Incomprehensible, reckless gambling to some and a profitable money-making scheme to others, there’s no denying that trading on the stock market is not everyone’s cup of tea.

But for those who have the skills and expertise to play the financial markets right, there is a lot of money to be made.

While for others, it can all be lost in an instant.

Despite all the facts and figures, trading is still very much a human enterprise – for now, at least.

However, that could all be about to change. Curious about how AI would fare as a trader, a guy called Nathan Smith invested $100 for ChatGPT to invest, in a 6-month endeavor to understand whether or not Large Language Models such as ChatGPT could work the stock market to turn a profit.

As he explained on Reddit, Smith was curious about using AI to invest after seeing ads online intended to bait users into parting with their hard-earned cash in return for AI to pick undervalued stocks for them.

With his interest piqued (though not gullible enough to buy into these schemes), Smith took matters into his own hands:

“This is part of a 6-month experiment to see how a language model performs in picking small, undercovered stocks with only a $100 budget.”

And though many were sceptical, early results from Smith’s experiment are surprising to say the least.

Impressively, Smith’s investment has already turned a 25% profit, effectively earning him $25 from his $100 investment.

In comparison to stock indexes Russell 2000 and XBI, this is an incredible surge, as the chart accompanying Smiths’ post shows.

Could this just be fluke? Or will the traders of the future be AI?

Admittedly, Smith is feeding the AI a lot of information every day, and has imposed strict rules on his automated trader.

However the proof will be in the pudding if, at the end of his six-month experiment, Smith finds himself substantially richer.

If you enjoyed that story, check out what happened when a guy gave ChatGPT $100 to make as money as possible, and it turned out exactly how you would expect.