The recent takeoff in artificial intelligence has piqued my curiosity about the future of retail investing and daytrading. From where I sit, it appears that only a handful of people in trading subreddits have some success with manual trading, but most are not. Of the people who have found some success, only a small majority have had consistent success over a long period of time while not becoming consumed by stress.
I have traded for a long time, but the scalability of success feels like a very steep mountain to climb due to many factors. After spending some time lurking in the algotrading subreddit and the recent blow up of ChatGPT, I'd like to know if automated trading is the future for retail investors. It carries a lot of benefits: emotionless trading, free time away from staring at charts, better overall entry/exit timings, etc. Sure, it comes with disadvantages, like understanding how to write code or having the mental tools to build an algorithm. But with lots of new automated trading platforms like PlutoFi popping up, I wonder what trading will look like in 5-10 years.
Studies show that a large majority of hedge funds use algo trading of some form, particularly during times of stress in the markets. And the ones that aren't trading with Algo's are using Automated and AI tools to diagnose market conditions to make manual decisions.
Without rambling further, I just want people's thoughts on why they think manual trading is the best option and if it will remain the best option for the years to come.
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