Can You Predict The Rise And Fall Of Stocks Using Machine Learning & Python ?
Can you predict if a stock price will increase or decrease using python and machine learning ?
First let me say it is extremely hard to try and predict the stock market. Even people with a good understanding of statistics and probabilities have a hard time doing this. Stock market prediction is the act of trying to determine the future value of a company stock or other financial instrument traded on an exchange. — Wikipedia
However with all of that being said, if you are able to successfully predict the price of a stock, you could gain an incredible amount of profit. I also want to make it very clear that I am not a finance advisor and take this article with a grain of salt.
In this article, I will attempt to predict if tomorrows close price for a stock will rise or fall below the previous trading day close price using a machine learning algorithm called a Decision Tree. Basically I want to know if tomorrows close price is going to be higher or lower than today's close price.
Let’s take a look at some pros and cons of using a decision tree classifier.
Decision Tree Pros:
- Simple to understand and to interpret
- List Requires little data preparation
