Online Stock Trading

November 18th, 2008 by admin

With all the different types of stocks newsletters out there, though, how do you know what to look for in a stocks newsletter? Here are a few tips.

Get clear on your goals
Before you start looking for a stocks newsletter, think through your trading goals and the approach you prefer. What time frame are you looking at for your trades — day trades, short term trades, long-term trades or a combination? Are you a trend-follower, trade-fader, swing-trader or something else?

Authors
As the old adage goes, “consider the source.” Anyone can take collect bits and pieces of information, throw up a webpage and start selling a stocks newsletter. Before you subscribe, though, do a little background check on the authors and editors to make sure they actually know what they’re talking about. Do they have a background in business, economics or finance? Have they tested their methods for picking stocks and their theories on investing? Have their past predictions been accurate and can they can they prove it?

Approach to trading
Most all stocks newsletters focus on a certain type of stock. Some target little-known high-yield stocks, others focus on day trading penny stocks. Since this information is usually part of the stock newsletters advertising, it’s not hard to find. What can be a little harder to define, though, is the newsletter’s approach to trading.

There are dozens of defined styles of trading out there, so each newsletter is bound to be a little different in its approach to picking stocks and trading them. Before you choose a newsletter, learn as much as you can about the methodology the writers follow. If the editorship’s strategies go against any commonly accepted trading wisdom are they up-front about it? For instance, maybe they don’t believe in maintaining a diverse portfolio. That’s fine as long as they let you know and can explain why.

Clarity
If you’re new to the stock market, you don’t want a newsletter that just tells you which stocks to pick without detailing why those stocks are good picks. In order to get better at choosing stocks on your own, you’ll want to be able to follow the writer’s logic step by step and see how they reached the conclusions they did. This goes double for overall investment and financial advice. What’s good advice for one type of investor might not be so great for another.

Recommendations and reviews
Major financial and business newspapers and websites are great places to find recommendations on stocks newsletters worth looking into. Another way to find the best stocks newsletter for you is to stop by a trading or investments forum online, explain what you’re looking for in a newsletter, and ask for recommendations. Once you’ve come up with a few, check the reviews.

When you know what to look for in a stocks newsletter, you can find the one that will meet your needs well and provide tips and advice that could be worth thousands. Get clear on your trading goals and style, list a few newsletters that might suit your needs, and learn a little more about each one to find the best stocks newsletter for you.