The Predictive Edge

The Predictive Edge

by Alejandro Lopez-Lira
Released July 2024
Publisher(s): Wiley
ISBN: 9781394242719

Read it now on the O’Reilly learning platform with a 10-day free trial.

O’Reilly members get unlimited access to books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.

Start your free trial

Book description

Use ChatGPT to improve your analysis of stock markets and securities

In The Predictive Edge: Outsmart the Market Using Generative AI and ChatGPT in Financial Forecasting, renowned AI and finance researcher Dr. Alejandro Lopez-Lira delivers an engaging and insightful new take on how to use large language models (LLMs) like ChatGPT to find new investment opportunities and make better trading decisions. In the book, you’ll learn how to interpret the outputs of LLMs to craft sounder trading strategies and incorporate market sentiment into your analyses of individual securities.

In addition to a complete and accessible explanation of how ChatGPT and other LLMs work, you’ll find:

  • Discussions of future trends in artificial intelligence and finance
  • Strategies for implementing new and soon-to-come AI tools into your investing strategies and processes
  • Techniques for analyzing market sentiment using ChatGPT and other AI tools

A can’t-miss playbook for taking advantage of the full potential of the latest AI advancements, The Predictive Edge is a fully to-date and exciting exploration of the intersection of tech and finance. It will earn a place on the bookshelves of individual and professional investors everywhere.

Table of contents

  1. Cover
  2. Table of Contents
  3. Title Page
  4. Copyright
  5. Dedication
  6. Preface
  7. Introduction
    1. What You Will Learn
    2. How This Book Is Structured
    3. Part I: Fundamentals
    4. Part II: ChatGPT and Stock Prediction
    5. Part III: Envisioning a Financial Future with AI
  8. PART I: Fundamentals
    1. CHAPTER 1: Understanding the Stock Market
      1. Stock Market Fundamentals
      2. Stock Trading
      3. Portfolio Management and Trading Strategies
      4. Summary
      5. Coming Up Next
      6. Check Your Understanding Questions
    2. CHAPTER 2: Understanding Artificial Intelligence
      1. What Is Artificial Intelligence?
      2. From Machine Learning to Deep Learning: The Rise of AI Models
      3. Summary
      4. Coming Up Next
      5. Check Your Understanding Questions
      6. Note
    3. CHAPTER 3: Large Language Models: A Game Changer
      1. What Is Natural Language Processing?
      2. Generative AI: The Art of Digital Creation
      3. Large Language Models
      4. Summary
      5. Coming Up Next
      6. Check Your Understanding Questions
    4. CHAPTER 4: Advanced Topics in LLMs
      1. Architectures Powering LLMs
      2. Improving LLMs
      3. The Landscape of LLMs
      4. Summary
      5. Coming Up Next
      6. Check Your Understanding Questions
  9. PART II: ChatGPT and Stock Prediction
    1. CHAPTER 5: What Is ChatGPT?
      1. Capabilities
      2. Limitations
      3. What Is a Prompt?
      4. ChatGPT in Business Applications
      5. Some Ethical Considerations When Using ChatGPT
      6. Summary
      7. Next Chapter Preview
      8. Check Your Understanding Questions
    2. CHAPTER 6: Can ChatGPT Forecast Stock Price Movements?
      1. Understanding the Process
      2. What We Found
      3. What We Learned
      4. Summary
      5. Coming Up Next
      6. Check Your Understanding Questions
    3. CHAPTER 7: Implementing a ChatGPT Trading Strategy: A Step‐by‐Step Guide
      1. Recap of ChatGPT and News Sentiment
      2. Basics of the Trading Strategy: Market‐Neutral Approach and Its Benefits
      3. Establishing an AI‐Informed Trading Strategy
      4. Developing the Strategy
      5. Backtesting the Strategy
      6. Implementing the Strategy
      7. Monitoring and Adjusting
      8. Ethical Considerations and Compliance
      9. Summary
      10. Coming Up Next
      11. Check Your Understanding Questions
    4. CHAPTER 8: ChatGPT in Action: Practical Applications
      1. Integration with Investment Strategies
      2. Risk Management: ChatGPT for Early Warnings and Mitigating Losses
      3. Integrating ChatGPT in Automated Trading Systems
      4. Summary
      5. Coming Up Next
      6. Check Your Understanding Questions
  10. PART III: Envisioning a Financial Future with AI
    1. CHAPTER 9: The Future of AI in Financial Forecasting
      1. Emerging AI Algorithms and Models
      2. New Sources of Data
      3. Personalization
      4. AI Regulatory and Implementation Challenges
      5. AI's Potential Effects on the Financial Industry
      6. Development of Interactive AI Interfaces
      7. Summary
      8. Coming Up Next
      9. Check Your Understanding Questions
    2. CHAPTER 10: How AI Is Shaping Our Economic Future
      1. What We Learned
      2. ChatGPT in Action: Practical Applications
      3. The Future of AI in Financial Forecasting
      4. The Prospects of AI in Finance
  11. APPENDIX: Check Your Understanding Answers
    1. Chapter 1
    2. Chapter 2
    3. Chapter 3
    4. Chapter 4
    5. Chapter 5
    6. Chapter 6
    7. Chapter 7
    8. Chapter 8
    9. Chapter 9
    10. Chapter 10
  12. References
  13. Acknowledgments
  14. About the Author
  15. Index
  16. End User License Agreement

Product information

  • Title: The Predictive Edge
  • Author(s): Alejandro Lopez-Lira
  • Release date: July 2024
  • Publisher(s): Wiley
  • ISBN: 9781394242719