Abstract

Investors face the highest risks (compared to other form of financial investments) when they
invest in stock market. Their involvement in stock trading is mostly based on speculation
where their aim is more towards obtaining capital gains, rather than earning dividends as their
investment return over the long run. Many people have tried to predict the movement of share
prices and beat the market but no one can really accurately predict the movement of share
prices of any particular company listed in the stock exchange.

Our system will help the initial investor as well as the investor who has already invested to
check the price of the shares he/she has invested in. The system will provide a decision
making process with detailed descriptions for the investors who have lesser knowledge in the
field of stock marketing. The system gathers all the relevant data from the appropriate sources
which have the necessary data, analyze the prevailing situation of the economy and generate
optimal solutions to the investors like the time period to sell or buy the shares the investor has
of a particular company, the most appropriate period of time to improve the return on his
investment without any intermediaries. The system will analyze all the data from different
sources to draw conclusions in the rapidly changing economic environment and give optimum
solutions to the investors.

Predicting stock data with traditional time series analysis has proven to be difficult. An
artificial neural network may be more suitable for the task, primarily because no assumption
about a suitable mathematical model has to be made prior to forecasting. Neural networks offer
the ability to predict market directions more accurately than current techniques. Furthermore, a
neural network has the ability to extract useful information from large sets of data, which often
is required for a satisfying description of a financial time series.