Evaluation of a Supervised Learning Approach for Stock Market Operations

Stock markets play a fundamental role in the countries' economies, since they allow companies to raise funds for their investments in technology, expansion or infrastructure by selling stocks to the public. At the same time, stocks are, for the stockholders, important assets that can help to maintain or increase the investor's wealth for future use, like retirement, education, etc. On the other hand, stock prices are volatile and depend on several factors like companies' performances, economic activity, etc. Hence, investors and funds managers usually must constantly monitor the behavior of stock prices, in order to take correct trading decisions and to avoid excessive exposition to risky stocks. Data mining techniques have been widely proposed for stock market analysis in order to identify some patterns in price time series.