How Deep Learning Works In The Stock Market And How to Utilize It for Investment Decisions

To value the company or predict the stock return are major concerns for investors. Investors are trying to find as many indicators as possible that could effectively provide explanatory power for the stock performance, thus making favorable decisions. Researchers and analysts have employed various methods to arrive the estimates and techniques never stop advancing. Conventional statistical methods including many regression models have reached to their limitations. Machine learning methods like neural network stepped in to tackle the challenges and could be applied to more practical cases, where factors have nonlinear relationship with each other and assumptions about the statistical distribution are not available to know prior to constructing the models.