Choosing A Stock Recommendation Service

Posted by Nick Niesen on November 8th, 2010

Many investors want to find good stock picks but don?t have the time or expertise to do their own analysis. For them, a service that offers software to find the picks or that posts the picks is a good solution.

There are many online stock trading sites to choose from, but narrowing down the field may seem time consuming and overwhelming. Not every online stock trading site on this list will work for you because some are stronger in one area, while weaker in another. We give our opinion on what we feel are the best tools and systems you can use to increase your stock trading profits.

Trading in General

Trading isn?t nearly as complicated as some people make it out to be. Trading Stocks using technical analysis requires a trading plan that outlines the requirements for entering and exiting trades. If you are new to stock trading, start with low lots of shares, and avoid jumping in with orders for 1000+.

You don?t need to know all of the technical details of how you buy and sell stocks, however it is important to have a basic understanding of how the markets work. The electronic markets use vast computer networks to match buyers and sellers, rather than human brokers. You still need a broker to handle your trades. Individuals don?t have access to the electronic markets.
Stocks

Day Trading

Day Traders are in and out of stocks rapidly. At the end of the day, they do not own any stocks. Holding for dear life to stocks that usually do well can bear disastrous results when they fall. The day trading avoids this risk. The requirements for account size are much larger for day trading, so most beginners avoid this type of trading.

Trading Time Frames

Don't fight the trend of the longer time frames, but if your trade is going against the major trend, beware that you won't want to stay in it for too long. It is important to take losses and not let a losing trade runaway while you hope it will turn in your favor later on.

Technical Analysis

For those of you who are involved in the stock market, technical analysis can be somewhat of a mystery. The great thing about technical analysis is it can see past the lies that we tell ourselves, which are some of the worst and the most difficult to combat, and that are told by others. Having the objectivity to use technical analysis to make us money sometimes is much easier said than done. This is one reason that using a stock pick service or software makes sense.

Services

Here is a small sampling of the types of stock pick services available.

www.skilltrader.org : Daily picks in a membership area. $1 for 2 week trial then $149 per month. Track record of 3 years which shows high profits and good winning percentages.
www.netstockpicks.com : Daily picks in a membership area. $75 per month. Track record of 7 years. Trades last just 3 days.

www.daytrading.nu: Software to find stocks for day trading. $100 per month. Track record of 5 years. Shows consistent daily profit.

www.stocktrading.nu: Software for finding mostly short term picks. 4 year track record. $85 per month.

Conclusion

Online stock trading sites offer investors a wide range of tools, research and services. Read the descriptions of the trading styles for each service to understand if their performance and style is right for you.