If you want to establish a large name for yourself in the world of stock trading, you’ll need to understand how to use stock alerts. Although you may eventually abandon the concept of stock alerts when you transition into “full-time” stock trading, they will be an essential tool in your armory at first.
What is a stock alert?
They are suggested buys and sells sent directly to you, whether it is via email, chat room, or text message.
This information is about changes in market conditions, economic results, price action, or major news that you should be aware of.
Stock notifications are really handy since they eliminate a lot of the effort that you have to perform. This is due to the fact that someone else will conduct the research for proposed buys and sells.Â
Someone else will be monitoring financial news. Then it will be up to you to do the least amount of research and spend your money. As a result, stock notifications are ideal for a part-time trader.
Why are stock alerts important?
As you gain trading experience, you may find yourself depending less and less on stock alerts. This is because you will have (ideally) earned more money, allowing you to justify the time spent on research.
However, this does not mean that you will no longer require stock alerts. Of course, you may still use stock notifications to guide you; even skilled traders require them. It’s just that you’re more likely to decide on your own transactions than have them dictated to you.
So, in essence, stock alerts are a rapid approach to assist you in making money. They tell you exactly what you need to do to obtain money in your pocket.
What to look for in a stock picking service?
Many cater to day traders or swing traders, assisting them in identifying stocks ready to soar or plummet sharply that day or the following week. Others cater to long-term buy-and-hold investors, selecting stocks that they feel will expand rapidly in the coming years.
First and foremost, seek out stock pickers that have a proven track record of outperforming the market. No stock picker will always get it right, but the savvy ones will be correct far more frequently than wrong.
Before receiving financial advice from any stock picker, check their credentials with a track record. When possible, compare their picks’ returns to the market as a whole. It makes little difference if their picks increased by 30% last year if the market expanded by 35%.
The greater the length of that track record, the better. Look for experience in your stock pickers, as a successful year or two could be down to luck. Twenty years of high picks signal talent.
Examine the honesty of stock pickers as well. Ethical and transparent stock pickers never mislead their audience by, for example, recording trade wins but leaving losing trades open and only publishing the closed winnings.
Best stock picking services
The Motley Fool Stock Advisor
The Motley Fool Stock Advisor is a weekly investment newsletter that makes precise buy recommendations for stocks listed in the United States.
Members of Stock Advisor receive a stock pick every first and third week of the month. Portfolio management is simple for long-term investors with two trades per month. Day traders can also use the trade notifications to make money intraday by day trading the stock. Still, the main purpose of subscribing to the Motley Fool Stock Advisor is to learn how to pick stocks and replicate their method for great profits once you begin trading the stock market on your own.
Subscribers receive access to a history of previous recommendations. This Stock Advisor trading database is quite useful. Traders can examine the approach, check the chart history, and even the market reaction followed by trade warnings with some time invested. These discovered trends may enable investors to earn even more the following time.
Subscribers receive unlimited access to the Motley Fool Stock Advisor as well as a 30-day money-back guarantee.
Pros
- Highly transparent service used by over 1 million investors.
- Convincing track record since inception in 2002.
- 30-days membership fee-back guarantee and starter stocks.
Cons
- Only two stock picks per month.
Seeking Alpha Premium
Alpha Picks is a quantitative stock selection service offered by one of the most popular trading websites, seekingalpha.com. According to Similarweb, approximately 26 million users use Seeking Alpha for stock news, research, analysis, and market updates.
Seeking Alpha created Quant Ratings a few years ago for an unemotional and objective appraisal of every stock based on significant data, such as corporate financials. Each stock is rated (strong buy, buy, hold, sell, or strong sell) and assigned a score based on its value, growth, momentum, EPS revisions, and profitability. The quant ratings soon gained popularity among Seeking Alpha Premium subscribers.
Seeking Alpha now publishes an investment newsletter called Alpha Choices, which harnesses the quant system’s algorithmic ability to supply subscribers with two particular stock picks every month for a reasonable annual fee. The stock newsletter is new, so we don’t know about current performance, but the backtest shows a considerable outperformance over the S&P 500. During the backtest period, the S&P500 gained +290% since 2010, while the Alpha Picks algorithms gained +470%.
Every investment newsletter includes a stock recommendation, a full company description, a detailed justification for the transaction, and data-driven insights. Seeking Alpha also keeps subscribers updated on the status of past recommendations.
ProsÂ
- Objective and unemotional buy recommendations based on Quant algorithms.
- Backtests indicate that the stock picks perform better than the broad S&P 500 stock market index.
- Reasonable annual subscription fees.
Cons
- Alpha Picks is a relatively new investment newsletter.
Trade Ideas
Trade Ideas differs from the previous stock choosing services in that the stock picks are created automatically by Trade Ideas’ proprietary market scanner. Furthermore, customers can choose whether to design their own scanning algorithms or receive trade signals automatically via Holly, the pre-defined artificial intelligence-based platform.
Backtesting and automatic trading features are also included with Trade Ideas.
The quantity of trade notifications fluctuates greatly depending on the scanner settings, however it is apparent that the service is beneficial for day traders. So, if you want to trade the stock market on a daily basis or have the computer execute your trades for you, Trade Ideas is a fantastic option.
Trade Ideas A.I. can also be utilized to swing trade if you are not a day trader.
ProsÂ
- Stock scanners for over 8000 stocks.
- AI technology backed products and services.
- Charting, backtesting, automated trading, education and more included.
- TI-Strength alerts are available separately.
Cons
- Less useful for buy-and-hold investment strategies.
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