These days it seems that more and more artificial intelligence tools are invented and often impinge on our lives. Concerns about AI taking over the world as in the Terminator series of movies are giving way to a fear of missing out as more and more of our friends and colleagues brag about the advantages of using artificial intelligence tools to enhance their lives. Here at Profitable investing Tips we are not so concerned about rival AI’s starting a world war. Humans are sadly perfectly capable of taking us down that path. Rather, we wonder this, where does AI fit in your investing world?
Are There AI Tools to Help You Invest?
The answer is yes. There are several AI tools designed to help with various aspects of investing. Among those commonly used are Composer which can help construct means of automated trading. If you want help with automating chart analysis, TrendSpider is designed for that task. And tools like Magnifi are designed to help with investment research. These and many others can be useful in helping spot and take advantage of opportunities in markets.
How Helpful or Unhelpful Are AI Investing and Trading Tools?
Prior to the emergence of artificial intelligence we have seen automated trading tools in use for years. While these tools save a person’s time and help take advantage of short term opportunities they do not necessarily make enough money for you to justify their cost. As we have mentioned time and time again, the human trader or investor needs to keep track of how well such tools work and make the necessary adjustments to improve results or quit using them altogether. To the extent that you are replacing an automated trading and investment system with an AI tool it is important to keep the same thoughts in mind. Handing your decision making over to an artificial intelligence tool should make your investing life easier and more profitable. Make sure that is the case as you go and do not simply close your eyes and trust an alien “intelligence” to not only have your best interests at heart but also routinely improve your bottom line.
Don’t Get Sucked into an Ever Busier AI World
There was an interesting article recently in Bloomberg about not allowing AI to make one feel like they are constantly falling behind. It appears that many are afraid of missing out as they hear about how great AI is. The fact of the matter is that the more one uses various AI tools the more of a person’s time and life they suck up. This reminds me of an old lady friend years ago who commented that when they invented washing machines they sold them with the promise that using these modern appliances would save time and make one’s like much easier. My dear friend said that as time went on women were encouraged to do their wash more often, even before clothes were truly dirty. The labor saving device never saved labor! This writer’s take on many of the new AI tools is that they often don’t save labor but convince us to use them more and more and make us slaves to more and more organizing, planning, etc.
Image Courtesy of Investmentists
Chat GPT As an AI Example
Chat GPT is a popular AI tool that can churn out massive amount of content in minutes, give advice that makes it sound like it is coming from a person. However, this tool can be guilty of gross inaccuracies or even “hallucination.” This writer’s personal experience helping a friend who was testing AI tools was that he had to double check all content where there commonly were obvious, stupid errors. I shudder to think about someone risking thousand or tens of thousands of dollars with an AI tool that is prone to making dumb mistakes that can all too easily be missed until it is too late.
What Is the Place for AI in Your Investing World?
If you want to give AI tools a try for your investing here are two useful suggestions. First of all try using them to pick potential investments instead of immediately using them to trade in real time in a fast moving market. Second, use AI tools for simulation trading and do not risk your own money until you are seeing routine profits and are not seeing dumb mistakes! Then set up a routine that works for you and not the AI tool. More and more is often not better in the investing world. Make sure that the AI tool is working for you and not the other way around!