5 Reasons To Use A Stock Picking Service

July 23, 2021

Investing in the stock market is not a casual activity. Finding and successfully investing in the right stocks can be tough. To start building your portfolio requires significant research on the stocks in which you’re interested and quite a bit of understanding exactly what your risks might be (along with several other factors). A stock picking service is another useful tool in the investor’s arsenal that can help optimize returns over longer periods. While there are several of these tools available to the world at large, they all offer similar benefits. Here are a few reasons you might want to use a stock picking service for some of your own investments.

It’s A Great Way To Get Into Stock Trading

While more seasoned and experienced investors might not really need such a program, stock picking services are incredibly useful for newer/intermediate investors and for learning how to properly invest in the stock market. They’re curated by other investors who strategically analyze stocks and make recommendations on which ones to buy based on a number of different metrics. When you’re deciding on a subscription, there are a few things to keep in mind. A track record is extremely important when evaluating a stock picking service. It provides an overall view and assessment of how the service has genuinely helped other investors make money with their picks. You’re looking for consistently better-than-average results in this area. Also, keep an eye out for how legitimate the service is and whether they operate with integrity or not. Find a service that isn’t padding its numbers or exaggerating its results to attract subscribers. if they’re recording profits before they even have them or making claims without tangible proof, then they’re likely not reputable. Experience is also essential, so be sure to find services provided by traders who know what they’re doing, have a background in investing, and are focused on helping other investors. These services are ideal for investors interested in buying single stocks and newer investors looking to get into playing the stock market for the first time.

High-quality Recommendations

Stock picking can be tough. It’s all based on analysis and prediction, so there’s really no way to guarantee a return. There is, however, lots of valuable information that can help you decide if taking a chance is worth it or help you understand which stocks might be performing best at any given time. It all comes down to the recommendations these subscriptions offer. One must also consider that each stock picking service is different, with its own facets and goals. Some may be more focused on swing trading or penny stocks. Take a look at this Motley Fool review, for example, to get a good idea of how a service that focuses on high-quality, long-term, predominantly blue-chip investments works. In addition to recommendations, it focuses on driving value with watchlists, discussions, stock profiles, events calendars, historical data, starter stock picks, portfolio tools, and more. Other subscriptions are set up similarly but offer different amenities, so research services based on your interests and goals to get the most from a stock picking service.

Predominantly Low Membership Fees

Membership fees can vary from subscription to subscription, but usually, it’s proportional to what’s included with the subscription. Some subscription services can run as low as $47 and include a newsletter with a few stock picks and access to the investor’s additional resources. Others can run around $99 and feature a ton of extra features like modeling tools, forums, and courses. Other subscriptions can run much higher, beyond the $200 mark or some even beyond that. Trade Ideas – an AI-based stock picking service with a ton of valuable resources and intended for investors with a large amount of capital to invest – is upward of $2,000 per year. All of them should include indicators of their stock picks’ past performance, be user-friendly, and provide replicable picks.

Flexible Performance Goals

Depending on your investing goals and how quickly you want to see a return, there’s probably a stock picking service out there for you. Services run the gamut of being intended to help with high growth and long-term performance (Motley Fool) to focus on specific types of trading strategies like swing trading, day trading, or penny stocks. Swing trading makes trades based on swings in stocks or currencies over several days and weeks. Day trading involves using a series of robust analytical methods to make trades in a single day. There are a few stock picking services that focus on day trading, despite the difficulty. Penny stocks trade for less than $1.00/per share, though the SEC modified the definition to include any share below $5.00. These stocks align with small companies, trade infrequently, and may be difficult to buy or sell. Despite that, some stock picking services focus on penny stocks and investing with them. Ultimately, there’s a service out there for any flexible performance goal and investing strategy.

It Does More Than Just Pick Stocks

While the appeal of well-performing stocks and market knowledge/insight can be strong, one of the best aspects of these subscription services and sites is how they often go beyond making recommendations. Many such sites are a repository of investment knowledge and educational tools, not to mention investment and portfolio tools. Maybe the service will offer a stock screener, which is a good way to visualize data related to the stock picks. Perhaps it’ll offer a portfolio management tool or a way to simulate how your stocks might perform over time. Other services may even provide feedback and the ability to have a conversation with the investors who chose the stocks. Remembering that nothing is truly guaranteed and treating the service as more of an investment tool rather than a means to make quick money is the ideal way to use any of the myriad stock picking services available today.


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