The article also discusses the rise of algorithmic trading, which is expected to grow at a rate of 8.53% over the next five years. The technology, which has been around since the early 1980s, is becoming more accessible to everyday investors, with trading algorithms currently responsible for 92% of Forex trades. However, the author warns that while algorithmic trading has the potential to generate profits at a speed and rate that is impossible for a human trader, it is not perfect and requires regular monitoring and due diligence. Despite its value, over-reliance on algorithmic trading can be problematic in the face of market disruptions.
Key takeaways:
- ChatGPT, an AI chatbot, has gained significant popularity with over 100 million users and nearly 2 billion website visits per month, despite mixed reactions from different countries.
- Algorithmic trading is seeing increased usage in the finance world, with over 60% of U.S. equity trading being accounted for by algo-trading and the industry expected to grow at a rate of 8.53% over the next five years.
- Algo-trading, while potentially profitable, requires regular monitoring and due diligence to ensure profitability and mitigate risk.
- Despite the reliability of algo-trading, it's crucial to seek the help of a qualified financial advisor, especially in the face of market disruptions or if you're new to trading.