Reliable Stock Picks Website vs. Suspect Stock Scam?

Written by admin on May 19th, 2011

The internet is full with stock picks web sites. They offer investing advices, stock recommendations and trading strategies. The trouble is how to tell a reliable stock picking website from a suspect stock scam? To separate the wheat from the chaff, here are few suggestions you may consider before subscribing to these web sites:

The first suggestion is to be, at least, well informed with as much as stock market experience and knowledge. Before investing your money in subscribing to stock picking website, invest your time in learning stock investing; and you have a shortcut to the success. If you take a little trouble to prepare yourself and learn about online investing in general and about investment scams in particular, you are more likely to recognize and avoid them easily.

The second suggestion is to evaluate stock picking service with the common wisdom of “if it is too good to be true – it probably is”. It is a rule of thumb; you should live by on a regular basis. In the matter of online investing, it is matter of common sense. If a web site touts the kind of unrealistic returns with just a few investments in a few days or it outrageously claims to have a foolproof investing system – just run or walk away from it. Remember, the amount of profit is function of the degree of the risk. In other words, only those willing and able to bear the risk inherent in stock investing, will enjoy huge returns and big successes. It is easier to resist the temptation of big profits than to avoid the pain of severe financial losses.

Equally important is the advice to careful analyse the trial condition of the service offered, if provided. Unlike internet scam that doesn’t give you necessary time to experience its service, a serious stock picking website will give you enough time to verify its claim and measure its performance. You must use this time to test the reliability of the service before subscribing.

Finally, a quality stock picks web site will back its picks with verifiable facts and data. Also, it will give you full disclosure of its connection with the stocks it recommends. This way, you can judge whether it is a pump-and-dump website or just a stocks promoter.

In light of all this, a prudent investor can sift through a myriad of stock picks websites to spot a quality one from online investment scams.

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Leave a Reply