When the most recent advances in AI first arrived on the scene, people got excited for different reasons.
For a student with an essay deadline, it was a chance to get a helping hand. The software developer now had someone to debug that tricky line of code.
And for the investor, a potentially exciting proposition: what if AI could help you spot investment opportunities?
Things are moving fast. The latest technology - the AI stock screener - has now emerged. Read on for our guide on how to use an AI-powered stock screener in 2024.
What Is an AI Stock Screener?
AI has begun to make waves in many industries, and the financial markets are no exception. AI works best when analyzing vast quantities of data, which humans can't do at the same efficiency level.
That is where it can add value in finance, which requires continued monitoring and data crunching of vast amounts of information, including stock price movements, company financial reports, and economic trends.
AI, in contrast, uses complex algorithms and machine learning capabilities to go through this same data in a way that has never been possible before.
With its ability to spot patterns, AI empowers you to find stocks or other financial investments that meet your specific needs.
It's adaptable, so it can improve monitoring the more you use it, refining predictions. It puts you in control. Every decision you make is made with confidence. From that viewpoint, it's efficient and effective.
How to Use AI Stock Screening
You'll need to work with a third-party provider with a proven stock screener. We have this tool as part of our Fintok technology suite.
To make the most of this type of tool, you'll first need to establish your financial goals and risk tolerance. An investment perfect for one person might be too risky for you.
You may also want to narrow the sorts of investments you prefer. This might include:
- Your preferred market sectors
- Performance metrics
- Financial ratios and other data
Narrowing your search will help you get the most from the AI tool. While AI analyzes data for you, you'll still need to understand how to interpret the outputs. So, you must get a sound understanding of the relevant markets before you invest your money.
You must have a firm grasp of the AI data in front of you. If you see a prediction, you must understand its logic.
For example, if the AI tool predicts a stock price increase, you want to ask yourself what factors led to that prediction. Do they align with your investment strategy? Remember, financial investments are more likely to succeed when you stay knowledgeable and do your research.
Keep in mind you might have to tweak the setup to get the output you need. AI tools are customizable, so make the most of that option.
What to Look for in an AI Stock Screener
When searching for an AI stock screener, certain features will make some tools stand out more than others. Here are some things to look for.
Real-Time Reports
Real-time information is crucial for any stock market investment. So, this is the first feature you should focus on in your search for an AI tool. You don't want something that gives you past or outdated information, which could lead to costly investment mistakes.
Choose a tool that offers the most comprehensive reports using real-time information and live market data. The more detailed the information, the more it will help you.
Choose a User-friendly Platform
When choosing a platform, opt for an intuitive AI stock screener that you can navigate easily.
Doing so ensures you won't be stuck trying to find vital information before making an investment decision. You'll feel more comfortable and confident when using the platform.
At Fintok, we offer a free trial so you can see how easy our platform is to use before you commit to it. Our platform has clean graphs, simple menus, and easy-to-understand layouts. That's why you'll find so many positive testimonials from customers.
Portfolio Tracker Integration
You want to look for a tool that integrates with your portfolio tracker. That way, you can make strategy decisions easily and quickly, with everything you need in one place.
You want the advantage of shadowing top institutional investments to make sound, long-term, intelligent choices with your money.
Plus, you'll get real-time insights into possible movements, allowing you to capitalize on market changes as early as possible and maximize your returns.
Using AI Stock Screeners to Improve Your Portfolio: Some Tips
Having an AI stock screener is only the first step in a sound investment strategy. You need to know how to get the most from it. Here are our top tips.
Look for Underperforming Stocks
If you want to improve your portfolio, you need to focus on finding underperforming stocks. AI can help you with this.
Use a stock screener to analyze data on your current portfolio and all the relevant financial indicators to help spot the weaker assets. The best way to do this is to customize your search.
For example, you could look for stocks with the poorest earnings growth data. Regularly reviewing underperforming stocks ensures you always have a high-performing portfolio.
Find Potential Investments
AI can help you find hidden gems that could make an excellent addition to your portfolio. It's often hard to spot these with manual analysis techniques.
AI can look for patterns that would otherwise be undetectable to most people. It can also locate model trends that could highlight the potential the average investor might not spot in past data.
You can use this to make smart investments that help boost the overall returns on your portfolio.
Improve Your Decision-Making
Use AI to shape your decision-making. For example, you can use AI to examine the market mood. That will help you spot shifts in investment decisions or warning signs on the financial horizon. You can also run an industry analysis before deciding to invest in that sector.
AI can examine broader data about the health and potential of any industry. Its predictive capabilities can also help you make long-term decisions about your portfolio.
Diversify Your Portfolio
Diversification is an important way to reduce your investment risks, and AI tools can help. This stock market analysis can measure the risk profile against different sectors, locations, or market caps to help you create a more balanced portfolio.
This means you don't have to worry about overexposure and massive potential losses you didn't spot manually when compiling your investment portfolio.
Timing Your Decisions
AI can help you improve the timing of your decisions and investments. Since it works with real-time data, it can help you make the most of your buying and selling activity to maximize opportunities and minimize losses.
These tools can spot trends and notify you faster than you can, which means you don't have to rely on manually monitoring the market 24/7 for signs.
Using Other Technology to Maximize Your Investments
While AI can be powerful, remember it's only one tool available to you. As a stock investor, it's important you use all technology to get the most from your investments.
You should still make the most of digital platforms and analytics tools. Humans can gain insights from data and information that AI may not.
Digital platforms also offer the chance to be part of a community, so you don't want to underestimate the power of this technology.
Getting expert support can shortcut your journey to investment mastery, and that's important when you are parting with real money. These communities can exchange ideas and best practices and help you get the most from AI.
Future Trends in AI and Investing
AI is evolving rapidly. Expect to see many advancements in how it interacts with the financial sector and investment. It could have a profound impact on the industry's future.
It's important to remember that machine learning is at the heart of this technology, so it will become more sophisticated at spotting subtle but critical trends that can shape investment decisions.
It's also likely to reach a point where it can present gathered information in a more accessible format. This would make it available to a wider section of the population who may not have investment knowledge or experience.
We may also see features like automated algorithms that will trade on your behalf, or AI assistants that will do the same thing.
This shift is exciting. It's easy to understand that embracing AI early is the best way to take advantage of this changing landscape.
Are You Ready for an AI Stock Screener?
It's time to take investment to the next level. With an AI stock screener, you have the chance to be an early adopter of this exciting technology.
You're in the perfect place to start. At Fintok, we've made investment simple and intuitive. And with the new introduction of our AI technology, it's about to get even better. Want to try it for yourself? Sign up for our free trial here.