Influence of emotions in stock trading: how AI can be a solution to it?

Emotional beings that we are, humans, our emotions have a significant influence on our decision-making,when it comes to our finances the impact is to a great extent.Studies have shown that feelings like greed, hope , and fear can influence investors to make poor decisions that lead to financial losses.

Trading based on emotion magnifies the risk because you tend to take a narrow view of the situation. Whatever stock you are investing in, you need to be aware of its underlying principles and the corporate governance structure of the business.

Trading (purchasing and selling) securities with strong fundamentals is a smart way to increase your wealth. However, when you trade emotionally, you almost always have a tendency to overlook these crucial factors. For instance, when markets are in the midst of an exuberant bull run, there is widespread concern about losing out. If they don’t buy now, many investors believe they will not catch the bus. 

In the process, they frequently forget about important details of trade, you can find yourself placing bets on equities with poor fundamentals. This considerably increases the level of risk, and the likelihood of capital loss is high.

How then can we get over these emotional biases and choose investments more wisely?

With the rise of artificial intelligence (AI), there is now a way to overcome these emotional biases and make more informed investment decisions.

“They could effectively crunch millions upon millions of data points in real time and capture information that current statistical models couldn’t,” he told ITPro Today.

 Our FiBo AI bot  is on a never ending mission to do this for you, it can be useful in the stock market by analysing enormous volumes of data to spot patterns and trends. This enables investors to make more educated decisions based on factual information as opposed to subjective judgments.

By giving investors access to real-time information about market conditions and potential hazards, FIBO can also assist investors in managing their portfolios more successfully. As a result, investors may be better equipped to make decisions, FIBO also has a certain risk limit that you can put in it and it will atomically draw back your investment if it senses any danger. 

 In addition to ensuring that portfolios are maintained in a disciplined and consistent manner, this can help to reduce the influence of emotional biases on investing decisions.

All things considered,  FIBO has the potential to completely alter the way we make stock market investments. Investors can make better selections by utilizing the power of machine learning and data analytics by basing their decisions on factual analysis and facts rather than subjective emotions.

About Us

FibWave offers various services in the field of algo trading and analysis. FibWave aims to provide unique and unconventional strategies to beat the markets and its powerful proprietary algorithms for high-frequency trading through its trading bots. These algorithms are based on back-tested strategies and aim to provide traders with an edge in the market. Fibwave’s trading bots utilise powerful algorithms to predict future price directions of securities, offering traders valuable insights and potential trading opportunities. For More Details visit

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