Machine Learning for Financial Forecasting

Abstract

Financial forecasting is a crucial aspect of modern financial management and investment decision-making. Traditional methods for financial forecasting often fall short in capturing the complexity and volatility of financial markets. Machine learning techniques have emerged as powerful tools to enhance the accuracy and efficiency of financial forecasting. This paper explores the application of machine learning in financial forecasting, examining its potential, challenges, and future prospects. In this paper, we explore how smart computers, called machine learning, can help us make better predictions about money and finance. You know how people try to guess what's going to happen with stocks, the economy, and all that money stuff? Well, the usual ways they do it have some problems. But now, with machine learning, we have a new tool that's really good at it. We looked at what others have already discovered and found that machine learning, especially fancy types like recurrent neural networks, is often better at predicting stuff like stock prices and currency exchange rates. These smart computer programs can learn from the past and tell us what might happen in the future.