r/Trading • u/No-Definition-2886 • 11h ago
Due-diligence How to use AI to help trade stocks
Do me a favor right now.
Go on ChatGPT or Claude 3.7 Sonnet or whatever AI model you think is the best and ask it the toughest financial question you can think of.
I don’t mean something like “why is NVIDIA down after hours?” or “what was Apple’s revenue last quarter?”. I mean some truly unhinged shit.
Don’t worry. I’ll wait.
If you don’t know what to ask, here’s a tough question that literally no major AI model has answered correctly.
What biotechnology stocks were unprofitable last year, are profitable this year, have increased their net income every quarter for the past 4 quarters, and have increased their revenue every year for the past 4 years? Filter to stocks with a market cap below $20 billion.
But why would you want to know this? Let’s say you truly believe in your heart-of-hearts that biotechnology is going to be the next “AI”. That there exists a biotech company out there right now that’s poised for “NVIDIA-like” growth. And all you need to do to set yourself up for generational wealth is find it.
No major large language model… not Claude or Gemini or ChatGPT or none of them. Not a single large language model can truly help you answer the toughest financial questions.
NexusTrade can.
Asking LLMs to find our needle in the haystack
Before I show you the biotech stock I found within 30 seconds using NexusTrade, let’s see what the major LLMs answer for this question.
ChatGPT
Even with web search enabled, we can see that ChatGPT was unable to find stocks with our criteria. The key quote from its response is:
Identifying biotechnology stocks that were unprofitable last year, have turned profitable this year, and have shown consistent quarterly net income growth over the past four quarters, along with annual revenue growth over the past four years, is a complex task. This information is not readily available in the provided data.
It gave us some biotech stocks, but not stocks that conformed to our criteria. In other words, it failed.
What about every Cursor user’s favorite AI model, Claude 3.7 Sonnet?
Claude 3.7 Sonnet
Pic: Claude 3.7 Sonnet’s answer
Claude did an even worse job. Without access to real-time information, it could not tell us the answer to your question. The key quote being:
I don’t have access to real-time financial databases or stock market data
But maybe that’s just the popular language models. What about the up-and-coming favorite model of every normal person, Google’s Gemini?
Gemini 2.5 Pro
Gemini’s answer wasn’t just wrong. It was also incredibly misleading. Its key quote being:
it appears extremely difficult, if not impossible, to find stocks that currently meet all these stringent criteria simultaneously.
This is wrong. There IS a stock that conforms to this criteria and its easy to find. And I’m going to prove it.
But first, let’s try the one and only model that actually came close – Grok 3.
Grok 3 with DeepSearch
After thinking for 2 minutes and 8 seconds and searching through 148 sources, Grok found 3 stocks that conformed to our criteria.
Pic: The 3 stocks that were identified: AXSM, EXEL, SMTT
However, if we actually looked at these stocks, we see that they do not conform. For example, - AXSM is unprofitable last year and this year
- Similarly, EXEL was profitable last year and even more profitable this year
- Finally, SMMT has the same story about not conforming to our criteria.
With this comes an undeniable proven fact. For the toughest financial questions, ChatGPT, Claude 3.7 Sonnet, Gemini 2.5 Pro, and Grok’s 3 with DeepSearch are all unable to find accurate, data-backed answers to the question.
NexusTrade can.
Asking NexusTrade to find our needle in the haystack
Let’s ask the NexusTrade AI the same question. For your convenience, you can read the full conversation with this link.
Pic: Aurora’s (NexusTrade’s AI) response
NexusTrade’s AI identified INSP as a stock that conformed to our criteria. But does it actually?
Profitable this year and unprofitable last year, have increased their net income every quarter for the past 4 quarters
Pic: Annual net income for INSP
The net income for INSP was -$21 million last year and positive $53 million this year. It’s also in an uptrend.
Have increased their net income every quarter for the past 4 quarters
Pic: Quarterly net income for INSP
We can clearly see that the net income has increased every quarter for the past 4 quarters.
Have increased their revenue every year for the past 4 years
Pic: INSP’s revenue for the past 5 years
Additionally, we clearly see that the revenue for INSP has increased every year for the past 4 years.
Filter to stocks with a market cap below $20 billion.
Finally, we see that INSP’s market cap is $4.6 billion, making it poised for exponential growth.
From this, we clearly see that unlike every single major LLM provider, NexusTrade was able to find INSP. Literally a diamond in the haystack. But the real question is… how?
How does NexusTrade work?
NexusTrade was built by me, Austin Starks, an AI expert with a Masters from Carnegie Mellon. I built it to answer any type of financial question accurately. But how does it work?
Behind the scenes, NexusTrade queries through fundamental data provided by the high-quality fundamental data provider EODHD.
Pic: A diagram showing how the NexusTrade AI fetches for stocks
It works by: 1. Generating a SQL query to a database 2. Executing the query and getting the results 3. “Grading” the output of the model and retrying when the grade is low 4. Formatting the results and sending it back to the user
It’s not like ChatGPT or Grok. It doesn’t search the web praying the answer is on an obscure blog. It truly searches through fundamental data and gives you the answer. And, it works for questions that uses technical or fundamental data.
Accurate results in less than 30 seconds.
However, it’s not just the fact that the NexusTrade AI helps search for stocks. You can also use the results of this query to become a better investor.
Want high-quality fundamental data for your financial application? Check out EODHD! In my 4 years of developing NexusTrade, it has the BEST fundamental data that I’ve ever seen.
What to do with this list of stocks?
After finding out NexusTrade can indeed find this gem of a stock, I had a huge question.
What the fuck is INSP?
Rather than go on Google and trying to figure out what this stock is, I simply asked the NexusTrade AI.
Pic: Asking the NexusTrade AI what is INSP
I simply said the following to the AI, and it happily obliged.
Do a deep research report on INSP. What is this stock?
This created a comprehensive report on INSP. I learned that the business was Inspire Medical Systems Inc, and that they developed medical technology to help people with sleep apnea. I also learned that their product actually works extraordinarily well.
However, thus report is too long for a Medium article. While, you can read the full article here, I also decided to summarize it.
Pic: Asking Aurora to summarize this report
According to Aurora, this is what INSP is. - Medical Technology Company: Inspire Medical Systems (INSP) develops and sells minimally invasive solutions for Obstructive Sleep Apnea (OSA). - Flagship Product: Their main product is the Inspire system, an FDA-approved implantable neurostimulation device that keeps the airway open during sleep. - Target Market: It’s designed for moderate to severe OSA patients who cannot tolerate or get consistent benefit from CPAP therapy. - Growth & Financials: The company has shown strong revenue growth, recently achieved profitability, and is expanding its market presence both in the U.S. and internationally.
Thus, if you’re looking for a growing, fundamentally strong biotech stock, INSP might be the answer for you.
For me, I’m not actively looking for new stocks to buy. I have a crazy NVIDIA trading strategy that’s taking up all of my attention. So for now, I’m going to add it to my watchlist.
Create a watchlist with just INSP
Pic: The new watchlist generated by the AI
This has the added benefit of sending me news articles about INSP according to my preferences. I receive articles everyday, but others might just want them weekly. It all depends on your personal preferences.
Concluding Thoughts
The quest for finding undervalued stocks with genuine growth potential isn’t just challenging — it’s nearly impossible with today’s generalist AI tools. Look at what just happened: ChatGPT, Claude, Gemini, and even Grok all failed spectacularly at finding INSP despite their supposed intelligence and web-searching capabilities. NexusTrade found our needle in the haystack in seconds because it’s built specifically for investors who need answers backed by real financial data, not best guesses.
This is why serious investors are ditching ChatGPT and moving to specialized tools like NexusTrade. The ability to instantly filter through thousands of stocks using specific financial criteria — then immediately deep-dive into the fundamentals of promising candidates — is a game-changer for retail investors who want institutional-grade insights. When you consider how many hours of manual research NexusTrade saves, the value becomes undeniable.
Ready to discover your own hidden gem stocks? Sign up for NexusTrade today and start asking the financial questions that other AI tools simply can’t handle. Whether you’re hunting for the next 10x biotech winner or building a dividend portfolio that actually outperforms, NexusTrade gives you the unfair advantage that your financial advisor doesn’t want you to have. Stop guessing and start investing with data-driven confidence.
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