Using ChatGPT to Trade Stocks - Let's Talk

Let's talk about recent experiments and studies that are using ChatGPT to trade stocks...and why it's probably not a good idea.

DISCLAIMER:
This channel is for education purposes only and is not affiliated with any financial institution, although Richard does work as an employee for an investment manager. Richard Coffin does not provide recommendations on The Plain Bagel - those looking for investment advice should seek out a registered professional. Richard is not responsible for investment actions taken by viewers

[robertjmessenger]

"I'm not a data scientist, I'm not going to get into the technicals.. that I'm not a subject matter expert on."
Thank you. the world needs more of this. not read a couple google searches and pretend ones an expert

[HowNOT]

So glad someone makes party pooper reality checks. Thanks 🙏

[moneysins]

ChatGPT produces responses based on its training dataset, and given OpenAI scrapped Reddit that should tell you all you need about whether it’s a good investor or not

[DanielTompkinsGuitar]

I’m an AI scientist that trains LLMs, and you did a great job explaining LLMs. One minor nitpick is that the blobs showing parameter size at 6:49 isn’t correct. Idk why that image spread all over the internet, but OpenAI didn’t release the number of parameters for GPT4 like they did for previous versions. We know that has either the same parameter size or just a moderate amount more. It’s certainly not nearly as large as the image says. Other things like dataset size, data cleaning, and larger token sequence size probably accounts for improvements more than any parameter increase. The small and large blobs have become a bit of a meme/joke among AI researchers. I really enjoy your videos, especially the party poopers!

[helder]

Finding a dude in Youtube with your level of speech carefulness and accuracy is like finding water in the desert

[sergeyderbeko]

We used chatGPT for a real life coding project, and it is very useful, but as an assistant. What people seem to miss is that it doesn't think, it just guesses a correct order of words very well

[Boredblacksheep]

I had to challenge someone on this. The person was so convinced that it's working well that I just gave up. I am expecting some type of investing horrors to happen soon enough.

[Premium_Water]

Since you took time to review ChatGPT I asked ChatGPT what it thought about this channel.
As an artificial intelligence, I don't have personal thoughts or feelings. However, I can provide an analysis based on available data up until my last training cut-off in September 2021.

"The Plain Bagel" is a YouTube channel that provides educational content primarily focused on finance and investing. The channel aims to simplify complex financial concepts into easy-to-understand terms, making it a valuable resource for beginners in the field of finance or for those looking to expand their knowledge. The creator, Richard, has a background in finance and uses his expertise to explain topics ranging from the basics of investing to more complex financial theories.

The channel has been praised for its clear and concise explanations, as well as its ability to break down complex topics into digestible information.

[yada]

It can not be stressed enough as you mentioned that ChatGPT is trained up Sept 2021 anyone using it must remember this. ChatGPT will tell you this if you ask a question that requires current data

[humtydumty]

Hi Richard, well spoken! I totally agree with you about ChatGPT for finance that gives us zero edge and a lot of illusion comes from quick and easy money scams.

[davidxiao]

Richard is trying his best to maintain faith in humanity as he makes this video.

[Kevin_Street]

Thanks for another excellent video, Mr. Bagel! It's easy to see the appeal of using a mysterious, intelligent sounding black box to make stock market trades. In our modern world we're conditioned to think of computers as infallible, even when they're not designed to do the thing we want them to do. It's like using your refrigerator to clean your clothes, but people don't understand that because they don't know how ChatGPT works. I hope your video helps people understand the difference. You explain everything very clearly.

Actual algorithmic trading is, like you said, a volume business. Lots and lots of high volume low profit transactions. Nobody who has to use a broker and pay transaction costs for each trade will ever make money that way, even if they happen to have a black box made for the purpose.

[andyjagger]

Great analysis. Since it's rude to talk about an AI behind its back, I though I should ask ChatGPT what its views are on the subject:

Me:
Can you accurately pick stock prices?

ChatGPT:
As an AI language model, I don't have access to real-time data or the ability to accurately predict stock prices.

Stock prices are influenced by a multitude of factors, including market conditions, economic trends, company performance, and investor sentiment, among others. Predicting stock prices with high accuracy is extremely challenging, even for financial experts and analysts who specialize in this field. It's important to conduct thorough research and analysis, consider various factors, and consult with financial professionals when making investment decisions.

[thepaladin]

11:55 love how you compared this to being a next "Gold Rush" 👍

[colinmcintyre]

I'm amazed you're a year ahead of me, but I was really happy with my at the time feeling of an original idea to have GPT play a role in a trading algorithm. You just have to be over 51 %.

[erintheunready]

The issue is that physically you can only generate so much REAL value over a given time frame... adding all these algorithms as you said only chases smaller and smaller gains because in actual reality we can only create so much real value at a time. Stocks are not just infinite money machines pumping out money for investors, they ultimately have to represent value being generated in the everyday economy.

[Necore]

What I learned from this video: The more training data an AI has, the worse it is at trading and fish are still the best investors.

[mururoa]

The problem of the misuse of AI isn't limited to trading, although it's a good example. A lot of people are using to ChatGPT to fill the cracks in they sub-optimal skill set so they would appear more competent than they really are. This enables them to mislead their bosses, their peers, their customers or their patients, with sometimes catastrophic results.

[EluneMusic]

Bro crypto bros will literally believe any and every get rich quick scheme this is crazy 💀

[imAngryy]

0:27 that “No.” was unexpected and gave me a good laugh ! Thank you 🤣🙏