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With all the social media raves about ChatGPT being able to do this and that – from writing poetry to doing your kid’s homework – today, we will put ChatGPT to the test.
Can it help us pick stocks?
Here is the first question I thought to ask:
What is the leading stock in the healthcare sector?
And here is ChatGPT’s answer:
“I’m sorry, but I don’t have access to real-time financial data or the ability to provide current stock market information as my knowledge only goes up until September 2021. The leading stock in the healthcare sector can change over time due to various factors, such as …”
My next question:
What are the top large-cap stocks?
“The top large-cap stocks can vary over time and may depend on factors such as market conditions, economic trends, and company performance. As of my last knowledge update in September 2021, I can’t provide you with the most up-to-date information on specific large-cap stocks. However,….”
Let’s see if ChatGPT can help with some easy (really easy) technical analysis questions. So I asked it:
Can you give me some stocks that just crossed above the 200-day moving average?
“I’m sorry for any confusion, but I don’t have access to real-time financial data or the ability to provide current stock information, including stocks that have recently crossed above their 200-day moving averages. My knowledge is based on information available up to September 2021, and I cannot provide real-time or updated stock market data or specific stock recommendations….”
Okay then. Here is my final question about it:
What is the best market indicator for predicting direction?
It answers:
“There isn’t a single “best” market indicator for predicting market direction, as financial markets are influenced by a multitude of factors, and no single indicator is foolproof….”
And then, it goes on to start listing various indicators, with the top 4 being:
It appears that it simply listed them in order of popularity.
It is important to note that I’m using the free version 3.5 of GPT as of October 2023.
Perhaps the newer versions can do better in the future.
Remember that ChatGPT’s answers are unique and are dynamically generated.
So, if you ask the same questions, you may get answers different from mine.
Maybe you will have better luck with your questions. I hope so.
Conclusion
Although I must say that ChatGPT is very good at generating a lot of words without many concrete, specific answers, its grammar and use of English are quite good.
And it does appear to understand what I’m asking for.
The bad news is that ChatGPT is not very useful or helpful in picking stocks.
The results of my questions were disappointing, to put it mildly.
It may be that stock picking is not ChatGPT’s forte.
It may be very good in other subject matters, perhaps.
The good news is that artificial intelligent engines will not soon replace human traders.
We hope you enjoyed this article on whether ChatGPT can pick stocks.
If you have any questions, please send an email or leave a comment below.
Trade safe!
Disclaimer: The information above is for educational purposes only and should not be treated as investment advice. The strategy presented would not be suitable for investors who are not familiar with exchange traded options. Any readers interested in this strategy should do their own research and seek advice from a licensed financial adviser.
