{"id":66135,"date":"2023-02-01T15:26:31","date_gmt":"2023-02-01T20:26:31","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=66135"},"modified":"2023-02-01T15:26:31","modified_gmt":"2023-02-01T20:26:31","slug":"newsbeat-jr-romero-chatgpt-trading-tips","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2023\/02\/01\/newsbeat-jr-romero-chatgpt-trading-tips\/","title":{"rendered":"Trading Tips from ChatGPT: Are They Awful?"},"content":{"rendered":"<p><iframe title=\"YouTube video player\" src=\"https:\/\/www.youtube.com\/embed\/zoKJPIKGWxM\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p><span style=\"font-weight: 400;\">Do you know how long it took big tech and social media companies to reach 1 million users?<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"><strong>Netflix<\/strong>: 3.5 years<\/span><\/li>\n<li><span style=\"font-weight: 400;\"><strong>Airbnb<\/strong>: 2.5 years<\/span><\/li>\n<li><span style=\"font-weight: 400;\"><strong>Twitter<\/strong>: 2 years<\/span><\/li>\n<li><span style=\"font-weight: 400;\"><strong>Facebook<\/strong>: 10 months<\/span><\/li>\n<li><span style=\"font-weight: 400;\"><strong>Spotify<\/strong>: 5 months<\/span><\/li>\n<li><span style=\"font-weight: 400;\"><strong>Instagram<\/strong>: 2.5 months<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">But do you know how long it took OpenAI\u2019s ChatGPT app to get its first 1 millon users?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">5 days!<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Artificial Intelligence is on everyone\u2019s minds. People are using AI for things like high school assignments, college papers, virtual receptionists, and customer service.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Buzzfeed is even replacing journalists with AI.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As traders, we must ask ourselves can we trade with ChatGPT?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So we asked ChatGPT a query about trading::<\/span><\/p>\n<p><strong>\u201cGive me 7 tips for stock trading that I can't find in mainstream books, articles, or videos. Tell me what the best pros do and be very specific.\u201d<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">Now let\u2019s rate ChatGPT\u2019s answers!<\/span><\/p>\n<h3><strong>ChatGPT Trading Tip #1:\u00a0<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Develop a solid risk management strategy. This includes setting stop-losses, diversifying your portfolio, and having a plan for both short-term and long-term investments.<\/span><\/p>\n<p><strong>My Score: 6\/10\u00a0<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">Solid risk management is one of the most important elements of trading.\u00a0<\/span><\/p>\n<h3><strong>ChatGPT Trading Tip #2:\u00a0<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Utilize fundamental analysis in addition to technical analysis. While technical analysis looks at charts and past price movements to predict future trends, fundamental analysis examines a company's financial and economic fundamentals to assess its true value.<\/span><\/p>\n<p><strong>My Score: 1\/10<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">The best way to go out of business as a day trader is to worry about fundamentals and technicals.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is one of the worst tips I\u2019ve ever gotten from a robot.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As a day trader, I am looking at technical signals and price action to determine my buy and sell decisions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A stock may be attractive on fundamentals but ugly on technicals.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So if I listen to my fundamental bias, I might lose my shrt.\u00a0<\/span><\/p>\n<h3><strong>ChatGPT Trading Tip #3:\u00a0<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Keep an eye on global events and their potential impact on the markets. This could include political elections, natural disasters, or economic policy changes.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><strong>My Score:<\/strong> 6\/10: Tape bombs hit the market almost every day. It is very important to understand\u00a0 the potential effect.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">What ChatGPT misses is that a good trader understands the relationship between different possible events and macroeconomic indicators, and how those can possibly affect the equity markets.<\/span><\/p>\n<h3><strong>ChatGPT Trading Tip #4:\u00a0<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Take advantage of options trading. Options trading can provide a way to hedge against potential losses in your portfolio, as well as offer additional income through selling options.<\/span><\/p>\n<p><strong>My Score: 6\/10<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">A really fast way to lose a lot of money is to be a beginner trader.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">An even faster way to lose a lot of money is to be a beginner options trader.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Options trading can be a very helpful vehicle in terms of hedging trades and portfolios, and the selling of options or options right can be a profitable source of income.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It is also something that requires education, skill, and proper risk management.<\/span><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So I'll give it a six out of ten.<\/span><\/p>\n<h3><strong>ChatGPT Trading Tip #5:\u00a0<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Consider the use of algorithmic trading. Algorithmic trading uses computer programs to make trades based on a set of rules and conditions, which can help remove emotional biases from the trading process.<\/span><\/p>\n<p><strong>My Score: 2\/10<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">Oh boy. I feel a rant coming.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">I've worked with a lot of algorithmic traders. Do you know who loses most to algorithmic traders?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s other algorithmic traders.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So if you think you're gonna write an algo and go toe-to-toe with Citadel, I have a bridge in Brooklyn to sell you.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Algorithmic trading can be very helpful if you have the resources, the bandwidth, and the computing power to do it properly.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Then there\u2019s whole idea of removing emotional biases from trading.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To some extent, you should remove biases from trading.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This idea that traders can just write a program that will trade their idea without their emotions is nonsense.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You're always going to be emotional. You're always going to have emotions.<\/span><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You have to get over that.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You have to embrace the fact that you are an emotional being.<\/span><\/p>\n<h3><strong>ChatGPT Trading Tip #6:\u00a0<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Don't be afraid to ask for help. Many successful traders have mentors or belong to trading groups where they can share ideas and insights.<\/span><\/p>\n<p><strong>My Score: 10\/10<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">\u201cI can succeed at trading without any help,\u201d said no successful trader ever.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The idea that you can be a lone wolf and never get any help is is preposterous. It's about as easy as launching yourself to the moon.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It's just not going to happen.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is ChatGPT\u2019s best tip by far.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You need help. You need mentorship. You need an accountability partner. You need someone to help you figure out a strategy that works. You must understand risk management, technical analysis, and the craft of trading.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It takes a team.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">I almost said \u201cit takes a village\u201d but I stopped just short of that!<\/span><\/p>\n<h3><strong>ChatGPT Trading Tip #7:\u00a0<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Continuously educate yourself. The market and economy are constantly changing, so it's important to stay up-to-date on new developments and strategies in the trading world.<\/span><\/p>\n<p><strong>My Score: 8\/10<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">This is a good one. It\u2019s funny. There's an interesting duality here.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The fundamentals of markets never change.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">They were the same 100 years ago when the fathers of technical analysis were writing their books.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But every day you wake up and the market has a different personality<\/span><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The dynamics of the market are constantly changing.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Price action is constantly changing.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So, it is one of those paradoxes where the fundamentals of technical analysis never change and you never see anything new.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">On the other hand, everything constantly changes, as far as how they move.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The most important thing I would tell a beginner trader is to stay up-to-date with developing strategies in the trading world.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Understand what's moving certain markets. Understand the personality of the market you're trading.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That would be the first thing.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And a big part of your continuing education is to practice the virtues that got you there to begin with.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That would be discipline, risk management, and conscientiousness.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Because those are the things you need to practice for the rest of your career.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You must extol those virtues and manifest them every day.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So my final thoughts on ChatGPT?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s awesome at plagiarizing 10th grade term papers on Catcher in the Rye, and they may be good virtual receptionists.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">They may even help you cheat on that take-home trigonometry quiz.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But they are absolutely terrible for trading advice.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You will get zero value.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0<\/span><span style=\"font-weight: 400;\">I\u2019m on team people for life.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Do you know how long it took big tech and social media companies to reach 1 million users? Netflix: 3.5 years Airbnb: 2.5 years Twitter: 2 years Facebook: 10 months Spotify: 5 months Instagram: 2.5 months But do you know how long it took OpenAI\u2019s ChatGPT app to get its first 1 millon users? 5 days! Artificial Intelligence is on everyone\u2019s minds. People are using AI for things like high school assignments, college papers, virtual receptionists, and customer service. Buzzfeed is even replacing journalists with AI. As traders, we must ask ourselves can we trade with ChatGPT? So we asked ChatGPT a query about trading:: \u201cGive me 7 tips for stock trading that I can&#8217;t find in mainstream books, articles, or videos. Tell me what the best pros do and be very specific.\u201d Now let\u2019s rate ChatGPT\u2019s answers! ChatGPT Trading Tip #1:\u00a0 Develop a solid risk management strategy. This includes setting stop-losses, diversifying your portfolio, and having a plan for both short-term and long-term investments. My Score: 6\/10\u00a0 Solid risk management is one of the most important elements of trading.\u00a0 ChatGPT Trading Tip #2:\u00a0 Utilize fundamental analysis in addition to technical analysis. While technical analysis looks at charts and past price movements to predict future trends, fundamental analysis examines a company&#8217;s financial and economic fundamentals to assess its true value. My Score: 1\/10 The best way to go out of business as a day trader is to worry about fundamentals and technicals. This is one of the worst tips I\u2019ve ever gotten from a robot.\u00a0 As a day trader, I am looking at technical signals and price action to determine my buy and sell decisions. A stock may be attractive on fundamentals but ugly on technicals.\u00a0 So if I listen to my fundamental bias, I might lose my shrt.\u00a0 ChatGPT Trading Tip #3:\u00a0 Keep an eye on global events and their potential impact on the markets. This could include political elections, natural disasters, or economic policy changes. My Score: 6\/10: Tape bombs hit the market almost every day. It is very important to understand\u00a0 the potential effect. What ChatGPT misses is that a good trader understands the relationship between different possible events and macroeconomic indicators, and how those can possibly affect the equity markets. ChatGPT Trading Tip #4:\u00a0 Take advantage of options trading. Options trading can provide a way to hedge against potential losses in your portfolio, as well as offer additional income through selling options. My Score: 6\/10 A really fast way to lose a lot of money is to be a beginner trader.\u00a0 An even faster way to lose a lot of money is to be a beginner options trader. Options trading can be a very helpful vehicle in terms of hedging trades and portfolios, and the selling of options or options right can be a profitable source of income. It is also something that requires education, skill, and proper risk management.\u00a0 So I&#8217;ll give it a six out of ten. ChatGPT Trading Tip #5:\u00a0 Consider the use of algorithmic trading. Algorithmic trading uses computer programs to make trades based on a set of rules and conditions, which can help remove emotional biases from the trading process. My Score: 2\/10 Oh boy. I feel a rant coming. I&#8217;ve worked with a lot of algorithmic traders. Do you know who loses most to algorithmic traders? It\u2019s other algorithmic traders. So if you think you&#8217;re gonna write an algo and go toe-to-toe with Citadel, I have a bridge in Brooklyn to sell you.\u00a0 Algorithmic trading can be very helpful if you have the resources, the bandwidth, and the computing power to do it properly. Then there\u2019s whole idea of removing emotional biases from trading. To some extent, you should remove biases from trading. This idea that traders can just write a program that will trade their idea without their emotions is nonsense. You&#8217;re always going to be emotional. You&#8217;re always going to have emotions.\u00a0 You have to get over that. You have to embrace the fact that you are an emotional being. ChatGPT Trading Tip #6:\u00a0 Don&#8217;t be afraid to ask for help. Many successful traders have mentors or belong to trading groups where they can share ideas and insights. My Score: 10\/10 \u201cI can succeed at trading without any help,\u201d said no successful trader ever. The idea that you can be a lone wolf and never get any help is is preposterous. It&#8217;s about as easy as launching yourself to the moon. It&#8217;s just not going to happen. This is ChatGPT\u2019s best tip by far.\u00a0 You need help. You need mentorship. You need an accountability partner. You need someone to help you figure out a strategy that works. You must understand risk management, technical analysis, and the craft of trading. It takes a team. I almost said \u201cit takes a village\u201d but I stopped just short of that! ChatGPT Trading Tip #7:\u00a0 Continuously educate yourself. The market and economy are constantly changing, so it&#8217;s important to stay up-to-date on new developments and strategies in the trading world. My Score: 8\/10 This is a good one. It\u2019s funny. There&#8217;s an interesting duality here. The fundamentals of markets never change. They were the same 100 years ago when the fathers of technical analysis were writing their books. But every day you wake up and the market has a different personality\u00a0 The dynamics of the market are constantly changing.\u00a0 Price action is constantly changing. So, it is one of those paradoxes where the fundamentals of technical analysis never change and you never see anything new. On the other hand, everything constantly changes, as far as how they move. The most important thing I would tell a beginner trader is to stay up-to-date with developing strategies in the trading world. Understand what&#8217;s moving certain markets. Understand the personality of the market you&#8217;re trading. That would be the first thing. And a big part of your continuing education is to practice the virtues that got you there to begin with. That would be<\/p>\n","protected":false},"author":55,"featured_media":66139,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[749],"tags":[],"class_list":["post-66135","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-jr-romero"],"_links":{"self":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/66135","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/users\/55"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/comments?post=66135"}],"version-history":[{"count":3,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/66135\/revisions"}],"predecessor-version":[{"id":66143,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/66135\/revisions\/66143"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/66139"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=66135"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=66135"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=66135"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}