How AI Can Strip Emotion From Retail Trading Decisions and Reduce Costly Mistakes

The article argues that most retail traders lose money because platforms push them into making repeated, emotionally driven decisions during volatile moments. Drawing on prospect theory and the growth of algorithmic execution, it suggests AI can move human judgment to earlier, calmer stages, where users define goals and risk while automated systems handle entries, exits, and position sizing. The author notes that institutional investors have long relied on such tools and contends that broader adoption by retail platforms in 2026 could significantly limit self‑inflicted losses without removing humans from the process.