Isn’t it a tedious and mundane task to have to spend hours per day or hours per week analyzing various stocks, reading financial reports, comparing companies’ P/E ratios, and following the industry news to determine which stocks to buy and which stocks to sell that is why the stock analyzer is available?
That’s where computer software comes in handy.
Nowadays, there are computer software programs that are designed to analyze various stocks and make stock recommendations for you, based on cold, hard numbers, statistics, trends, patterns, and umpteen other variable data points. In a matter of seconds, minutes, or hours (depending on how many stocks you want the software to look at, and how much computing power your computer has). Stock analyzing software can perform some serious number crunching and make a bold “prediction”, which is more of an extrapolation, as to which stocks on the market are on the verge of experiencing a significant surge in price in a short time horizon. Can you blindly trust a computer program to issue a “hot stock alert”? Obviously, nobody, not a human being, and certainty not a machine can account for the geopolitical influences that govern the world economy. But you can leverage the resources of stock analyzing software to help you make sound investing decisions, based on mathematical probability.
Stock analyzing and trading software is not a new technology; in fact, banks and giant financial conglomerates use these kinds of programs all the time. They simply graph and trend analyzing algorithms that help investors and traders make decisions on what to buy and trade. You can find similar programs that are available to the consumer level public. Is it possible to stuff the brains of day traders and analyzers into a program to make trade decisions for us? It depends.
With today’s technology and artificial intelligence research, the possibilities to mimic professionals is not far fetched. However, most programs don’t go that far, but there are some out there that do in fact utilise a different array of algorithms so complex that it can decode and parse data into a decision. These programs take graphs and charts, financial trends and data, analyze them using algorithms or programmed decision habits most likely made by traders, and does its best to predict how the stock will do. Like weather prediction, it’s not an exact science, but by taking all kinds of data, the programs can predict movement based on what it has learned. See more.
Keep in mind, like any decision making process; there will be errors and lapses in judgment.
Do these programs work? Well, ultimately it comes down to the person deciding whether to buy or trade. The programs will only do what they do best, analyse and predict based on information they are given. The information can be wrong and other times, spot on. If the financial situations of giant companies and banking institutions are any indication, you can bet these programs are solid. Not perfect, as seen in times of recession, but the majority of the time, the economy is pretty stable. Having a stock analyzing program can be an excellent complement to a growing stock portfolio as well as a viable income stream. Just remember, ultimately, the decision to trade is yours.
Stock analyzer is particularly day trading, for that matter, hardly seem like passive sources of income, do they? If they were truly “passive”, then we wouldn’t have to do all this work! We should be making money on autopilot!