{"id":22939,"date":"2025-11-16T03:58:14","date_gmt":"2025-11-16T03:58:14","guid":{"rendered":"https:\/\/finderica.com\/?p=22939"},"modified":"2025-11-16T03:58:14","modified_gmt":"2025-11-16T03:58:14","slug":"can-chatgpt-really-make-winning-trades","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=22939","title":{"rendered":"Can ChatGPT Really Make Winning Trades?"},"content":{"rendered":"
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Editor\u2019s Note:<\/strong> In today\u2019s guest article, Bryan Bottarelli from Monument Traders Alliance shows you why trading with AI can be dangerous without a proper strategy.<\/p>\n

Bryan is one of the most accomplished traders I know, and I\u2019m always interested to hear what he has to say about the market.<\/p>\n

To learn more about the work Bryan and his team have been doing, check out their website<\/a>.<\/p>\n

\u2013 James Ogletree, Senior Managing Editor<\/p>\n

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Back in June 2025 \u2013 a Reddit user by the name of Nathan Smith posted an experiment.<\/p>\n

He asked ChatGPT to pick U.S. microcap stocks (stocks with a market cap below $300 million) for him.<\/p>\n

His goal?<\/p>\n

\u201cSee how a language model performs in picking small, under-covered stocks with a $100 budget.\u201d<\/p>\n

Over the first four weeks of his experiment \u2013 the account reportedly generated 24-25% return on the $100.<\/p>\n

A 24-25% return\u2026<\/p>\n

Sounds like a success, right?<\/p>\n

Not so fast.<\/p>\n

Soon after posting those results\u2026 Smith wrote: \u201cI no longer can get chat to provide insights. I\u2019m not sure what has changed but it is making up data and agent mode won\u2019t work anymore.\u201d<\/p>\n

Oops.<\/p>\n

It\u2019s a good reminder that leaving investing decisions solely up to AI is a BAD idea\u2026 for a number of reasons\u2026<\/p>\n

Problem No. 1. It\u2019s not hands-free<\/strong><\/h2>\n

While ChatGPT generated the stock picks, the user still had to monitor the trades every step of the way.<\/p>\n

He had to adjust if ChatGPT contradicted itself or recommended trades that were impossible.<\/p>\n

He also had to impose his own stop losses and manually place the orders.<\/p>\n

So although he was technically using ChatGPT to trade, it was more of an assistant than a \u201cdone-for-you\u201d trading service.<\/p>\n

Problem No. 2. He had no access to realtime data<\/strong><\/h2>\n

ChatGPT can\u2019t produce live price charts, track volume, see liquidity, or react fast enough to catalyst news.<\/p>\n

It\u2019s a language model\u2026 meaning it\u2019s picking stocks based on text patterns from user data, not financial reality.<\/p>\n

This sets it up for all sorts of false or outdated information that could lead to disastrous trades that crater your account.<\/p>\n

Problem No. 3. It encourages the worst mindset<\/strong><\/h2>\n

The idea that \u201cAI will trade for me\u201d is not a strategy.<\/p>\n

Proper trading involves rules, discipline, pattern recognition, position sizing, risk control \u2013 and above all \u2013 patience.<\/p>\n

Those are skills you can\u2019t outsource to a language model.<\/p>\n

You can only acquire them through getting in the trenches and learning how to trade using a proven system.<\/p>\n

Problem No. 4. No long-term track record<\/strong><\/h2>\n

Anyone can look smart with a small handful of winning trades over a short time period\u2026 in a rip-roaring bull market like we\u2019ve had since April.<\/p>\n

But could this ChatGPT trading model hold up during earnings season? A Fed meeting? A Black Swan event like COVID or the Housing Crisis?<\/p>\n

\"Logo\"<\/p>\n

YOUR ACTION PLAN<\/strong><\/h2>\n

While this redditor experiment is a fun example of how a robot could trade for you, NO ONE should see it as a viable long-term trading strategy.<\/p>\n

While AI agents like ChatGPT can help with stock research\u2026<\/p>\n

I\u2019ll always favor using realtime data, risk management, and proper timing for long-term trading success.<\/p>\n

But when you combine the research power of an AI agent with the expertise of an experienced trader\u2026 some real magic can happen.<\/p>\n

At Monument Traders Alliance, we\u2019re constantly using AI (the right way) to try to gain an edge for our readers.<\/p>\n

Click here<\/a> to learn more about our mission.<\/p>\n<\/p><\/div>\n