Wednesday, November 28, 2012

The Machine for Computer Automated Stock Picks


Super Computer

At present, there is a fictional network television show about a super computer that was created by a billionaire to predict the future events of terrorist activity. This wealthy character, Mr. Finch calls his computer "The Machine", which does more than just predict the next attack. It goes into detail and predicts minor murders of civilians using the "Neural" network of security cameras, motion sensors and mobile devices used in society. Mr. Finch then is ousted by his government client that wanted him to create the machine in the first place because he opposes their view of citizens being of minute un-importance. Thus his role in the TV show aspires to hiring someone to help him thwart civilians from being targeted as their numbers pop out of this machine.

So, how does this television show tie in with stocks and investment picks?

Enter, "The Machine for Computer Automated Stock Picks"

Pretty much like Mr. Finch's Machine, banks, money managers and other professional traders have used specialized software for picking winning trades. Often times the acquisition of software like this can cost thousands of dollars. These Automated Stock picking programs are also used by insurance companies and cost even more, so much more that they are priced way out of reach of everyday people to obtain. These networks these companies use are called "Artificial Neural Networks" and they do exist.

Simulating a system that is close to our brain, these artificial neural networks are made up of a complex "micro highway system" of artificial neurons, which can relay data that is available from our trading markets. Problems we encounter in an artificially intelligent world can be solved very fast and accurate by artificial intelligent systems. These systems can predict and handle individual stock or general market projections with ease. Many people do not realize that our very own brain is capable of handling a vast array of complex calculations but all too often a person's brain today only handles linear solutions to making predictions with investment decisions. That individual has to sit down with his calculations and spreadsheets and predict one by one which trades are sufficient for him. But, if you are like some who are gifted, (which are few) their brains are on a totally different spectrum of crunching data.

The Conventional, Stock Trading Problem

Companies that make trades using this technology create high volatility in the markets, thus making it hard on single individual investors to move in on a trade and get good positive results. By the time he or she makes their calculations and decides on a trade it's often all too late. Thus making his decision incorrect and also resulting in a loss on his or her investment order. So, the little guy trader resorts to making trades the common conventional way by investigating which stock(s) he wants and then buying those instruments low and later on in the future selling them high or low depending on the type of stock purchase he has made. This method of trading is painstakingly slow and has to weather many uncertainties and pitfalls of bad news we can often times encounter.

Advantage of Institutional Investors

Most of the time these elaborate software programs that are used by insurance companies and banks and other institutions do not take into account corporate earnings, rate of returns and other fundamental factors when making their picks. These programs use reliable short term technical parameters for good results to be presented to their professional investors. Big companies like banks and investment firms use this information for immediate information for their clients.

A Beautiful Solution For the small Trader

So what does a regular little guy do if he wants to compete with the big guys on Wall Street or trade like the big bank institutions? There is available to the public a very viable and reliable cost effective solution. Investment software programs that are very competitive to what these companies use if not better are now available to the general public. These programs use similar programming and sometimes the same algorithms to determine sudden movement in the markets and the direction in which these movements go. Some of these software programs are so robust they can evaluate the Forex markets and even Commodity price market movements at the same time. There are thousands of picks, trendlines, stockastics, moving averages, candlesticks, moving averages, on balance volume, relative strength indicators that can assist anyone in need of this information. That's very good news for us and it is available now.

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