Stock Price Prediction for Investment Decision using Long Short-Term Memory

Abstract

This study utilizes Long Short-Term Memory (LSTM) networks to predict stock prices in the Nepal Stock Exchange (NEPSE), aiming to support investment decision-making. LSTM’s capability to model= temporal dependencies enables it to outperform traditional models in forecasting accuracy. The research uses historical data from insurance companies listed in NEPSE between 2020 and 2024. Evaluation metrics including MAE, MSE, and RMSE demonstrate the effectiveness of the LSTM model. The results are valuable for investors seeking to minimize risk and optimize returns through data-driven strategies. This research employs a Long Short-Term Memory (LSTM) model to predict stock prices in Nepal Stock Exchange (NEPSE). It aims to evaluate accuracy and effectiveness of LSTM in stock price forecasting. LSTM networks, known for their ability to capture complex temporal dependencies, are applied to analyze historical stock price trends. The findings suggest that LSTM models can significantly improve prediction accuracy and offer valuable insights for investors and financial analysts. This paper outlines the methodologies used, presents detailed results, and discusses the implications for investment decision-making.