How to Use ChatGPT for Stock Picks: 3 Best Prompts & Examples

Can ChatGPT Help With Investing?

Yes. Absolutely. But you shouldn’t trade ChatGPT stock picks blindly. 

For superior AI-assisted stock picks, you should focus on platforms specifically designed for finance, with AI models that have been trained to look for markers of growth potential. WallStreetZen’s Zen Ratings system and Fiscal.ai are examples of high-quality AI-assisted stock research platforms.

Ideally, ChatGPT can help support your research on one of these platforms — but you shouldn’t use it as a stand-alone stock-picking service.

I’ll explain everything below — let’s dig into how to use ChatGPT to invest smarter.

Why Use ChatGPT for Investing?

Using ChatGPT for investing works best when you treat it as step one in your research process, not the final word. However, it may be helpful to talk about what it CAN offer:

• Speed and accessibility. You can explore different investing strategies — value, growth, dividend, momentum — in minutes rather than hours. I often use it to decode analyst jargon or summarize complex financial reports.
• Educational powerhouse. New to investing? ChatGPT can explain concepts at your level without the intimidation factor. Experienced investor? Use it to explore unfamiliar sectors or international markets.
• Idea generation. Stuck in analysis paralysis? Ask ChatGPT for stocks that meet specific criteria. It’s excellent for getting your creative juices flowing. But don’t just accept what ChatGPT says blindly. Always back it up with research. That leads to the next point I want to make…

Understanding ChatGPT’s Limitations With Stocks

ChatGPT excels at explaining complex financial concepts in plain English. Need to understand what a P/E ratio means? It’ll break it down perfectly. (Side note: You could also read our blog post: What is a Good P/E Ratio for a Stock?).

Want to know the difference between value and growth investing? ChatGPT can explain both strategies clearly.

But here’s what ChatGPT can’t do: access live market feeds or replace proper due diligence.

Furthermore, due to the lower quality of data it has access to, its information may be outdated or misleading and should always be verified for accuracy. Think of it as a research assistant, not a financial advisor.

Happily, there are AI-assisted platforms that do specialize in financial topics and even stock-picking advice. Here are just a few:

The Solution: Pair ChatGPT With Targeted Investing Tools

I’ll explain how to use ChatGPT to look for stocks below. But I need to reiterate that ChatGPT is at its best when you can use specific investing tools to optimize your research. 

Here are some of my favorites: 

WallStreetZen — My go-to for fundamental research. The Zen Ratings system includes AI in its 115-factor evaluation alongside traditional due diligence checks. Perfect for verifying ChatGPT’s suggestions with real data. And it works — stocks rated “A” using this system have historically delivered 32.52% annual returns.

Seeking Alpha — Essential for analyst commentary and earnings transcripts. When ChatGPT suggests a stock, I always check what professional analysts are saying on Seeking Alpha.

Fiscal.ai (formerly FinChat.io) — This AI-powered platform provides real-time financial modeling. It’s like ChatGPT’s more sophisticated cousin for serious financial analysis.

TradingView — Critical for technical analysis and charting. If you’re timing entries or exits, this complements ChatGPT’s fundamental insights perfectly.

TipRanks — Tracks analyst forecasts, insider trades, and hedge fund activity. Great for seeing what the smart money is actually doing with ChatGPT’s suggestions.

How to Use ChatGPT for Stocks: 3 Best Prompts & Examples

Getting good results from ChatGPT for stocks depends on asking the right questions. Here are some example prompts that would be interesting to both beginner and advanced-level investors.

1. Comparative Analysis

“Compare Tesla and Ford’s financials and valuation metrics.”

After providing a decent comparison of both companies, ChatGPT provided the summarized response:

“Tesla is priced as a tech growth leader with a fortress-like balance sheet and high profitability—investors expect revolutionary future upside. Ford, meanwhile, is a traditional automaker: lower risk, lower return, but with durable earnings and strong cash flow, reflected in modest valuation multiples.”

2. Sector Exploration

“Explain the renewable energy sector’s main investment themes and suggest 3 different types of companies I could invest in.”

Starting the conversation with prompts like these is a great way for exploring new sectors you’re unfamiliar with. Click the link to see how ChatGPT responded.

3. Risk Assessment

“What are the main risks investors should consider before buying bank stocks, and how can I evaluate those risks?”

Even though this is a pretty basic question, getting broad educational answers like these is invaluable for beginner investors starting out their due diligence and researching potential asset classes to invest in. 

The trick is asking follow-up questions. If ChatGPT suggests a stock, ask “What metrics should I check to verify this is actually undervalued?” or “What recent news might affect this company’s prospects?”. 

ChatGPT Stock Picks: Can You Trust Them?

Here’s the uncomfortable truth about ChatGPT stock picks: they’re conversation starters, not investment recommendations.

I’ve tested ChatGPT’s stock suggestions extensively. Sometimes they’re brilliant — identifying genuinely undervalued companies with solid fundamentals. Other times, they’re based on outdated information or miss crucial recent developments.

The fundamental problem: ChatGPT isn’t an actual financial advisor or real-time data provider. It can’t know that a company just missed earnings, announced a CEO change, or faces new regulatory challenges.

What you’ll often find is that the reasoning behind the suggestions is sound, but the current financial metrics or stock performance might tell a different story.

I treat ChatGPT’s stock picks like tips from a smart friend — worth investigating, but never worth buying blindly.

How I Use ChatGPT for Investing…

I’ve found ChatGPT particularly useful for summarizing earnings reports, comparing companies side-by-side, and generating initial stock ideas based on specific criteria. It’s like having a knowledgeable finance buddy available 24/7.

However, when it comes to choosing stocks to invest in, I like to stick with apps that focus on finance — in particular, I make use of WallStreetZen.

My workflow: ChatGPT generates ideas → WallStreetZen for fundamental analysis → TradingView for technical confirmation → final decision → Execute trade on eToro (if applicable)

Investing With ChatGPT: Advanced Strategies

Once you master basic prompts, investing with ChatGPT becomes significantly more powerful with these advanced techniques:

Timing & Price Context

“Is Microsoft stock expensive or cheap right now compared to its own history? What’s a reasonable price range where it might make sense to buy?”

After providing a price chart and explanation of its reasoning, ChatGPT (Model 4.1) provides the following summary:

“Microsoft is currently trading at a historically high valuation, reflecting strong investor conviction in its AI-driven future. If you’re moderately bullish, waiting for a pullback into the $475–$500 range makes sense.

If you’re seeking a safer entry and are willing to be patient, $425–$475 would be a more conservative zone providing value and upside potential.”

This type of prompt is invaluable for avoiding emotional buying at peaks. Rather than asking ‘should I buy now?’ (which gets generic advice), you’re asking ChatGPT to contextualize current prices against historical patterns.

This approach forces you to consider valuation discipline instead of chasing momentum. Most retail investors buy at highs because they don’t understand historical context — this prompt fixes that blindspot.

Portfolio Fit Assessment

“I have 60% in VOO, 30% in bonds, and 10% in individual Apple stock. Would adding Google create too much tech concentration, and what percentage would make sense if any?”

After providing detailed reasoning regarding this simple query, ChatGPT provided the following summary: 

“Yes, it does increase your tech concentration.

If you want to add Google, keep it under 3%, or shift your Apple position instead of adding more tech.

Remember: There’s nothing wrong with a tech tilt if it matches your risk tolerance and goals, but it’s good to be aware of your exposure!”

This demonstrates ChatGPT’s strength in portfolio-level thinking that many investors skip. Most people research individual stocks in isolation, but this prompt forces you to consider concentration risk and overall balance. The 3% suggestion isn’t gospel — it’s a starting point for your own analysis.

The real value here is developing systematic thinking about portfolio construction. Instead of collecting random “good stocks,” you’re building a coherent strategy that manages risk across positions.

Portfolio Construction

“Design a defensive portfolio for someone with $50,000 who’s 5 years from retirement, focusing on dividend yield and capital preservation.”

ChatGPT excels at big-picture asset allocation thinking that considers multiple variables simultaneously — age, risk tolerance, time horizon, and goals. This type of prompt gives you a structured framework to evaluate whether your current portfolio actually matches your situation.

Use these responses as starting points for deeper research into specific asset classes and ETFs. The framework matters more than the exact percentages — it teaches you to think systematically about portfolio balance.

Scenario Analysis

“How might rising interest rates affect REITs, and what should REIT investors watch for in 2025?”

This prompt type turns ChatGPT into your macro research assistant. While the initial response gives you the framework, the real value comes from follow-up questions like “What specific metrics should I track?” or “How have REITs performed in previous rate cycles?”

This approach helps you think systematically about external factors that could impact your holdings — something individual stock analysis often misses. Smart investors anticipate macro changes rather than react to them.

Sector Rotation

“Explain the typical sector rotation during economic recovery and suggest specific ETFs for each phase.”

Understanding sector rotation patterns helps you position your portfolio for different economic phases rather than chasing last quarter’s winners. ChatGPT provides the theoretical framework — your job is applying it to current market conditions.

The key insight here isn’t timing the market perfectly, but understanding that different sectors thrive in different environments. This knowledge helps you avoid major allocation mistakes during economic transitions.

(Oh, and by the way — if allocation is a topic of interest to you, you may enjoy our post on how to construct a DIY Ray Dalio portfolio.)

International Exposure

“Compare investing in European stocks through ADRs versus European ETFs, including tax implications.”

This type of comparative analysis showcases ChatGPT’s ability to break down complex investment decisions with multiple variables. International investing involves tax implications, currency risk, and structural differences that most investors don’t fully understand.

The real value is learning to systematically evaluate trade-offs rather than making decisions based on incomplete information. ChatGPT helps you identify all the factors you should research before committing capital.

Advanced Tips for ChatGPT Stock Research

Ready to take your ChatGPT investing research to the next level? These advanced techniques will help you get more precise, actionable insights from your prompts.

Prompt Engineering for Better Results

Be specific about timeframes: Instead of “Is Tesla a good investment?” ask “What factors should I consider when evaluating Tesla’s prospects over the next 2-3 years?”

Request multiple perspectives: “Give me both the bull and bear case for investing in cloud computing stocks right now.”

Ask for quantitative criteria: “What financial ratios indicate a strong dividend stock, and what are the ideal ranges for each?”

Ask ChatGPT to fact-check itself: After getting an initial response, follow up with “Can you double-check that analysis and point out any potential weaknesses in your reasoning?” or “What assumptions in your response might be wrong?”

Verify sources and timestamps: When ChatGPT mentions studies, reports, or data, ask “What’s the source and date for that information?” ChatGPT often references outdated information without clearly indicating when it’s from. Better yet, check the sources on your own, using the links ChatGPT often provides along with its response.

Understand when you’re getting training data vs. real-time info: If ChatGPT doesn’t mention searching the web or accessing current data, assume you’re getting information from its training cutoff, which can often be based on outdated information.

Common Mistakes When Using ChatGPT for Investing

Here are some common mistakes investors make when using ChatGPT for investing:

Mistake #1: Taking suggestions as gospel. As stated above, always verify everything through reliable financial platforms and reputable news sources.

Mistake #2: Asking vague questions. “Good stocks to buy” gets mediocre results. “Undervalued dividend aristocrats with strong balance sheets” results in a much better selection.

Mistake #3: Not providing enough context. ChatGPT can help, but only if you share relevant details about your situation, income, and goals.

Mistake #4: Ignoring recent developments. ChatGPT’s training data has limits. Always check recent news and earnings before acting on suggestions.

Mistake #5: Treating it as your only research tool. ChatGPT excels at idea generation and education, but can’t replace comprehensive financial analysis platforms.

Pros and Cons of Investing With ChatGPT

Here’s where ChatGPT shines, and where it falls short:

Pros	Cons
Available 24/7 for instant research help	No access to real-time market data
Excellent at explaining complex concepts	May have outdated or incomplete information
Great for brainstorming and idea generation	No legal or fiduciary responsibility
Helps beginners learn investing fundamentals	Requires verification through other tools and resources
Free to use with detailed explanations	Cannot execute trades or provide timing
Can analyze multiple scenarios quickly

The Reality Check

I’ve been using ChatGPT for various purposes — including investing for many years now, and the pros definitely outweigh the cons — when you use it correctly.

The biggest advantage? It democratizes financial education. Complex investing concepts that used to require expensive courses or financial advisors are now accessible to anyone.

The biggest risk? Overconfidence. ChatGPT can make you feel like an expert quickly, but relying on raw, unvetted information without the actual knowledge and proper verification tools is dangerous in the stock market.

Final Thoughts: Is ChatGPT a Good Investing Companion?

ChatGPT for investing is an excellent research assistant — not a replacement for thorough analysis.

After using it extensively, I can confidently say it’s revolutionized how I approach investment research. The speed of idea generation and concept explanation is game-changing, especially for exploring new sectors or strategies.

But — and this is crucial — it works best when paired with verified data from trusted platforms like WallStreetZen, Seeking Alpha, and TradingView.

My recommendation? Start with a few simple prompts today. Ask ChatGPT to explain a concept you’ve always wondered about or generate some stock ideas based on your interests. Then take those ideas and run them through proper analysis tools.

The combination of ChatGPT’s flexibility with real financial data is incredibly powerful. Just remember: in investing, verification is everything.

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