It's the hottest and the newest technology that sparkly intense debates everywhere. We go from Wall Street to retail trading, but such advantages brought by AI has also raised some concerns. but with AI it process so much more than we can do ourselves. I think one day AI will be trading instead of humans it already is I Know some of you are worried and are wondering about what can you do to stay profitable and stay ahead in an industry that's increasingly dominated by AI Well, AI made it even more difficult or easy for you to make money in trading.

Hmm Well, if you're asking those questions, you are here for a treat in this video. I'll be sharing The Good the Bad and the Ugly and the undeniable potential of AI trading. you're gonna hear some golden insights and with them from a veteran trader who's been trading for over 20 years since A.com Bubble in 2000. and you'll also hear from an ex-ceo and a Quant Trader who rang his own automated trading firm.

In this video we're gonna be discussing how will artificial intelligence help us Traders make money, how it can potentially hurt us, how AI tools will impact and shape retail trading, whether or not you should invest your own money into AI trading and finally, how you can AI prove your trading skills for the future so you do not get replaced by a bunch of robots before we jump in. I Just want to make it clear that while I have been trading for over eight years, I am by no means an AI Guru I'm just a curious day trader who doesn't want to go back to my nine to seven job or if there's even a job to go back to. So if you're ready to dive into this fascinating discussion about AI trading, make sure to smash the like button. And now let's get started.

How can artificial Intelligence help Traders become better at Trading Sold A million dollar question you're probably asking is Shay Everything AI seems to be flying to the Moon How on Elon's world can I use artificial intelligence to improve my trading and profitability? Well, there are two major ways in which AI can really help us retail. Traders Number one, use AI as a super tutor for trading. The first and the most obvious way you can use AI is to leverage this tool to speed up your learning process. I Asked this question to my friend Ding, who's an ex-ceo and a Quant Trader who funded his own Quants trading firm I Believe.

However, the amount of information that people are like that are watching this right now. the amount of information that my children that my friends can get from YouTube and from different places and now with AI and Chachi BT and the different different models and AI models that are coming out absolutely brilliant. What you can do with it and the information you get from it. Um, I Think it's going to help people get better, smarter, more profitable, faster.

Okay, because the amount of information you can stuff in your brain. So if you have the capacity to take on the information and be good at it, um, it's it's incredible. Where before let's say you're reading through some information and it comes up and says, um, take a look at the view app, what's view up? You'd have to go back to the internet Go to say Investopedia Google look it up, see if it brought up the right thing for you or now, just oh, keep chat GPT open or one of the University Gpt's open and just put in hey, what's Vwap? Please explain it to me as a fifth grader and tell me how this works and it'll boom. Give you an outstanding explanation so it's like a super tutor like what? Dean just just spoon feeds you the complex trading Concepts in a way that you can understand and I Couldn't agree more when I first started trading I usually spend hours researching and figuring out complex trading lingos as an attempt to understand what some chat rooms are talking about.

Now I can go on chat Gbt and get an answer in minutes I'm pretty certain that if I started to learn trading all over again this year, I can definitely shave off weeks if not months of researching. and Googling even if you are already an experienced Trader Maybe you don't need an AI bot to explain to you simple terms like V-wap or market cap, but you can still use it as an assistant to Gathering Trading knowledge I Also asked my friend China a computer science major CPA and a trading veteran for over 20 years China is no stranger to using AI in his trading and he's seeing how AI has affected his own industry in accounting. This is how he would use AI to assist in his Trading Circling back to some of the AI stocks, we talked about: What's your opinion on AI Trading Do you think you know in a couple years? do you mean AI Trading like trading AI stocks Or how AI will impact trading? How AI will impact trading? What's your opinion? Well, it's definitely going to impact it somehow. Will it be a an AI robot trading against us or like a futuristic Terminator probably not.

I Feel like the short-term AI will be like an assistant so you know instead of me looking up shelves and stuff, I can just verbally say hey, this company's here, what kind of shops do they have and it can produce information for me on the Fly that I can that I can act on really quickly I feel that's the first route is assistance to help human Traders Yeah help human Traders Like you know we sit down and Google something but now Ai could be like hey, I'm looking at this thing and maybe it's trained that every time I look at a company, it's going to produce a report that it knows of six metrics. It's gonna go to six with different news sources and give me everything it knows in a compiled format. So I could be like yes, no. Okay, okay, ask it more information.

So as you can see, it doesn't matter whether or 20 years. there's always something new to learn in this ever-changing market and you could stay ahead of the learning curve and make better decisions by leveraging. AI Traders If you're curious to see how I use Chat Gbt to do some of my information gathering for trading, let me know by commenting AI down below. The second way you can use AI to help with your trading is to use it to plan your trades.

On top of that, people are going Oh, I can use this Dakota Trading's a winning trading system. No, you can't It doesn't work that well. You can put it in I saw you took it, took a shot at it. Yeah, you have to know coding.

You have to know how to correct. That's not as easy as people think. Not yet. Anyway, not yet.

it will get there I'm sure, but at the moment it's not. so. um, you have to know what information to put in. Yeah, so as long as you know when to buy, when to sell, when to buy, when to scale out, when to short, when to scale out, then you can put that information in I Think in time, it's going to be phenomenal.

Yeah, so you think it's a tool that Traders can use to help build their systems I Think that it's a tool that people can use to learn faster. Okay, not so much for trading. I've tried to get it to write different types of code for different types of platforms and there's mistakes. So if you're okay if you're a coach, interesting, if you're a programmer I think it's phenomenal.

If you're not a programmer, once again, you should probably look into some of these uh, platform that that can do the programming for you. And if you're a developer and you know what works and if you know trading and you know trading, then great. If not, you better learn, you better learn a strategy. You better get a coach.

If not garbage in garbage out, you know it's true garbage in the Chachi PT Garbage out. Yeah, that's hilarious. Like what Dean just mentioned AI can do certain tasks for Traders but that's only if it's fed the right information. It's like a super smart assistant that can do a lot of different tasks.

However, he or she will still need some specific instructions from the supervisors. for example, let's say you need some help with pre-market trade planning AI Language models like Chachi BT can do that, but you need to tell it what to research on otherwise the AI tool will spit out a bunch of crap such as all the recent news, the company's market size, employee number, year of origin Etc and just a bunch of mumbo jumbo. But if you tell us specifically to look for information such as the stocks float, market cap, to dates, headlines, and for certain stocks SEC filings and cash burden rates, it can deliver exactly what you need without some specific and Technical requests from the trader. Artificial intelligence at this point will not be able to provide the right information for you to come up with a trading plan and for planning your strategies.

Otherwise, like what Dean said, it's garbage in garbage out. But guess what? Let's say you already have a set trading process and you want AI to automate it. You can definitely train an AI model to follow your process from researching news to drawing up daily key levels. Owingo AI is a useful tool that can speed up your trading, your learning process and do some of your pre-market trade planning for you.

But remember, it still requires your guide islands and prompts the dangers of artificial intelligence and how it can hurt Traders Alright, so now I gave you some strong reasons for AI but I wouldn't be keeping it real with you guys if I didn't talk about the ways AI can hurt your trading performance and why you shouldn't rely too heavily on it just yet. AI is not for proof for one. While AI is very powerful, it's not without some errors. The algorithms developed by AI are only as good as the data you train it on.

AI can and does make mistakes, sometimes pretty expensive ones. For example, in my 100 000 AI Trading Strategy video, it took me half a day to improve on the mistakes the AI bot created in the scripts. As you can see when areas like this happen, we as humans still need to roll up our sleeves and correct those algorithm mistakes and make these strategies work. AI cannot adapt to Market environments.

The next way AI can potentially hurt your trading performance is that it's simply not as good as human. Traders When it comes to reacting to certain Market shifts, we all know that trading the market is a wild ride, especially these days. markets are unpredictable. They are influenced by human sentiments Global events and unpredictable twists.

Artificial intelligence is great at finding patterns as directed so far, but I can also trip up when things don't go according to the script. Any AI trading strategies you implement will require human monitoring and to be updated with a market environment. An AI model that worked perfectly in 2020 might be stumbling in 2023. Take the current interest rate environment as an example.

No. AI saw that coming. So humans like you and I unless you are bought watching, this still need to be there, guiding our AI tools and Bots and updating them on the market environment and adjusting your strategies. along the way.

You need to teach your Bot how to operate in a brand new environment, when to stop out, and how to be aggressive or conservative when it comes to entries and profit taking. How will artificial intelligence impact retail? Trading I'm sure most of you are aware of the areas where AI can outperform us human retail. Traders They can process tons of data way faster than a human ever could. They can monitor the markets 24 7 and watch their positions.

And since they aren't human, their emotions will never get in the way of executing the strategies. So will AI take over retail trading. Will it make the retail? Traders Obsolete And are you and I out of a job? Don't worry. Traders The short answer is no, not right now.

The long and more complex answer is maybe probably because I think a lot of people are like, at least in the trading industry and I'm sure there's a lot of other Industries are a little bit worried about AI thinking that oh, the the once AI becomes more popular or technology developed, it's gonna eventually replace all retail trading. So what do you think about that? Fear or worry? No I think that there's um, I I Don't think so Well, Mutual fund managers and a lot of hedge fund managers. A lot of hedge funds are just mutual funds with a lot of fees attached to them in performance fees. Yes, um, a lot of those guys are and people are getting very average returns.

So if they take their same strategy and put it in use AI to write some code and do that, they're still going to get the same output right. So you need good input to get good output. If you have excellent input, you can get excellent output. I Don't think they're going to get rid of a lot of things I think with a lot of these Robo Traders and that sort of thing you take a look at, there's you don't see a lot of Articles saying hey, these people put their money into these Robo Traders and the returns are phenomenal.

You don't hear that, it's just, it's just not happening. What's happening is there are some excellent Traders and there's a lot of good Traders and a lot of them being getting a lot of exposure on the internet. Now it's amazing I mean learn from them. Um, but I really? I Don't think just yet I think in time probably.

But right now I haven't seen it because the in put correct yeah the AI is not all they're trying our successfully discovering new strategies for you. Yes, discovering new research for you. You have to tell it what to do. Yeah and you know I've taken a look and I've tested with it and and done Just make me a winning strategy and it comes back with a lot of apologies.

Garbage. Yeah, garbage. Yeah, it's so yeah. Um, I'm not a believer in that yet, but have I have I used it for an assistance in a lot of things? Absolutely Yeah, absolutely.

But you so you don't see it replacing retail trading completely? Well, No. I feel part of real retail trading is the the journey or the or acquiring the skill set right? I Feel like it might it might really take over in a lot of you know, in a Wholesales market like I'm sure there's already New York Mathematical Quant Traders using AI to some degree. but I feel like retail Traders want to be retail? That's the whole point, right? if you wanna I mean there's already bots in place for people that want to trade using Bots but I feel I'm sure that might exist. but I still feel AI won't be able to.

It might be able to handle like EMA bounces or view out bounces, but it won't be able to handle nuances when news hits right away, right? So I feel like short term? They'll be able to produce existing information to you fast, right? and you'll still have to act on it like if you are more of a technical traders using all the indicators. you said yeah, it can help you trade. We have this at this moment in the room that's probably a year ago, but forget what's happening. but spy hit like a 200 day EMA on the yearly and then just starts selling off and people were like I don't know what's happening.

this makes no sense I'm like it's just quants. it's just it. Once in a blue moon it's a Target against computerized systems and they start selling and it dropped like I don't know 10 points really fast and so that's what I feel that's a field extent of what quants can do right now is that they can hyper trade in a small Zone Yeah and then when that major Target gets hit they you know they're looking for it. They're going to sell into it or buy it up.

but I feel for us AI is going to help us being like a consistent right so you won't need Daniel anymore. he'll just be like hey I will be producing all this all the suggestions for you sorry Daniel um yeah it's yeah, that's what I think I think short term will be like. it'll be an assistant and a helper in your daily drive right? Okay, yeah, for us retail, Traders trading is a journey of learning, risk taking and growing. The AI cannot replicate.

Plus when the unpredictable news breaks, the nuances are often Beyond Ai's current abilities. So I don't think you need to necessarily see AI as a replacement, but rather a helpful sidekick or a helpful tool that can accelerate your trading process. And for my AI Traders remember the Mantra that Dean just mentioned garbage in garbage out. The effectiveness of AI trading will depend on the quality of the data that's fed currently.

AI isn't replacing retail Traders and it still weighs off from creating brand new, profitable strategies independently. it still needs us human Traders as the captains of the ship. So in the big picture, AI isn't poised to take over just yet, but it will increasingly shape the trading industry. Our challenge is to harness it as a tool while staying in control.

Remember Traders we are in the driver's seat now should you invest your own money into AI trading. So now now knowing everything we know about AI The Good the Bad and the Ugly I want to know: Would you trust your hard-earned money with AI trading and maybe specifically with Chat's Gbt. Do you think you will trust AI with your money? a chat GPT For example, would you trust it with your money to trade? uh I probably would with a small float I don't think I'd go all in with with AI right away I would definitely test it, you know I have some YOLO in me I I'm okay with throwing some money at an experiment I've done, you know I've made I've made worth decisions with my money on a Sunday than I uh than I have during the stock market. So that implies NFL Betting football? Um, but I See yeah so but um yeah.

generally I would I would I would test things out? Yeah, smaller, smaller float. see how it does? Um, see how it does during like Panic times right? because I feel like where AI is going to fail short term until it can Master it is when there is a massive news Panic flush. You know when everything's progressing in a range or some sort of mathematical formula. it can do great, but there's always we have emotion, right? So that's what drives Market is some.

There's lots of fear or greed whichever way. and um Howard will behave Then right? it's a good try to shorten to a parabolic. Is it going to sell out into a flush? Um, is it just going to hold everything and and then have an error right? So I definitely would like to test that interesting take right? Honestly, I'm with China on this one I trust a small portion of my money with Chat Gbt or some similar AI trading tools I mean I've lost more on stocks I traded in the past myself. so why not let AI take the shot for a chance? In fact, a little teaser here I'm currently working on a video right now where we explore the very idea of AI Trading So make sure to stay tuned for that video.

If you're excited to see it, make sure to let me know by commenting AI down below I'll do my best to publish it ASAP How to AI prove your skills for the future of trading? Moving on to the next point: I Want to touch upon how we as Traders can prepare ourselves for a future where Ai and trading will become even more intertwined again just to reassure you. Retail trading as we know it isn't going anywhere. While AI can enhance our trading abilities, it doesn't replace the need for human. Traders Artificial intelligence is a tool that Traders can use to augment their skills and knowledge.

It can provide valuable insights to help us without decision making, but it's ultimately up to the traders to make the final call. with that in mind. No matter if AI is making your trades for you in the next 25 years or so, you still need to know the basics of trading and that would be risk management, understanding price action, mastering your emotions Trader Psychology, trade planning, and everything else I Talk about on this channel the better of a Trader You are today, the better off you'll be in the future where AI plays a big role in trading. Perhaps the question isn't really about whether AI will replace Traders but rather how Traders can best adapt and leverage AI to their advantage in trading in the ever-changing markets.

If you want to watch or listen to the full interview with China and Ding, you should check them out down below if you're interested in seeing how I set up my AI trading with Chat Gbt, then you should check out this video over here.