Again in June 2025 – a Reddit person by the identify of Nathan Smith posted an experiment.
He requested ChatGPT to select U.S. microcap shares (shares with a market cap under $300 million) for him.
His objective?
“See how a language mannequin performs in selecting small, under-covered shares with a $100 funds.”
Over the primary 4 weeks of his experiment – the account reportedly generated 24-25% return on the $100.
A 24-25% return…
Appears like successful, proper?
Not so quick.
Quickly after posting these outcomes… Smith wrote: “I not can get chat to offer insights. I’m unsure what has modified however it’s making up information and agent mode received’t work anymore.”
Oops.
It’s a great reminder that leaving investing choices solely as much as AI is a BAD thought… for a lot of causes…
Downside No. 1. It’s not hands-free
Whereas ChatGPT generated the inventory picks, the person nonetheless needed to monitor the trades each step of the way in which.
He needed to regulate if ChatGPT contradicted itself or really helpful trades that had been unimaginable.
He additionally needed to impose his personal cease losses and manually place the orders.
So though he was technically utilizing ChatGPT to commerce, it was extra of an assistant than a “done-for-you” buying and selling service.
Downside No. 2. He had no entry to realtime information
ChatGPT can’t produce reside worth charts, monitor quantity, see liquidity, or react quick sufficient to catalyst information.
It’s a language mannequin… which means it’s selecting shares based mostly on textual content patterns from person information, not monetary actuality.
This units it up for all kinds of false or outdated info that might result in disastrous trades that crater your account.
Downside No. 3. It encourages the worst mindset
The concept “AI will commerce for me” will not be a method.
Correct buying and selling entails guidelines, self-discipline, sample recognition, place sizing, danger management – and above all – endurance.
These are abilities you may’t outsource to a language mannequin.
You possibly can solely purchase them by getting within the trenches and studying tips on how to commerce utilizing a confirmed system.
Downside No. 4. No long-term monitor file
Anybody can look sensible with a small handful of profitable trades over a short while interval… in a rip-roaring bull market like we’ve had since April.
However might this ChatGPT buying and selling mannequin maintain up throughout earnings season? A Fed assembly? A Black Swan occasion like COVID or the Housing Disaster?
YOUR ACTION PLAN
Whereas this redditor experiment is a enjoyable instance of how a robotic might commerce for you, NO ONE ought to see it as a viable long-term buying and selling technique.
Whereas AI brokers like ChatGPT may help with inventory analysis…
I’ll at all times favor utilizing realtime information, danger administration, and correct timing for long-term buying and selling success.
However while you mix the analysis energy of an AI agent with the experience of a veteran dealer (like yours actually)… some actual magic can occur.