In the complex world of investing, reading high-level insights, whether it is from us here at Finimize or somewhere else, is a step in the right direction. However, to truly get the most out of what you are reading, you want to engage with it on a deeper level. That’s where ChatGPT can lend a helping hand. Today, we’re breaking down how ChatGPT can take your investing game to the next level.
First things first, use ChatGPT to wrap your head around difficult jargon. When you stumble upon fancy terms or concepts that make your head spin, don’t just gloss over them. Say you’re reading about interest rates and you’re scratching your head over real versus nominal rates, or you’re puzzled over what quantitative easing actually is. Stop right there and ask ChatGPT for a detailed, user-friendly explanation. This way, you fill in the gaps and supercharge your learning curve as you go.
Now let’s talk about digging deeper. It’s one thing to grasp the basics, but for some investments, really understanding the why and how can set you apart. ChatGPT can give an intricate way to drill down into these puzzles. Try a prompt like ‘How exactly does quantitative easing operate? Could you elaborate on its transmission mechanisms in simple language and offer illustrative examples?’ Another trick here is to let ChatGPT do some critical thinking for you. Use it to challenge the assumptions in an article, explore different viewpoints, and play the role of a digital Devil’s Advocate. This way, your analysis of investment articles can be much more thorough.
ChatGPT can also be your go-to to get a better contextual understanding. Sometimes articles throw in historical events or obscure figures that leave you scratching your head. Here, ChatGPT can swiftly bring you up to speed. You can also ask for similarities. For example, ‘Could you plainly summarize the key happenings in the 2008 financial crisis and explain how they shape what’s happening now?’
Next up, whether you’re looking to find new investment avenues or get a better grip on your existing portfolio, ChatGPT can help you weigh the practical impact of what you’ve learned. Just be sure to describe your situation as closely as possible so the chatbot can tailor its responses to fit your needs. Try something like ‘Can you help me understand the historical performance of assets similar to those in my portfolio during similar market conditions to what’s described in the article?’
Lastly, let’s connect the dots. Finances are like a giant spider web of ideas. Understanding how concepts are linked together can make you a more adaptable and well-informed investor. If the article takes a specific investment approach, ask ChatGPT about related ideas that can broaden your perspective. For example, ‘How does quantitative tightening relate to other concepts in the context of this article? Explain in conversational language whether they are complementary or conflicting and why.’
Remember, you don’t have to use all these strategies for every article. Pick and choose what suits you. Each trick sharpens a different skill. So go at your own pace. With time, you’ll become a savvy, well-informed investor.
