How A.I. Can Make You More Money

By TradeSmith Research Team

I’d like to say that I’ve never received a parking ticket… or two… during my stays in some of the biggest cities of the world. (Clears throat.)

Until recently, parking tickets were a huge pain to dispute. If you’ve been through that, you know exactly what I mean.

You had to find a lawyer, pay hundreds of dollars, spend hours in court (tell the judge you’re sorry, and won’t do it again) — and maybe… maybe… you’d beat the ticket.

But here in our new era of technology, you can get immediate and inexpensive help to beat that parking ticket. And you won’t believe how.

From a lawyer who’s not even human. From an artificial intelligence (AI) attorney.

Sound crazy?

In 21 months, this AI lawyer got 160,000 parking tickets overturned in London and New York. I spent 16 years combined in both cities, and parking is definitely a pain.

That works out to 253 cases won every single day, on average.

That’s more than an entire “human” law firm could pull off. AI is parking us into a new era of superhuman speed and performance. That includes investing.

A Quantum Leap

Over the past 30 years, software in general has massively improved our ability to collect, analyze, and act on information.

A great software program can help you make smart business decisions, sign digital contracts, move money around, shop anywhere in the world, connect with friends, find travel deals, get directions, share pictures, talk to loved ones, and hail a cheap ride home. 

Health care, education, transportation, manufacturing, energy production, food manufacturing, retail, banking, you name it… software innovations mean we can do any of these things with much greater efficiency.

Software has given us quantum leaps in prosperity and efficiency. 

Just take Microsoft Excel, which at 38 years old, is ancient in the software realm. One person running an Excel spreadsheet can do the work of a million accountants from days past.

AI raises our capabilities to a new level. For example, AI helped doctors analyze more than 20 million oncology studies in just 10 minutes to save a patient’s life.

No wonder everyone is racing to incorporate AI.

That brings us back to stocks. Thanks to today’s smart technology, computers can analyze the thousands of publicly traded stocks almost instantly – to spotlight the one or two “needle in a haystack” plays that will deliver hefty profits.

Only a Few Stocks Actually Make You Money

According to research done by a renowned professor, out of 26,000 stocks ever listed in the history of the stock market, only 4% of them generated all of the market returns above treasury bills.

In other words, investors have a 96% chance of failing to beat government bonds.

Until recently, investors relied on the human brain to process and analyze the mountain of stock and financial data that now exists in our digital world. The human brain is a wonderful thing – it’s why we still exist – but when it comes to processing and analyzing millions of data points, our brains are laughably feeble compared to supercomputers.

Despite this, the vast majority of traders still enter the financial arena armed with just their brains.

And it usually doesn’t end well.

To find those 4% of stocks that beat bonds, you must screen millions of data points – and fast. That’s where supercomputers come in. My smart technology system sifts more than a million stock data points every night while everyone is asleep.

To find those rare moneymakers, you have to analyze the right factors the right way. That’s where quantitative analysis and AI come in. My Quantum Edge system performs a deep mathematical analysis of more than 120 fundamental and technical variables – variables that have proven to be the best predictors of higher share prices.

Many of these variables, by the way, would only be discoverable by the handful of people who manage the largest order flow information in the world. I was privileged to occupy that chair for 14 years earlier in my career, and it led directly to my whole quant stock-picking system and its proven success.

When I log on early in the morning, my computers have already done more data retrieval and analysis than probably an entire brokerage firm. My system assigns a Quantum Score to roughly 6,000 stocks every single day, a single number that lets me know if each of those stocks is an opportunity, a danger, or just not going anywhere.

With a few additional clicks of the mouse or taps of the keypad, I am left with those handful of stocks with the critical ingredients to generate profits. We are now fishing in a small pond full of exotic fish. From there, I can get back to the human brain (“genuine” intelligence?) to pick the best of the best – from what was already the best of the best.

Even under-the-radar stocks like e.l.f. Beauty (ELF). It’s a well-known company, but it doesn’t generate a lot of investor buzz. And once my technology identified this stock last year, it ripped as much as 102% higher.

Beating Wall Street at Its Own Game

Any person in any industry not using software to collect and analyze information today is hopelessly outpaced by those who do.

Huge investment banks now run this technology 24/7/365. These firms invested billions of dollars creating systems that give them critical market information first. And they have the analytical firepower to act on that information in a fraction of a second – before most people can even turn a computer on.

Wall Street uses this edge to win out against individual investors… to essentially “rig” the game against you. That means you’re already at a massive disadvantage before you buy your first stock.

It’s legal, but it’s wrong. It’s one reason I left the Wall Street game – not only to use it for myself but also make this same firepower available to individual investors. To level the playing field. To find folks a similar edge with data analytics, supercomputers, and proven analysis.

That’s the whole goal of my investing services, including my newest one, Quantum Edge Trader. We can meet and even beat Wall Street at its own game, using technology-enabled superpowers to make big, reliable, and safe stock market gains — over and over again.

If you’d like to learn more about my system – including my most recent stock recommendations – you can click here.

Talk soon,

Jason Bodner
Editor, Jason Bodner’s Power Trends