If you are new to the stock market it may be best to use a stock picking service. Since you will have no idea what to buy and sell you will probably be relying on friends or tips or even worse, Jim Cramer and his Mad Money TV show.
Make no mistake about it, making money buying stocks is not easy! Don’t fool yourself thinking you can just buy the latest fad stock and you will make money.
There are two main methods for picking stocks: Fundamental and Technical.
Fundamental: stock picking involves analyzing a companies income and cash flows in an attempt to determine if its a good buy or not. Assuming for a minute that you have any idea how to do that, it still comes back to timing.
You can pick a great stock with excellent fundamentals but lose money because the market disagrees with your analysis. This way of picking stocks is best left to the professionals of pension funds etc.
Technical Analysis: attempts to pick a stock based upon “technical” factors such as moving averages or chart patterns. This is the method that most stock picking services use and you should learn as well, if you are going to try and do it on your own.
If you do not have the time or the interest in researching how to use technical analysis to pick a stock then you are better off using a professional stock picking service.
The best stock picking services will teach you how fish as well as give you the fish. In this regard that is why I can recommend Microcap Millionaires and Jason Bond. Both are professionals and have been making their subscribers money for many years.
Don’t under estimate the psychology of investing/trading, when you go with a professional stock picking service, this person has gone through all the ups and downs and know how to handle them. You will not have to worry about that if you can ride his coattails.
Please see my reviews on recommended Stock Picking Service Newsletters:
– Robert Walsh