If you are new to the stock
market it may be best to use a stock picking service. Since you will have no
idea what to buy and sell you will probably be relying on friends or tips
or even worse, Jim Cramer and his Mad Money TV show.
Make no mistake about it,
making money buying stocks is not easy! Don’t fool yourself thinking you can
just buy the latest fad stock and you will make money.
There
are two main methods for picking stocks: Fundamental and Technical.
Fundamental: stock picking involves analyzing a
companies income and cash flows in an attempt to determine if its a good buy or
not. Assuming for a minute that you have any idea how to do that, it still
comes back to timing.
You can pick a great stock
with excellent fundamentals but lose money because the market disagrees
with your analysis. This way of picking stocks is best left to the
professionals of pension funds etc.
Technical Analysis: attempts
to pick a stock based upon “technical” factors such as moving averages or chart
patterns. This is the method that most stock picking services use and
you should learn as well, if you are going to try and do it on your own.
If you do not have the time
or the interest in researching how to use technical analysis to pick a stock
then you are better off using a professional stock picking service.
The best stock picking services will teach you how fish as well
as give you the fish. In this regard that is why I can recommend Microcap Millionaires and Jason Bond. Both are professionals and have been making their
subscribers money for many years.
Don’t under estimate
the psychology of investing/trading, when you go with a professional
stock picking service, this person has gone through all the ups and downs and
know how to handle them. You will not have to worry about that if you can ride
his coattails.
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