Stock Market Strengthens Economy And Strengthened by AI to Minimize Risk

Abstract

Inflation is not a friend particularly when one tries to avoid wasting money for a few major outlays, such as buying a house or financing a comfortable retirement. In the world of finance, stock commerce is one of the essential activities for the growth and prosperity of the nation by giving a good chance to the commerce and the individuals to invest capital. Earlier, buying and selling of stocks were solely based on human conscience with luck or guessing and without understanding the background details of the stock. It was more kind of betting or gambling. The main aim of this proposed work is to make people understand the importance of investing in the share market for the opulence of a nation. Moreover, this proposed method reduces the risk of losing money in the stock market by hybridizing 2 of the most popular stock market prediction techniques i.e., Auto-Regressive Integrated Moving Average (ARIMA) and Long Short Term Memory (LSTM) with conditional weights determined using the logistic regression using Artificial Intelligence. This aids the decision making process like which stocks to buy/sell at what price at that particular instance. However, no proposed work was found directly indicating the approach that combines these monetary technical indicators with more than one machine learning algorithm. Yet, efficient results were observed as compared to some other proposed approaches as we merged more than one method to predict the same stock price.