There are many factors to consider before choosing a stock picking service, here is a list of question you need to ask:
1. What is the time frame of the service?, ie do they specialize in day trading, swing trading etc. Does this match up with what you want or are able to do? Don’t just sign up for a service because they have a good track record but you have to place trades during the day and you are not able to do that.
2. What is their track record? How long have they been in business? Do they have verifiable results? Can you contact anyone who is using their service to see if they are happy with it?
3. Do they provide research or reasons for why they are recommending a stock? Are they backing it up with solid reasons that you understand and can learn from? Or are they just telling you buy this or that stock and just trust them?
4. Do they have a trial subscription? A try before your buy? What is their cancellation policy?
5. Are they being paid to promote stocks? This is primarily only relevant to penny stocks that are easily manipulated. It may be difficult to tell if this is the case but if he is recommending stocks that do not seem to have good technical or fundamental reasons to buy then maybe he has an ulterior motive.
6. How often do they have updates? Are they specific recommendations telling to exactly when to get in and when to exit? Not all of them do, some will just give you a stock to buy but not at what price and just as important when to exit.
7. Is there a chat room where you can connect with other traders? This can be very valuable, there may be some very experienced traders who can give you advice or you can bounce ideas off of. You can get some great picks from the people in the chat rooms and you can usually trust them as they have nothing to gain giving you their ideas. This is more for active swing traders and day traders.
8. Can you contact them if you have questions or need some advice? If you can than you can be much more confident that the person is honest and wants you to succeed rather than just take your money.
Remember this is your hard earned money at stake, make sure you feel comfortable with them and their style of trading. Is this person interested in seeing you succeed? or are you just a paycheck to them.
Here are the two I use for most of my trades:
Regardless of which Stock Picking Service you use or if even if you choose to go it alone, please download my free eBook: “The 7 Habits of Millionaire Traders”
You can read all my reviews on stock picking services here:
If you have any questions feel free to contact me.
– Robert Walsh