Jasmine Birtles
Your money-making expert. Financial journalist, TV and radio personality.
How to Use ChatGPT to Invest in Stocks
Ruby Layram
20th Feb 2026
We get it. Investing can feel pretty overwhelming! There are company reports to read, ratios to understand, markets to follow, and strategies to choose. It’s no wonder so many people freeze before they even start.
That’s where ChatGPT comes in.
Used properly, ChatGPT can act like your research assistant, helping you:
- Analyse companies
- Understand financial jargon
- Compare investments
- Calculate potential returns
- Build an investment strategy that fits your goals
It won’t pick winning stocks for you (and shouldn’t!), but it can help you become a smarter, more confident investor.
Here’s how to use ChatGPT to invest in stocks, safely and sensibly.
Also read: How to research stocks like a pro
First Things First: What ChatGPT Can (and Can’t) Do
ChatGPT is a really useful tool for stock market research and portfolio development. However, it can’t replace an experienced investment expert (or the power of your own decision-making!).
ChatGPT is brilliant at:
- Explaining financial concepts in plain English
- Summarising company information
- Running scenarios and calculations
- Helping you think through strategies
- Spotting things you may have missed
But it cannot:
- Predict the future
- Replace proper research
- Know today’s live stock prices unless you provide them
- Give personalised financial advice
Think of it as a thinking partner, not a crystal ball.
1. Use ChatGPT for Fundamental Analysis
Fundamental analysis means looking at a company’s financial health and business model before you invest.
You can ask ChatGPT to help you understand:
- Revenue growth
- Profits
- Debt levels
- Competitive advantages
- Risks
- Industry trends
Example prompts:
- Explain Apple’s business model and main revenue streams.
- What are the key financial metrics to check before buying a stock?
- What does a high P/E ratio mean for a growth company?
- Summarise the strengths and weaknesses of Tesla as an investment.
ChatGPT can turn complex financial statements into something readable, especially useful if annual reports make your eyes glaze over.
You can even paste sections of a company report and say: Summarise this in simple terms and highlight any red flags for investors.
That alone can save hours of reading.
2. Understand Valuation Metrics (Without the Headache)
Valuation ratios can sound intimidating:
- P/E ratio
- Price-to-sales
- Return on equity
- Free cash flow
- Dividend yield
ChatGPT can explain what they mean and how to use them.
Example prompts:
- What is a good P/E ratio for a tech stock?
- Explain free cash flow like I’m a beginner investor
- What numbers should I care about most when analysing a company?
You can also compare companies:
- Compare Company A and Company B based on valuation metrics and risk profile.
This helps you think critically instead of buying based on hype.
3. Use ChatGPT to Calculate Portfolio Returns
This is one of the most powerful (and underrated) uses.
You can ask ChatGPT to help calculate:
- Expected returns
- Compounding growth
- Dividend reinvestment
- Different scenarios
Example prompts:
- If I invest £200 per month for 20 years at 7% annual return, how much could I have?
- Compare investing £5,000 in one stock vs spreading it across an ETF portfolio over 10 years.
- Show me how dividends compound over time.
This is brilliant for motivation, and for understanding why long-term investing beats short-term gambling.
4. Build an Investment Strategy Aligned With Your Goals
This is where ChatGPT really shines.
You can use it to clarify:
- What kind of investor you are
- Your time horizon
- Your risk tolerance
- Your income needs
- Your ethical values
Example prompts:
- Help me design a long-term investment strategy for someone in their 30s who can take moderate risk.
- What type of portfolio suits someone saving for retirement in 25 years?
- Create a simple diversified portfolio for a beginner investor.
- How should I balance growth stocks and dividend stocks?
ChatGPT won’t tell you exactly what to buy, but it helps you structure your thinking so you don’t invest randomly.
5. Stress-Test Your Ideas Before You Invest
Got an idea? Run it past ChatGPT.
Example prompts:
- What are the risks of investing heavily in tech stocks?
- What could go wrong with this portfolio?
- What happens if interest rates rise?
- What are the main threats to this company’s business model?
This is like having a devil’s advocate in your pocket, extremely useful when emotions take over.
6. Learn Investing Concepts Faster
ChatGPT is a fantastic teacher.
You can ask it to explain:
- ETFs
- Diversification
- Dollar-cost averaging
- Compound interest
- Volatility
- Market cycles
In any style you like:
- Explain ETFs like I’m 12.
- Explain value investing in simple terms.
- Teach me the basics of risk management.
This makes investing far less intimidating.
Important Safety Rules When Using ChatGPT to Invest
Although ChatGPT keeps getting more and more advanced, the AI isn’t 100% accurate and can make mistakes.
Here are some golden rules to follow when using the AI as your investing companion:
Always double-check information
ChatGPT can make mistakes or use outdated data. Cross-check with trusted sources.
Don’t use it for live price predictions
It’s not designed for day trading or timing the market.
Never share personal financial details
No account numbers, passwords, or sensitive data.
Use it for thinking, not deciding
Your decisions should be based on real research and your own judgment.
Want a more accurate AI investing app? Check out eToro’s AI investment companion!
A Simple Workflow You Can Try
Here’s a beginner-friendly way to use ChatGPT for investing:
- Pick a company or ETF
- Ask ChatGPT to summarise its business
- Ask about strengths and risks
- Learn the key financial ratios
- Compare with alternatives
- Check if it fits your goals
- Only then consider investing
This turns investing from guessing into a structured process.
Why ChatGPT Is a Game-Changer for Everyday Investors
In the past, this kind of analysis was only available to professionals.
Now anyone with internet access can:
- Learn faster
- Ask better questions
- Avoid rookie mistakes
- Build confidence
- Think like an investor
Tools powered by artificial intelligence from companies like OpenAI are making financial education more accessible than ever.
That doesn’t remove risk, but it does remove confusion.
Final Thoughts
ChatGPT won’t make you rich overnight. But it can help you:
- Understand what you’re investing in
- Build a strategy you actually believe in
- Stay disciplined
- Avoid emotional decisions
- Learn continuously
Used properly, it’s one of the best free investing tools available in 2026.
The smartest investors don’t look for magic tips, they look for better ways to think. And ChatGPT is very good at helping you do exactly that.
This is not financial advice. Your money is at risk. Never invest more than you can afford to lose.
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