Disclaimer: The information below is for educational purposes only. It is not financial advice or a recommendation to buy or sell securities. Always conduct your own research and seek professional guidance before making any trading decisions.
This guide is designed for traders who already understand stock trading and want to leverage ChatGPT prompts to maximize their efficiency and decision-making in the market.
With these actionable prompts, you can outline research, analyze data, and refine trading strategies.
Doesn’t matter really if you trade in the tech, energy, or financial sectors, to name few. These prompts will take you from pont A to point B faster than ever.
Key Notes
- Purpose: To assist with market analysis, strategy creation, and actionable insights using ChatGPT during trading.
- Disclaimer: These prompts are not financial advice. Always cross-verify information and consult professionals before trading.
- Who is this for:: Experienced traders looking for ChatGPT-powered tools to amplify their productivity.
Table of Contents
1. Prompts for Market Research
Daily Market Overview
Prompt:
“Provide a summary of today’s pre-market movements for the [US/EU/Asian] stock market, highlighting major indices, trending sectors, and any significant news driving these movements.”
Follow-Up:
“List three stocks with the largest pre-market gains and explain the key drivers behind their price action.”
Why This Works:
It delivers a quick snapshot of the day’s market, saving time on manual scanning.
Sector Performance Insights
Prompt:
“Analyze the performance of the [Technology/Energy/Healthcare] sector over the past week. Highlight the best-performing stocks and discuss the reasons behind their performance.”
Follow-Up:
“Identify potential laggards in the same sector that could rebound based on historical patterns or upcoming events.”
Outcome:
Tailored insights into sector trends and potential opportunities.
Top News-Driven Stocks
Prompt:
“List stocks most affected by breaking news over the past 24 hours, summarize the news, and explain its potential impact on short-term price movements.”
Follow-Up:
“For each stock, provide recent price data and suggest technical levels for potential entry and exit points.”
2. Prompts for Technical Analysis
Pattern Recognition
Prompt:
“Analyze [Stock Ticker]’s daily price chart for the past 6 months and identify key technical patterns such as head-and-shoulders, triangles, or double tops/bottoms. Provide an actionable summary with potential price targets.”
Follow-Up:
“Based on these patterns, outline a potential trading strategy with risk management rules.”
Why This Works:
It helps automate the identification of patterns that require detailed analysis.
Momentum Indicators
Prompt:
“Analyze [Stock Ticker] using RSI, MACD, and Bollinger Bands. Highlight whether the stock is overbought, oversold, or trading near critical resistance or support levels.”
Follow-Up:
“Suggest actionable trading decisions based on the above indicators and historical accuracy of similar signals.”
Customized Alerts
Prompt:
“Set up a virtual alert system for [Stock Ticker] to notify me when RSI crosses below 30 or when the price closes above the 50-day moving average. Simulate the past week to show how many signals would have triggered.”
Why This Works:
Allows for automated monitoring of important trading signals.
3. Prompts for Fundamental Analysis
Valuation Metrics
Prompt:
“Compare the valuation metrics (P/E, P/S, EV/EBITDA) of [Stock Ticker] against its top 3 competitors. Highlight any anomalies or opportunities based on these comparisons.”
Follow-Up:
“Based on valuation and earnings trends, suggest whether this stock is overvalued, undervalued, or fairly priced.”
Earnings Analysis
Prompt:
“Analyze the latest earnings report for [Stock Ticker], summarizing key metrics such as revenue growth, EPS, and forward guidance. Highlight any surprises and their potential impact on the stock price.”
Follow-Up:
“Compare these earnings to the previous quarter and industry averages to assess the company’s trajectory.”
Why This Works:
Cuts through lengthy reports to deliver actionable insights quickly.
4. Prompts for Trading Strategies
Developing Custom Strategies
Step 1:
“Explain a scalping strategy suitable for highly volatile stocks in the [market]. Focus on entry and exit rules, timeframes, and risk management.”
Step 2:
“Simulate this strategy for [Stock Ticker] using the past week’s data. Highlight successful and unsuccessful trades.”
Backtesting a Strategy
Prompt:
“Backtest a swing trading strategy using 50-day and 200-day moving averages as crossover signals for [Stock Ticker]. Provide detailed performance metrics, including win/loss ratio, average return per trade, and maximum drawdown.”
Follow-Up:
“How can this strategy be optimized for better results?”
Outcome:
Informs you of the strategy’s effectiveness and areas for improvement.
5. Prompts for Risk Management
Portfolio Diversification
Prompt:
“Analyze my portfolio consisting of [list of stocks or sectors]. Assess diversification and recommend adjustments to minimize risk while maintaining potential returns.”
Stop-Loss Strategies
Prompt:
“For [Stock Ticker], recommend a stop-loss level based on its average volatility and recent support levels. Provide reasoning for the selected level.”
Why This Works:
Offers actionable, calculated risk management decisions.
6. Prompts for Market Sentiment Analysis
Sentiment from News and Social Media
Prompt:
“Analyze sentiment for [Stock Ticker] from recent news and social media. Provide an overview of whether it’s predominantly bullish, bearish, or neutral.”
Follow-Up:
“What are the main drivers of this sentiment, and how has it shifted compared to the previous month?”
Institutional Activity
Prompt:
“Identify recent institutional buying or selling activity for [Stock Ticker] and discuss how it may impact future price movements.”
7. Prompts for Automation
Daily Trading Dashboard
Prompt:
“Generate a daily trading dashboard summarizing pre-market movers, high-volume stocks, top gainers/losers, and relevant news for [markets/sectors].”
Outcome:
Streamlines the start of your trading day with all relevant data in one place.
Tracking Watchlists
Prompt:
“Create a watchlist of stocks with the highest implied volatility for potential options trading opportunities. Include recent price changes and earnings dates.”
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