I've seen em all. Well, at least pretty much all since the advent of the net. And even before that, the snail mail subscriptions that you'd get 4 days old in your mailbox hyping the next hot stock. I had a few of those too. Today of course we have several legitimate websites like SA that feature articles and recommendations from vetted writers who to their credit and for the most part are knowledgeable. But still, many of the stocks they throw out are story stocks that are decades away, if ever, from making a single penny in operating profits. Stoney's thread is a testament to this... but I digress. (But it really is ) Right now you can go on any of the various AI search engines and request a FA analysis of any stock, and they actually do a pretty damn good job. But this is just the beginning and here's what I see coming. The next generation of "pay for tips" stock picking websites will be those proclaiming they own a "proprietary" ( ) stock picking AI engine that has been built upon "years of data", and that they will claim is the new holy grail of picking winners both long term and short term. And yes I know there are a few that are already claiming that, but they are the MySpaces of this game. Soon one or two will emerge, through very strong advertising campaigns and before you know it, their names will become as ingrained in the vernacular of retail traders as sites like Seeking Alpha are now. One hasn't emerged yet... but it will. And it will be backed with big $'s to ensure the ubiquity of its name. And sure they'll have a host of winners over time, but just like all the other iterations of this business model that go back to the days of Jesse Livermore and earlier... within their scan results of "the next hot stock" based on their "cutting edge technology"... will be just as many bs dog stocks that are put in the trader's face for one reason and one reason only... to recruit new bagholders. Same game, shinier platform. Coming to you soon via a CNBC/FB/Reddit/(Or whatever) commercials. ~vz
Yes, I agree with you. I’d only add that it’s actually a good thing because the more suckers /amateurs there will be trading, the better. Here’s why: Pros make money when amateurs lose money. In general, professional traders don't really make money from other professionals; they make money from amateurs. Regardless of what “hot tips” or AI scan / strategy the amateurs have, they lose money by making technical and emotional mistakes. They get impatient, blow stops, take trades when the odds don’t favor their risk-to-reward ratio. They lack planning, understanding and experience. For a growing number of pros to continue making money, fresh, greedy amateurs who believe they can beat the market by using AI, who have no ideas of the odds involved, are necessary. Putting technical abilities aside, the ability to outperform other traders is achieved through 'Behavioral Alpha' (the return one gets versus what is possible). The keys to ‘Behavioral Alpha’ are: High-level of self-awareness A stronger focus on self-improvement than others in the market Newbies and (most) retail traders focus on technical analysis and stock picking, but they don’t focus on 'Behavioral Alpha' and so they become unsuspecting prey for the pros. Trading is about making decisions under uncertainty an it goes against our human instincts, and that’s why I believe new cutting-edge technology and AI won’t make things much easier for newbies. It might just give them false sense of confidence. I agree with you—same game, shinier platform.
One look at each year's best winning hedge funds says pros most definitely make money from other pros too. Not to mention mutual funds that underperform the major indexes on a regular basis.
yes the bullshit is already swimming around on this forum. remember the million dollar monkey images? https://hypebeast.com/2021/10/bored-ape-yacht-club-nft-3-4-million-record-sothebys-metaverse and to think i got him for free - still that is no deal cause it takes up hard drive space.
This isnt going to just be in the stock world. Everyone's going to be paying to be "friends" with the "smart kid" at school (best AI model to make things easy). Constantly paying more for the smartest, while becoming lazier and ultimately dumber. Same thing in the professional world. Buy best AI model, "work" more, paid more, repeat. IMO everyone's going to be doing it, everywhere I think AI as a teaching tool will be very powerful, but having it as a lookup tool is like walking the rest of your life with a crutch Personally, when the internet became mainstream, I stopped memorizing as much. The answer/steps will always be there for me to reference (i hope).
I agree 1000% One of the best things that will come out of AI models early on will be "tutors" for kids in grades 1-12. Hopefully they'll be open source and free. I think they will. Certainly in time they will. Sounds crazy, but in aggregate, I think as these models emerge, they will raise test scores in time. And lord knows we need it. The models will "learn" what it takes to get thru to each individual kid. People learn differently, and that has always been what separates great teachers from all the rest... the ability (and time) to tailor what works for each unique kid. I think we'll see "friendly" AI tutors that will actually become kids' friends and that they will enjoy working with. And not just the 3 R's... but overall well being too. The possibilities are boundless. And they'll happen. We are at the tip of the spear.
Hopefully AI won't be taught to only believe in one ideology. U.S. if ever it was "great" was when all are welcome. Not just of a certain kind.
99% of my automation is going against trends scalping or day trading for couple of points. It could very well be with amateurs or it could be all others are taking profits or their stops being hit. I don't have a clue what Ai does, I never researched it or care, I have seen all kinds of new approaches past 48 years. The public gets all hyped into it and eventually fades. I just keep doing my thing, watching equity curve go up. In a few years, something else will replace Ai.
Yes... and throw in the huge number of Hedge funds that closed shop in the last 25 years from not only failing to make money but also losing a lot!