{"id":890633,"date":"2026-02-06T23:12:09","date_gmt":"2026-02-07T05:12:09","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2026\/02\/06\/ai-will-remove-the-worst-human-decisions-from-trading-heres-why-its-a-good-thing\/"},"modified":"2026-02-06T23:12:09","modified_gmt":"2026-02-07T05:12:09","slug":"ai-will-remove-the-worst-human-decisions-from-trading-heres-why-its-a-good-thing","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2026\/02\/06\/ai-will-remove-the-worst-human-decisions-from-trading-heres-why-its-a-good-thing\/","title":{"rendered":"AI Will Remove the Worst Human Decisions From Trading. Here\u2019s Why It\u2019s a Good Thing"},"content":{"rendered":"<div>\n<div>\n<div>\n<p><img decoding=\"async\" src=\"https:\/\/cimg.co\/wp-content\/uploads\/2026\/02\/06104011\/Image-109-150x150.jpg\" alt>\n                    <\/p>\n<p>CEO of Aurum<\/p>\n<div>\n<p>Bryan Benson<\/p>\n<div>\n<div>\n<p><img decoding=\"async\" src=\"https:\/\/cimg.co\/wp-content\/uploads\/2026\/02\/06104011\/Image-109-150x150.jpg\" alt>\n                <\/p>\n<div>\n<div>\n<p>CEO of Aurum<\/p>\n<p><span>Bryan Benson<\/span><span class><img decoding=\"async\" src=\"https:\/\/cryptonews.com\/wp-content\/themes\/cryptonews\/images\/verification.svg\" alt=\"Verified\"><\/span>\n                    <\/p>\n<\/p><\/div>\n<div>\n<p>Part of the Team Since<\/p>\n<p>Feb 2026<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div>\n<p>About Author<\/p>\n<p>A Web3 pioneer with 27 years of experience, Bryan has led initiatives in crypto, blockchain, and DeFi across global markets.<\/p>\n<\/p><\/div>\n<\/div><\/div>\n<\/p><\/div>\n<div>\n<p>Last updated:\u00a0<\/p>\n<p><time datetime=\"2026-02-06T10:47:14+00:00\">February 6, 2026<\/time>\n        <\/p>\n<\/p><\/div>\n<\/div>\n<p><img fetchpriority=\"high\" width=\"1456\" height=\"816\" src=\"https:\/\/cimg.co\/wp-content\/uploads\/2026\/02\/06094813\/1770371293-image-1770371266070_optimized.jpg\" alt decoding=\"async\"  ><\/p>\n<p>Did you know that between 70% and 80% of retail traders <a href=\"https:\/\/pmsbazaar.com\/News\/pmsbazaar\/70_per_cent_of_Day_Traders_Lose_Money_Latest_SEBI_Study_Finds\" target=\"_blank\">lose<\/a> money? <\/p>\n<p>In fact, <a href=\"https:\/\/cryptonews.com\/tags\/mica\/\">regulators in Europe<\/a> and the U.S. have confirmed this figure so many times that brokers now regularly <a href=\"https:\/\/www.esma.europa.eu\/sites\/default\/files\/library\/esma35-43-1912_cfd_renewal_3_-_notice_en.pdf?\" target=\"_blank\">display<\/a> it as a disclaimer on their websites.<\/p>\n<p>The typical narrative puts the blame on the traders. They lack discipline, chase losses, and panic at the wrong moment. Which, in and of itself, is not entirely wrong. <\/p>\n<p>But that explanation does miss the architectural problem underneath. Which is that retail platforms were never designed to help users make good decisions. On the contrary, they were designed to make sure users made <em>frequent<\/em> decisions.<\/p>\n<p>Every price alert, every red or green indicator, every buy and sell button places the trader directly inside a high-pressure moment where human psychology works against the user.<\/p>\n<p>Sure, retail traders are emotional. But platforms are the ones who designed the emotional triggers and called it market access. However, for the first time, there may be a way out of that trap.<\/p>\n<h2><strong>Why Losses Hurt More Than Wins Feel Good<\/strong><\/h2>\n<p>In 1979, Daniel Kahneman and Amos Tversky published a theory that would eventually earn Kahneman a Nobel Prize. Prospect theory demonstrated that humans do not weigh gains and losses equally.<\/p>\n<p>A loss feels roughly twice as painful as an equivalent gain feels rewarding.<\/p>\n<p>Kahneman himself used to illustrate this with a coin flip exercise. He would offer students a gamble where tails meant losing ten dollars. Most students demanded at least twenty dollars on the winning side before they would accept the bet.<\/p>\n<p>On paper, a fifty-fifty shot at ten dollars either way should be a neutral bet. But students would not accept it unless the upside doubled the downside.<\/p>\n<p>This asymmetry explains a lot of what happens in volatile markets. After a win, confidence grows exponentially, and traders then increase position sizes and ignore the risk limits.<\/p>\n<p>The worst part, though, is what happens after a loss. The pain triggers a desperate need to recover, which leads to revenge trades, doubled positions, and abandoned stop-losses.<\/p>\n<figure>\n<p>\n<iframe loading=\"lazy\" title=\"The riddle of experience vs. memory | Daniel Kahneman\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/XgRlrBl-7Yg?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/p>\n<\/figure>\n<p>Watch <a href=\"https:\/\/cryptonews.com\/news\/bitcoin-price-tech-slump-ripples-through-asia-market-open\/\">Bitcoin drop<\/a> 15% at 3 a.m. and you will feel Kahneman\u2019s theory in your chest. The rational move is to close the app and reassess in the morning. The human move is to stare at the screen, heart pounding, finger hovering over the sell button, convinced that doing <em>something<\/em> will make the pain stop.<\/p>\n<p>And the established platforms don\u2019t try to calm these impulses. They amplify them. It explains why 75% of <a href=\"https:\/\/cryptonews.com\/cryptocurrency\/crypto-day-trading-strategies\/\">day traders<\/a> <a href=\"https:\/\/faculty.haas.berkeley.edu\/odean\/papers\/Day%20Traders\/Day%20Trading%20and%20Learning%20110217.pdf\" target=\"_blank\">quit<\/a> within two years (and why the other 25% probably should have).<\/p>\n<h2><strong>The Better Use Case Was There All Along<\/strong><\/h2>\n<p>Too much of the <a href=\"https:\/\/cryptonews.com\/exclusives\/how-ai-and-tokenized-dollars-will-anchor-the-2026-global-economy\/\">AI conversation in finance<\/a> is focused on prediction. Can the algorithm beat the market? Can it catch patterns that humans cannot?<\/p>\n<p>And most of those same conversations treat and think about AI as some sort of replacement for human judgment. <\/p>\n<p>But there is a better use case for <a href=\"https:\/\/cryptonews.com\/cryptocurrency\/ai-trading-bots\/\">AI in trading<\/a> altogether. AI as a behavioral infrastructure is perfect to act as a buffer between traders and the exact moments where they (statistically proven) make terrible decisions.<\/p>\n<p>When AI handles execution, the user never sits there during a volatile session, wondering whether to hold or sell. Entry conditions, position sizes, and exit rules are already locked in. When something happens, the system just follows the predetermined rules, and the user just finds out what happened later.<\/p>\n<p>The emotional window where panic or greed would have taken over simply does not exist.<\/p>\n<p>Market complexity gets all the attention, but the biggest source of risk has always been human behaviour under stress. AI offers a way to reduce that risk by redesigning how and when decisions are made, not by removing people from the process.<\/p>\n<p>The human is still in the loop, just earlier. AI moves judgment upstream, away from the heat of the moment. Users still set goals, define risk tolerance, and choose strategies. <\/p>\n<p>What they no longer do is make split-second calls at 2 a.m. when the market gaps against them and their nervous system screams at them to do something.<\/p>\n<p>Some platforms already work this way. They let the user set the intent while the system handles everything else: strict risk protocols, continuous adaptation, and execution.<\/p>\n<h2><strong>2026 Could Finally Level the Playing Field<\/strong><\/h2>\n<p>Right now, roughly <a href=\"https:\/\/www.lse.ac.uk\/research\/research-for-the-world\/ai-and-tech\/ai-and-stock-market#:~:text=Estimates%20suggest%20that%20between%2060,Automated%20Trading%20Systems%20(ATS).\" target=\"_blank\">60\u201370%<\/a> of trading volume in major equity markets is algorithmic. Institutional investors have used tools like natural language processing since the \u201890s to parse news, filings, and sentiment data before retail traders even knew the headlines existed. <\/p>\n<p>Retail has been competing against this for decades without any of the same tools. Only now has building these systems become cheap enough for anyone outside a trading desk to access them.<\/p>\n<p>Cloud computing, exchange APIs, and accessible machine learning frameworks have collapsed the cost of building sophisticated execution systems. What once required a team of quants and proprietary hardware can now run on consumer-grade platforms or even local models.<\/p>\n<p>The question for 2026 is whether retail platforms will actually adopt this new trend to create new products  or keep profiting from emotional trading only.<\/p>\n<p>That shift probably won\u2019t feel in any way revolutionary. On the contrary, it will feel like something obvious in hindsight.<\/p>\n<p>The volatility will still be there, and the losses will still happen. But the self-inflicted damage that comes from trading under emotional duress could finally become preventable.<\/p>\n<p>And that, more than any prediction algorithm, might be what separates the next generation of retail traders from the 75% who quit within two years.<\/p>\n<p><em>Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of Cryptonews.com. This article is for informational purposes only and should not be construed as investment or financial advice.<\/em><\/p>\n<p>\n                                    <a href=\"https:\/\/news.google.com\/publications\/CAAqKQgKIiNDQklTRkFnTWFoQUtEbU55ZVhCMGIyNWxkM011WTI5dEtBQVAB?ceid=US:en&#038;oc=3\" target=\"_blank\"><\/p>\n<p>                            <svg width=\"20\" height=\"16\" viewBox=\"0 0 20 16\" fill=\"none\">\n                            <path d=\"M19.6 5.36C19.6 5.48 19.6 5.66 19.54 5.78L17.2 12.8V5.6C17.2 4.94 16.66 4.4 16 4.4H12.82L12.52 3.8L11.86 2.36L15.34 3.32L18.58 4.16C19.18 4.28 19.6 4.82 19.6 5.36Z\" fill=\"#FF4131\" \/>\n                            <path d=\"M15.4 0.799997V3.26L11.92 2.3L11.74 1.88C11.44 1.28 10.72 0.979997 10.12 1.22L4.59998 3.38V0.799997C4.59998 0.499997 4.89998 0.199997 5.19998 0.199997H14.8C15.1 0.199997 15.4 0.499997 15.4 0.799997Z\" fill=\"#03A846\" \/>\n                            <path d=\"M12.82 4.4H4.00002C3.34002 4.4 2.80002 4.94 2.80002 5.6V11.42L0.520024 6.5C0.460024 6.26 0.400024 6.08 0.400024 5.9V5.84C0.400024 5.3 0.700024 4.82 1.24002 4.64L4.60002 3.32L10.06 1.22C10.72 0.979997 11.44 1.28 11.68 1.88L11.86 2.3L12.52 3.74L12.82 4.4Z\" fill=\"#FDBD04\" \/>\n                            <path d=\"M17.2 5.59999V14.6C17.2 15.26 16.66 15.8 16 15.8H4.00005C3.34005 15.8 2.80005 15.26 2.80005 14.6V5.59999C2.80005 4.93999 3.34005 4.39999 4.00005 4.39999H16C16.66 4.39999 17.2 4.93999 17.2 5.59999ZM9.40005 9.79999H7.00005V11H7.90005C7.60005 11.36 7.18005 11.6 6.70005 11.6C5.86005 11.6 5.20005 10.94 5.20005 10.1C5.20005 9.25999 5.86005 8.59999 6.70005 8.59999C7.12005 8.59999 7.48005 8.77999 7.78005 9.01999L8.62005 8.17999C8.14005 7.69999 7.48005 7.39999 6.70005 7.39999C5.20005 7.39999 4.00005 8.59999 4.00005 10.1C4.00005 11.6 5.20005 12.8 6.70005 12.8C7.90005 12.8 8.86005 12.08 9.22005 11C9.34005 10.7 9.40005 10.4 9.40005 10.1C9.40005 9.97999 9.40005 9.91999 9.40005 9.79999ZM14.8 7.39999H10.6V8.59999H14.8V7.39999ZM16 9.79999H10.6V11H16V9.79999ZM14.8 12.2H10.6V13.4H14.8V12.2Z\" fill=\"#0284FE\" \/>\n                            <\/svg><br \/>\n                                                                    Follow us on Google News                                    <\/a>\n                                <\/p>\n<\/p><\/div>\n<p><a href=\"https:\/\/cryptonews.com\/exclusives\/ai-will-remove-the-worst-human-decisions-from-trading-heres-why-its-a-good-thing\/\" class=\"button purchase\" rel=\"nofollow noopener\" target=\"_blank\">Read More<\/a><br \/>\n Dion Klemp<\/p>\n","protected":false},"excerpt":{"rendered":"<p>CEO of Aurum Bryan Benson CEO of Aurum Bryan Benson Part of the Team Since Feb 2026 About Author A Web3 pioneer with 27 years of experience, Bryan has led initiatives in crypto, blockchain, and DeFi across global markets. Last updated:\u00a0 February 6, 2026 Did you know that between 70% and 80% of retail traders<\/p>\n","protected":false},"author":1,"featured_media":890634,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23072,2097],"tags":[],"class_list":["post-890633","post","type-post","status-publish","format-standard","has-post-thumbnail","category-remove","category-worst"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/890633","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=890633"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/890633\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/890634"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=890633"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=890633"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=890633"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}