What is a Stock Picking service?
Stock picking is the situation in which an analyst or investor actually uses the systematic form of analysis to conclude that one particular stock will make a good investment and so, it should be added to the portfolio. The process can be very long or too short, but the whole thing will depend on the outlook of the analyst or investor for the price of the particular stock. The process of stock picking is very tough as there is never a foolproof way to find out what a stock’s price will do in the future. An investor needs to consider several factors so that he/she can actually predict this idea of future stock prices instead of relying on absolute guesswork. An analyst or analyst who uses any type of forecasting techniques must allow a slight margin error in the calculation simply because forecasting is not a science that the outcome can be exactly calculated. It is a revolutionary service method to invest and grow rich in the stock market. The basic target of the stock picking service is to achieve wealth easy for the users.
Here are some examples of investment newsletters that offer stock picking and advisory services.
How does the system work?
Initially, people interested in stock trading had to keep track of the market on their own to make the necessary transactions. They could also hire brokers, who did the work on the client’s behalf or they provided the investor with suggestions for a potential trade. The process was basically manual. With the advancement of technology, the entire business of stock market became internet oriented and the individual brokers lost their importance. The vacancy is now fulfilled by Stock Picking service providers. Stock Pickers are actually the people or group of people who provide with suggestions and education that are necessary to become successful in the stock business. Stock Pickers do not recommend the buying or selling of your stock, but they provide you with the indication of what the condition of a certain company might be on the long or short run and they also let you know what transaction they are making. These people have excellent experience related to the stock market and what they are buying or selling really matters! It is obvious that no one will spend money on a bad stock, and thus what an experienced person is doing is worth following.
The Stock Pickers publish their own newsletters, where they give exact description of their own transactions. Once you pay for the newsletter, you are able to know what the stock picker is doing and you too can follow that if you choose to. When you subscribe for the stock picking service, you do not have pour over financial pages for hours and try hard to identify as well as analyze the trends of the market. The stock picking service will do that for you. You just have to spend few minutes every day to review the forecasts made by the stock pickers and follow the recommendations and be ready to make the investment decisions. You will get the recommendations that are constantly refined and adjusted so that they reflect the changes in the market conditions. Reputed stock picking companies do not provide you with the computer generated stock picks, but they provide you with first hand recommendations that they gather simply by making the transactions on their own.
Benefits of stock picking services:
There are several things that have been responsible for making the stock picking system one of the favorable investment tools. They are:
- When you have a stock picking service to recommend the dos and don’ts, you need not to spend much time in following the market trend. You will get the summed up report and all you will need to do is to act accordingly.
- The stock pickers provide you with the information that they gather by investing their own money and thus you will get to know the exact status of a certain stock.
- As the recommendations provided by the stock pickers are “first hand” information, there is rare chance of running into a loss.
- The stock pickers provide you with all the details of their own transactions and thus you get to know which one are the loss maker as well as the profit making ones.
- The stock pickers will suggest you when to buy or when to sell your stock. The selling of stock is actually more important than buying as you can earn only by selling. They will tell you exactly when to sell so that you can have maximum returns.
- The money management system of the stock picking service providers will help you to stay fully invested as well as diversified.
- They will post all their transactions for the subscribers at the end of the day and thus you will have the whole night to decide whether or not to act according to their recommendations.
It is a myth that the stock picking service providers are actually paid by the companies so that their stocks are promoted to the traders. In reality, nothing like that can happen. As said earlier, the sock picking service providers provide their subscribers with the details of their own transactions. So, you can clearly see the outcome of a transaction and the companies cannot manipulate the stock market. The newsletters published by the stock picker consist of real transaction details and is thus authentic. You can follow the suggestions made by them or can simply ignore them. But you can be sure about the authenticity of the trading descriptions. A company can pay the stock picker to make positive comments on their behalf, but when the transaction will reflect the opposite, the reputation of the service provider will be at stake. No stock picker will ever invest on a drowning company just to get paid, that too for the result that will affect their reputation. So, it is nothing but a misconception that the stock pickers are paid to promote companies and their stocks.
Education provided by the stock picking services:
The average investor decides to buy or sell a stock simply because he or she “feels like” to do so. When you choose to have a stock picking service and pay for it, you are provided with the necessary education that will help you to make right decision. The experts of the service providers let you to know about the quality of the various companies in the market and at the same time what factors make the companies ascend or descend the stock chart. To make real money in stocks, you need to have the knowledge of how to pick the stocks effectively. You can blindly follow the suggestions provided to you, but your attempt will be more fruitful when you know the basic tricks of stock picking. Stock valuation is often considered to be very arcane as well as difficult. The fact is, most of the investors do not even bother to figure out that it is best to just compare their stocks in relation to their competitors to figure out what is normal and so, what is cheap. This technique of relative valuation can work extremely well in normal market climates. The stock picking service providers helps you to know about the stock valuation technique in detail and thus you can be safe in dealing with your money. The stock picker provides you with the reason for suggesting a certain stock and this thing is actually done in order to educate the investor about the market trend. Guidelines to make transactions in the stock market are also provided by the service provider. So, when you pay for the stock picking service, you can be sure that you will get to learn the things which are necessary for you to have a successful trading. You can ask questions and will get the required answers from your service provider.
The stock pickers will provide you with alerts and at the same time clarify the reason behind giving the alerts. There are some stock pickers who actually make suggestions and give the alerts on the basis of computerized analysis and they are considered to be of lower quality. The alerts that are accompanied by reasons are the authentic and profitable ones as you will have the goodness of extensive market research and great experience of the experts in them.
Updates and chat facilities:
These newsletters generally provide the investors with real time updates during market hours. The market is open from 9.30 am to 4.00 pm (EST) during which updates of all the transactions are made. You can follow them simply by staying on line. You can also go to the chat room where you will find the other investors and moderators busy in transactions. There are very strict guide lines that need to be followed when you are in the chat room. This is because real transactions take place in the chat room and if you come up with irrelevant questions and comments, the business will be hampered. You will receive the full transaction details from your stock picker at the end of the market hours and then you can decide about your own business. So, when the question is about the frequency of the updates that are provided by the stock pickers, the answer is “daily”.
As said, you can go to the chat room and have live discussions with the modulators as well as other investors. The only important thing is that you have to abide by the rules of the chat room to utilize the chat room facility. In case you fail to do so, you will simply be kicked out of the place. You can speak to your stock picking service provider as well, but the tremendous pressure of taking numerous calls make the thing worse. It is thus best to take the help of email to get the answer of your questions. Some service providers communicate with their clients with the help of video conference and that too is a great way of getting in touch with the experts.
All the stock picking services are payable. There is nothing called “free service”. Once you register to pay for the service, you are able to get access of the newsletter for a certain period of time. It may vary from company to company. You may subscribe for a certain (say a couple of months) according to your necessity. Both long term and short term subscription options are available. You can choose one according to your requirements. It may happen that you are not satisfied by the service that you get and then you can stop the subscription and cancel your account. It you are satisfied and wish to continue with the service, just subscribe for another month. You may also keep your account in dormant state for certain period. This becomes necessary when you plan to take a break from the stock business. You can ask your service provider not to cancel your account as you wish to return after the break. Some are of the idea that stock picking service providers want you (clients) to stay around and they make you to pay for that. It is partially true. They want you to stay around as that is how they will earn. But it is not totally true as payments from the subscribers are not the only way that they earn from. They do the trading and earn.
When you are going to put your steps in the stock business for the first time, it will be obvious that you do not have prior experience. You may have the theoretical knowledge of how the thing works, but the reality is totally different from what you have learned. You need to have some great support to show you the right way, else you may lose all that you invest. A stock picking service will provide you with the best possible suggestions and enable you to have successful trading. If you are serious about your career in the stock market, you can take the help of a investment newsletter and become a successful trader in the future. All you have to do is to find a great service provider and make use of what you learn.