ChatGPT… it’s been all over the news and social media in the past few weeks.
But what exactly is it, and can it help you become an investing millionaire in 2023?
Can ChatGPT help you trade cryptos or stock investing?
To find out, we decided to put ChatGPT through its’ paces with a test run.
What is ChatGPT?
To be clear, ChatGPT isn’t any sort of tool specifically designed for trading and investing or even the finance world as such.
It’s not part of any investment courses.
ChatGPT is basically an AI chatbot that engages in conversational dialogue, similar to the automated chat services found on companies’ customer service websites.
In general, the responses and “conversations” normal chatbots engage in only really provide information that has been pre-set by the particular business and its support tech.
Tech research company, OpenAI created it. Their mission is to ensure artificial intelligence “benefits all of humanity”!
The initials GPT stand for Generative Pre-training Transformer. This is in relation to how the chatbot processes language.
The unique thing about ChatGPT is that it was “trained” using RLHF – or Reinforcement Learning From Human Feedback.
According to Investopedia, this training enabled ChatGPT to be capable of “challenging incorrect assumptions, answering follow-up questions, and admitting mistakes.”
While this certainly differentiates ChatGPT from other “standard” chatbots, ChatGPT is really a super sophisticated chat bot because it was let loose and allowed to go wild in the Internet!
Apparently, it had a great time and accumulated all the data it could up to the end of2021 and now has all that information in its bot brain.
Therefore, when you ask it something it dives into its virtually infinite bot brain and it gives you an answer or multiple answers and pretty quick too!
Will ChatGPT Be Of Any Use In The Finance World?
To answer this question, we experimented with some basic questions.
Firstly we asked ChatGPT:
“Any good ideas of good tech stocks to invest in?”
Within seconds it came back with:
“I recommend researching speaking to a financial advisor before making the investment decisions, additionally it’s important to diversify your portfolio and consider factors such as companies Financial Health, consider management, the industry Trends. Some technology companies that have performed well recently include…”
ChatGPT literally listed:
Apple, Amazon, Microsoft, Google parent company Alphabet, Facebook, NVIDIA the computer chip company, Salesforce, Shopify and Zoom.
This was pretty amazing, because as you may know many of these stocks have been on sale and we got in with most of them here at Investment Mastery!
However, it was interesting that it suggested Shopify, Salesforce and Zoom because they have not been performing well. Shopify and Zoom in particular are well down in stock value.
Yes, they have performed well in the past, but not right now, as at time of putting this question to ChatGPT.
In fact, this demonstrates that ChatGPT is a little behind the times, although admittedly it appears to have only amassed its entire library of world data to 2021.
As we know, assets move fast when trading investments!
So perhaps it can be forgiven in that sense as it is reacting to the information it has stored and apparently not updated.
But interestingly, it did go on to relay a standard financial disclaimer that all reputable wealth management companies (and indeed us) always make clear on our website and material – i.e. past performance is not indicative of futureresults okay interesting also it’s important to keep in mind that stock market is subject to risks and fluctuations and investing in any stocksalways carries risk/
So ChatGPT is basically protecting itself, and that is only right as imagine you acted on something based on its reply and then you lost all your money?
Well, you’d be suing OpenAI pretty quickly so naturally they are covering their backs well there, as you’d expect.
Not a bad start, then.
Next we asked:
“What I should consider when investing in tech stocks?”
As with our first question, ChatGPT replied in a similar way and repeated its information on considering financial health of a company, the management.
However, there was a little more information, a few more details, such as you want to look at the industry trends, competitive landscape, valuation and supported risk supported.
It then repeated the disclaimer.
But this again is a great starting point for someone to then go off and do their own research.
We then asked:
“What about technical stock analysis how would you do this?”
ChatGPT’s answer was:
“Technical stock analysis is a method of evaluating Securities by analysing statistics generated by market activities such as past prices and volume.”
It also mentioned common methods of technical analysis such as chart patterns and moving averages.
Then its disclaimer/warning, curiously adding that it’s important to note that technical analysis is not always accurate and should be used in conjunction with otherforms of analysis such as fundamental analysis.
We followed ChatGPT’s recommendation and asked:
“Tell me more about fundamental analysis”
Again, it’s almost instantaneous reply was pretty precise and accurate.
Of course, these are basic questions, but great generic answers.
Certainly useful for the newbie seeking instant replies digitally.
As our evolution continues to become reliant on and immersive with the Internet of Things (IoT), it is inevitable that AI, chatbots and other forms of advanced technology not yet available, will become the infrastructure of many societal activities.
That includes how the financial world operates and controls IoT/AI.
It will inevitably have a say in how technology such as ChatGPT will be allowed to be accessed and used by the citizens of the world.
But, to answer our own question…
Can You Use ChatGPT To Become A Millionaire?
In our opinion, no way. Notright now. It is far too early.
However, ChatGPT has certainly shown us what AI is capable of and there is no doubt it WILL play a big part in how we can trade and invest in the future.
So, it is definitely one to keep an eye on and even play around with.
To get prepared.
Make it part of your trading and investing education. We believe it can be a useful tool right now, especially if used in conjunction with the education we deliver at Investment Mastery.
It’s all we do, and we have the statistics to prove that our education and online trading courses really work!
You can find out by joining IM Insider for FREE with this easy subscription link here.
Here you can be introduced to a whole suite of educational tools, resources and forums that will help you start your journey to financial independence.