Monday, January 3, 2011

Stock picking websites, are they really worth it?

It seems like they pop up like mushrooms in a forest, and their longevity is about the same. Stock (or any equity you can trade) picking websites that is. What is it? For the lazy traders among us :P they are 'valuable tools' or at least that's what they like to be seen. Here's how it generally works. You pay a website a monthly fee of around $200 (!) and they claim to find the best stocks, options, etfs etc to pick for your portfolio. Of course this is never for the 'swing or day trader' because the equity might lose value in the short term BUT the people from these magical websites claim if you hold on long enough your portfolio could add about over a 100% value over the course of time. Of course making a website like that is fairly simple. Their trade robots pick out the 'most likely' stock to rise in value, the software will then make a list of the results and send them to you in a your set time frame newsletter. This is the newsletter you pay the fee for by the way. But the bottom-line is, does this actually work? Maybe, sometimes I assume, you can't be wrong all the time. And when it is right, you, as the website owner, of course boast about it on the front page about the results. But is it fair to say that indeed you make money with it? More importantly, on a consistent basis.
I don't know, the paid version I've never tried. However what interests me is that these stock picking websites seem to come and go. Scam? Possibly. If it's a well working website that makes you a lot of money, as they claim in their statements, why else would they take it down? My guess is that they take your money, post a few stock picks and after a few weeks then say 'sorry it doesn't work out the way we thought it would' we're closing, and oh by the way, we're keeping your money.
In a general sense is it fair for me to say this is how it works? I hope someone that uses one of these websites could post a reply to this article about what website they are using and how it's working out for them. I'm burning with curiosity!

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