Where AI fits in trading

31 Mar 2026

People keep asking me if AI can help them make money from trading. My honest answer is not really.

As long as there’s a human in the loop, you’re still dealing with the same creature driven by fear and greed, and that human will keep making the same mistakes. But beyond psychology, there’s a bigger problem. There’s no real informational edge left in markets. The odds are that everything is priced in. And even when it isn’t, operating under that assumption is almost always a good idea.

The people actually making consistent money in markets are high-frequency trading firms, market makers, prop desks etc that have built infrastructural and data moats over years, with significant investment of time and capital. Those are real edges.

So, where does AI actually fit? It’s a tool to help you behave better. Not to generate alpha.

What it can do is help you build and test strategies, then execute them systematically, removing emotion from the equation. That means fewer panic sells, less revenge trading, and more consistency. What it can’t do is turn a bad strategy into a good one or create a magic money tree.

This is still an edge, just a different kind. AI can make you more disciplined, but not smarter. And if you think about where most trading losses actually come from, that distinction matters more than people realise.

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