Use ChatGPT to visualise stock trends, ratios, and price data.
Build and test investment strategies with AI-generated code.
Calculate ROI, performance, and compare companies quickly.
Artificial intelligence is quietly remodeling the business of personal finance, and ChatGPT is at the forefront. Introduced as a conversational AI, it is now being utilized for much more than simply chatting. From interpreting business data for stock analysis to assisting in developing a rudimentary investment plan, ChatGPT is steadily making inroads into personal finance.
Individual investors, particularly new ones, usually struggle to keep pace with figures, graphs, and financial terms. That’s where ChatGPT comes in. OpenAI’s poster child behaves like a mentor and breaks concepts down. The AI creates formulas for investments, and even writes code to graph your portfolio’s progress.
If you have a list of stock prices or SIP investments, ChatGPT can convert that into neat charts for you. You can also ask for line graphs, moving averages, or Bollinger Bands. Just upload the data, tell it what you need, and ChatGPT can script it out for you.
These graphics are able to emphasize price action along with indicating entry or exit points. They will also allow you to monitor more easily how your investments are performing over time. You can even export the charts for reports or presentations.
ChatGPT can decode financial statements. If you submit annual reports or quarterlies, it will be able to read numbers and provide a lay summary.
If you want to see how a company is performing, have it compute P/E, ROE, or debt-equity ratios. One can also compare two companies’ financials. It’s a convenient shortcut to beginning your research without drowning in spreadsheets.
If you need stock valuation, ChatGPT can assist you in developing a DCF model. You supply the inputs, growth rates, and discount rate, and it can perform the calculations.
Also Read: How to Make ChatGPT Think First, Talk Later: Smartly!
One of the easiest applications for ChatGPT is to compute ROI (Return on Investment). It will provide you with the normal formula:
ROI (%) = (Current Value – Initial Investment) ÷ Initial Investment × 100
It can even be asked to output formulas in Excel or Google Sheets. If you have the investment history in a table, ChatGPT can assist you in computing annual returns, break-even points, and cumulative profits.
ChatGPT will transform business reasoning, logic, and numbers into usable code. It can produce Python scripts or Pine Script (utilized in TradingView) to enable you to test your strategy.
One can inspect the performance as well. ChatGPT request can be used to define terms such as:
CAGR (how much your portfolio increases annually)
Drawdown (how much you might lose in declining markets)
Sharpe ratio (risk-adjusted returns)
This enables you to decide if the strategy is worth attempting or adjustment is needed.
ChatGPT is very good at many things. But it’s not a qualified financial advisor. It doesn’t include trading commissions, taxes, or unexpected market fluctuations.
It’s also unsafe to use sensitive data such as bank information or live account data. Use general or sample information instead when utilizing the tool.
ChatGPT is useful, but double-check the output at all times. AI can make analysis easier, but always make the final decisions with care.
Learning investment fundamentals
Generating financial equations
Visualizing portfolio information
Summarizing reports
Backtesting basic strategies
Real-time tracking of prices
Placing trades
Filing taxes or taking legal counsel
High-risk financial planning
ChatGPT is no longer a chatbot. To many new and inquisitive investors, it is now a guide, making sense of charts, data, and financial plans. It can spell out complicated terms in plain English. The AI can compute ROI with ease, and even assist with testing simple trading ideas.
But it’s no crystal ball. ChatGPT can’t see into the future or remove risk. It’s best used as an aid tool, such as a research assistant you can call on at any time.
Use it to brainstorm ideas, calculate numbers, or discover something new. But before you move forward, always conduct your research. Because in investing, educated decisions are more important than pre-programmed responses.
Also Read: Why ChatGPT Still Dominates AI Traffic Despite Endless Rivals?