Happy Monday all.

Every day, you hear stories about this of that AI stock shooting to the moon.

Many of you want to get into investing but are not sure how.

You're lucky.

Today, there are plenty of tools out there to help you get into it.

There's everything from completely automated AI based tools which do everything for you, which I like to call DIFM (or Do It For Me) all the way to super light touch tools which let you do it yourself (DIY)

If you've even done a cursory look into it (and who hasn't been seeing the massive gains some of these stocks are seeing (NVIDIA anyone?) you’ve probably noticed there are tons of platforms out there, each offering different features, benefits, and strategies.

Choosing the right AI-driven investing tool can make a huge difference in how successful your investment journey turns out.

From robo-advisors to stock-picking algorithms, AI-powered platforms offer everything from portfolio management to real-time market insights. But how do you know which one is right for you?

Let’s break down what you need to consider when picking the best AI-driven investing tool.

HOW TO PICK?

1. Understand Your Investment Goals

Before you even start looking at AI-driven investing tools, you need to understand your own goals. Are you looking for long-term growth? Do you want steady income through dividends? Or are you just trying to learn the market? Different tools are designed for different purposes.

A lot depends on where you are in your life, how much money your have, and your propensity for risk.

• Long-term growth: Some platforms focus on building a diversified portfolio for long-term wealth accumulation.
• Dividend income: Other tools might help you focus on stocks with steady dividend payouts.
• Short-term trading: For more active investors, there are AI tools that focus on identifying short-term market opportunities.

Knowing what you’re aiming for will help narrow down your options.

2. Assess Your Risk Tolerance

Everyone’s risk tolerance is different. Some people are comfortable with higher-risk investments in exchange for the potential of higher rewards, while others prefer a safer, more stable approach. When choosing an AI-driven investing tool, make sure it aligns with your comfort level when it comes to risk.

• Robo-Advisors for Low Risk: If you're risk-averse, you might prefer a robo-advisor like Betterment or Wealthfront that automatically invests in a diversified, low-risk portfolio tailored to your needs.
• Active Traders for Higher Risk: If you have a higher risk tolerance, tools like Trade Ideas or Trefis can help you actively trade stocks and make informed decisions based on predictive analytics.

3. Evaluate Key Features and Services

Different AI investing tools offer different features, so think about what’s most important to you. Here are some common features to look out for:

• Portfolio Management: AI can automatically manage and rebalance your portfolio based on your goals and risk tolerance. Robo-advisors like Betterment do this well.
• Stock Picking: Tools like Trade Ideas use AI to suggest individual stocks based on real-time market data and trends.
• Tax Optimization: Some platforms, like Wealthfront, offer tax-loss harvesting to help you minimize the amount of taxes you pay on your investments.
• Real-Time Alerts: AI tools like Zignaly provide real-time market alerts, so you can act fast on emerging opportunities. I personally love this idea since there are plenty of investors out there that you can follow - maybe you won't be able to trade at the same level as them, but it can help.
• Educational Resources: If you’re new to investing, some platforms offer AI-powered tutorials and educational materials to help you understand the market.

4. Compare Costs and Fees

One of the biggest advantages of AI-driven investing tools is that they’re generally cheaper than traditional financial advisors. But fees still vary across platforms, so it's important to compare them.

• Robo-Advisors: Tools like Betterment or Wealthfront often charge between 0.25% to 0.50% annually on assets under management.
• Stock Picking Platforms: Some tools, like Trade Ideas, might have a flat subscription fee or charge based on the number of trades executed.
• Hidden Fees: Look out for hidden costs, like withdrawal fees, trade fees, or minimum investment amounts, that could eat into your profits.

5. Consider the Level of Control You Want

Some AI tools are fully automated, meaning they make decisions for you based on the data they process. Others offer a more hands-on approach, where you can adjust or approve each investment decision.

• Fully Automated Tools: Platforms like Wealthfront and Betterment are ideal if you want to set it and forget it. They’ll automatically invest your money and rebalance your portfolio as needed.
• Hybrid Tools: Tools like Zignaly allow you to manually approve trades while benefiting from AI’s insights and recommendations.
• Manual Stock Picking: If you prefer more control, AI tools that provide recommendations, like Trade Ideas, allow you to make the final decision on what to buy or sell.

6. Check Reviews and Security

Once you’ve narrowed down your choices, it’s essential to check the platform’s reputation. Look at customer reviews, ratings, and whether the platform has a proven track record of success.

• Security Features: Ensure the platform has robust security features like encryption, two-factor authentication, and insurance coverage in case of fraud.
• User Reviews: Websites like Trustpilot or Reddit can give you a good sense of how other investors feel about the platform. Are they happy with the service? Do they feel secure using the tool?

Or, let's have a little chat with our fav AI chatbot on this...

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YOU: Hey, I’ve been hearing a lot about AI-driven investing tools, but I’m still not sure why I should bother. Can’t I just follow stock tips from experts or track market trends myself?

AI: That’s a common question, and I get why you’d think that. Following stock tips or tracking market trends can work to an extent, but the real advantage of using AI for investing is that it taps into way more information than you ever could on your own. Plus, it processes that data much faster than any human could, giving you better insights and helping you make smarter decisions. Want to know more about how it works?

YOU: Sure, but I don’t see how AI can really do that much better than stock tips from experts.

AI: Let’s take stock tips, for example. While they might be helpful, they’re usually based on one person’s perspective or a handful of data points. AI, on the other hand, can analyze massive amounts of data in real time—everything from financial reports, stock prices, market trends, and even social media sentiment. It’s not just looking at a few key indicators; it’s looking at thousands of pieces of data all at once to give you a more comprehensive view of the market.

YOU: Okay, but aren’t market trends and reports enough? Why do I need AI if I can just track that myself?

AI: Tracking trends manually can definitely help, but it’s time-consuming, and you might miss out on key data points. AI can do all of that for you much faster and with a much broader reach. It doesn’t just look at a few metrics—it analyzes historical patterns, current events, trading volumes, and even how other investors are reacting. And it does all of this in real-time, constantly updating its analysis as new data comes in.

YOU: So, AI just looks at more data faster. But does that really help me make better decisions?

AI: Absolutely! Imagine trying to read hundreds of financial reports, news articles, and social media discussions in a day—that’s impossible for any human. But AI does exactly that in seconds. It not only processes this data, but it can spot trends and make predictions based on historical patterns that might not be obvious to you or me. For instance, AI could notice that every time a certain industry experiences a specific event, stock prices tend to rise or fall. It gives you insights before most people even realize what’s happening.

YOU: Okay, but what about emotional decisions? Sometimes people panic and make bad calls when the market fluctuates. Can AI help with that?

AI: That’s actually one of AI’s biggest advantages! AI doesn’t have emotions. It doesn’t get caught up in the hype or panic that can cloud human judgment. When the market fluctuates, AI sticks to the data. It helps you avoid emotional, knee-jerk reactions like selling during a dip out of fear. Instead, it looks at the bigger picture and helps you stay on course with a long-term strategy, which is often much more profitable than reacting to short-term volatility.

YOU: I can see how that would help. But what if I like having control over my investments? Wouldn’t AI take that away?

AI: Not at all! AI-driven tools come in different forms, so you can choose the level of control you’re comfortable with. If you like being more hands-on, AI can provide recommendations, and you can still make the final call. You get all the insights and data analysis, but you’re still in the driver’s seat. On the other hand, if you’d rather have the AI handle things for you, there are platforms that offer fully automated portfolio management. It’s totally up to you.

YOU: That sounds flexible. But isn’t it risky to trust AI with my investments?

AI: It might sound risky at first, but AI is actually really good at managing risk. Because it’s constantly analyzing huge amounts of data, AI can assess the risk of individual stocks, sectors, and your entire portfolio. It can suggest diversifying your investments to reduce exposure to any one company or industry, making your portfolio more stable. Plus, AI can spot patterns of volatility early, so it can recommend adjustments before things get too risky.

YOU: So AI’s not just for picking stocks, but managing risk too?

AI: Exactly! AI isn’t just a stock picker—it’s a full-on investment advisor. It can help you build a balanced portfolio, monitor risk levels, and even optimize for things like tax efficiency or dividend income. For example, AI can suggest reallocating your assets if it notices that one sector is becoming too volatile, or it might recommend stocks that align with your long-term goals, like retirement or buying a house.

YOU: I see. And what about keeping up with the news? I don’t have time to follow every update.

AI: That’s where AI really shines. It can process news in real time—everything from breaking news to market reports to social media buzz. Not only does it digest the information, but it also gives you context. Instead of just hearing about a stock drop, AI can tell you why it happened, whether it’s a short-term blip or part of a larger trend, and what you should do about it. You get the information without the overwhelm.

YOU: Wow, okay, I’m starting to see why AI would be useful. It’s more than just buying and selling stocks—it’s like having a full team of analysts working for me.

AI: Exactly! AI is like having a personal financial advisor, risk manager, and market analyst all rolled into one. It’s constantly working behind the scenes, making sure your investments are optimized and protected. You get better insights, faster decisions, and a lot less stress!

YOU: I like the sound of that. What’s the first step if I want to try this?

AI: Start by defining your investment goals and the level of control you want. Then, look for AI-driven investing tools that match your needs—whether it’s fully automated robo-advisors or AI stock-picking platforms that let you stay hands-on. Once you’re set up, the AI will take care of the heavy lifting, helping you make smarter, faster, and more informed investment decisions.

YOU: Thanks, ChatGPT. I think I’m ready to give AI investing a try!

AI: You’re welcome! With AI, you’ll have an edge in the market, making more informed decisions with less effort. Good luck, and let me know if you need any more advice along the way!

IN SUM

There are some people who want more controls over the investments and trading, and those who can trust the AI.

There are those who have a higher risk tolerance and those who don't.

There are those who want short term gains and others who take the long view.

(Personally, I perfer the short-term gain) :)

Do you have questions or need more tips on choosing the right AI-driven investing tool?

Drop me an email ben@10xyou.us​

I’d love to hear about your experiences and any feedback you have.

See you next week!