These days, the Internet has afforded everyone investing in the stock market to make an informed decision on their investments. Through the Internet, investors can receive the latest updates regarding their investments. The flow of information is made faster by the Internet. One of the medium for the information flow is the stock trading newsletter.
Through the stock trading newsletter, information is sent via E-mail or is viewed in a Web site that may have been updated several times in a day.
There are many stock trading newsletters today, some of which are offered for free while some require a fee. However, only some of them are very good ones, being able to help you find good stocks and assist you in earning more money.
So how does one find a great stock trading newsletter? Here are ten tips:
(1) Choose the one that focuses on the kind of trading you’re engaged in. Newsletters that barely or does not focus on the kind of activities you’re engaged in is close to useless. If you’re the type of trader that seeks diversified investments, then you won’t gain anything from a newsletter focusing on penny stocks.
(2) Determine the potential impact of advertisements accompanied by the newsletter. Advertisements get in the view and distracts you from getting on the information that you wanted right away. Free newsletters are bombarded with advertisements. Paid newsletters, more or less, contain few or no advertisements because they don’t depend on advertising for income. In addition, editors of the free newsletters may put more emphasis on the stocks of their advertising company even if there are better options available.
(3) A great stock trading newsletter focuses on the stock price movement combining trend analysis, chart pattern set ups, etc., based on data gathered from historical statistics, and presenting them to you for your own analysis as well.
(4) Consider the newsletter’s [or the company producing it] track record but don’t be too absorbed in it because some newsletter companies may fake their record. The newsletter’s analysis and information must make sense and meet common sense.
(5) Don’t avail the newsletter services from the one that is just starting out. You may find their analysis and tips valuable, but how can you ever confirm their reliability without any past performance and reviews?
(6) Consider testimonials or reviews made regarding the newsletter. Seek the advice of other investors or brokers, or ask those you knew which availed of the newsletter services. Lookup through search engines or search through blogs, forums and review sites. However, don’t be too absorbed at the reviews. Most often, the one who gave the review or testimonial may be a little biased or may be promoting a particular newsletter.
(7) Look for newsletters that other reliable financial publications have referenced or quoted. A newsletter’s content must be really good if other leaders in the industry seek it out. Also, choose newsletters published by reliable financial institutions as information from these can usually be trusted.
(8) Do some research into the newsletter’s publication date compared to its contents. A stock trading newsletter is only as good as its publication date. Something that comes out at least once a month may contain advices that are a month old, which by the moment you read it becomes moot or stale.
(9) Test three to five newsletters at a time. In this way, you avoid information overload from reading all the charts, trend analysis and research in the newsletter. Unsubscribe to one before adding another newsletter for review.
(10) Consider buying a software package offering a web trading platform service and may entitle you related newsletter, forecasts and analysis for free. If you are happy with the web trading platform, it just make sense to receive the newsletter from the same company.
Always remember that a great stock trading newsletter is one that can assist investors in making an informed decision.