpower to detect patterns in historical data and predict potential price changes.

Its Industry Chain Analysis tool rapidly processes data to identify industries and companies linked via supply chains and, using AI, reallocate assets to sectors or stocks expected to perform better under changing market conditions.

Chief commercial officer at moomoo Australia Michael McCarthy said Industry Chain Analysis could give a bird’s eye view of what’s happening.

 

 

“What it does is allow investors to select a particular industry sector they would like to trace, then provides guidance on affected businesses,” McCarthy said. “This enables investors to pinpoint which companies might benefit or suffer as a result of changing circumstances.

“For example, when the price of a key material like lithium or polysilicon rises, Industry Chain Analysis can trace its ripple effect across various industries, from electric vehicles to renewable energy, providing significant insight into investment opportunities.”

The tool also offers one of a trader’s most valuable commodities – speed. That is even when analysing trends across stocks, ETFs and other securities in Australia, the Hong Kong and US markets.

“Not only can you analyse an industry and identify hot or cold spots, you can also rapidly pinpoint which companies are exposed to the factors you’ve uncovered through your analysis,” McCarthy said.

 

 

Moomoo was developed especially for retail investors by Futu Holdings (NASDAQ: FUTU). A leader in using AI tools, Futu provides financial services in countries including the US, Singapore and Australia, and has a market cap of over $12.21 billion.

 

The views, information, or opinions expressed in the interviews in this article are solely those of the contributing author and do not represent the views of Stockhead.

Stockhead does not provide, endorse or otherwise assume responsibility for any financial product advice contained in this article.

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