If you want to make a big splash in the world of stock trading, then you are going to need to learn how to use stock alerts. While you could feasibly start ditching the idea of stock alerts as you get into stock trading ‘full time’, at the start they are going to be a vital tool in your arsenal.
Why on Earth Do You Need Stock Alerts?
Before I talk about the best services, I feel it would be wise to give a rundown on what stock alert services actually entail. This is because the definition can vary greatly from one person to another.
When I reviewed these services, my definition of stock alerts was suggested buys and sells being sent directly to you, whether it is via email, chat room, or text message. There may also be a small smattering of information on changes to market conditions, or big news that you may wish to keep an eye out for.
Stock alerts are incredibly useful as they will cut down on a lot of the work that you need to do. Somebody else will be carrying out the research for suggested buys and sells. Somebody else will be keeping an eye on financial news. It is up to you to do the minimum amount of research and spend your cash. This makes stock alerts perfect for a part-time trader.
As you become more experienced as a trader, you may find that you will be relying on stock alerts less and less. This is because you will have (hopefully) made more money and thus you can justify the time spent on doing your own research. Of course, you may still need stock alerts to point you in the right direction, even professional traders need them, but it is likely that you will determine your own trades rather than have somebody dictate them for you.
Basically; stock alerts are a quick way to help you make money. They tell you what you need to do in order to get cash into your pocket.
Caution: 99% of Alert Services are Rubbish
There are a lot of companies that provide stock alerts. Most of them are flat-out terrible. If you use the terrible ones (which incidentally are often the ones marketed the heaviest), then you are just going to be throwing away your money.
The problem with most stock alerts companies is that they don’t actually exist to benefit the person signed up to the site. They exist to benefit the owner of the website. After all; if you are sending out alerts of a stock to thousands and thousands of people, then you are going to be forcing the price of that stock up. If you have already bought into it, then you are going to make a profit. These companies need to be avoided. You are just going to lose your cash, because the nature of the stock alert is to artificially pump up the price of the stock. What goes up, must come down.
The decent companies will send out their stock alerts based on intense research. Obviously, this does not mean that they are always going to make the right picks when it comes to stocks. It is nigh on impossible to be correct 100% of the time. However, they should be right a decent amount of time due to the research they are putting in.
Good stock alerts will also give you a bit of information on how that stock was selected in the first place. This is incredibly important if you are new to the world of trading, because you want to know how that stock was selected so you can put that knowledge into practice later on down the line.
How the Top Stock Alerts Services Were Selected?
The following three services were selected against a few different criteria. This includes:
- Accuracy of alerts
- Speed of alerts
- How the stock alerts are selected
- Price of the service
I am not telling you that signing up to these stock alerts services will be the key to becoming a multimillionaire. They likely aren’t, because you will need to put effort in yourself if you want to become ‘rich’. I am telling you that these stock alerts services are a vital tool that you can use in your journey towards financial freedom.
#1 Tim Sykes Stock Picks
When it comes to ‘penny stocks’, I feel that Tim Sykes is one of the best there is. He is one of only a few people to become a millionaire from trading penny stocks, an area which most investors seem to clear of due to the high volatility of the market.
One of the reasons why I have put Tim Sykes at the top of my list is because he places a huge focus on education. Honestly, even if you are not going to be using his stock alerts services, there is more educational material at your fingertips than any other online stock picking service. You are going to learn how to be a trader. Not just a follower.
The way in which Tim chooses his picks is unique too. There are a lot of companies who are more than happy to just toss out a couple of ideas because they know people are willing to listen to them. Tim’s picks are all based upon careful technical analysis. In fact, you will be surprised to see the amount of work he puts into his picks.
You are not going to be getting a huge number of stock alerts sent to you. You will receive between five and ten per day. It is all going to be dependent on how the market is acting.
I, personally, prefer the small number of stock alerts. It is ideal for newer traders. The small number means that you can take the scattershot approach and invest in all the stocks with minimal risk (not recommended), or you can spend the time researching which stock pick is going to be right for you. When companies send out hundreds of alerts at once, it can be somewhat overwhelming, so Tim has done a good thing here.
There are two services available through Tim Sykes. Both of them will include:
- Chatroom access
- 5-10 stocks on a watchlist
- Realtime alerts
- App access
The ‘base’ service is $74.95 a month. The premium service is $149.95 per month. With the premium service you will have access to thousands of videos, plus an additional video each month. It is up to you to decide whether you need to video education part of the website. Most people are perfectly content with the base service.
#2 Nathan Michaud’s Investors Underground Chat Room
This is another chat room stock alerts service. Well, actually it is three chat rooms, each with their own unique trading style. You can choose the one that is right for you:
- Momentum chatroom: this is the most active chatroom and is available from 9am to 4pm each day trading is open. Here, people discuss their trades, and offer suggestions for trades.
- Swing Trading: this discusses swing trading.
- OTC Chatroom: this is a chatroom which is not currently used, although there are apparently big plans for it in the future.
Each of the rooms will be well-moderated. You must remember that a lot of the information being shared through these rooms will be information shared by amateur traders like yourself. This means that you can’t rely on absolutely every single stock alert that goes through this room to be a good one. However, a lot of people stick around in these rooms because they are rife with trading ideas which could make cash. You also have a lot of people who you can lean on for support when it comes to making the right trades. If you have a question, people tend to be able to answer it within mere seconds.
Each day, there are daily stock watch lists that you can keep tabs on. These are going to be packed to the brim with stocks that have proven to be good moneymakers. Many people who use Nathan Michaud’s Investors Underground Chat Room only use it for these watch lists, because these lists have been proven to be accurate repeatedly. Very few duds get through to this list.
The site is also ideal for new traders. You have a lot of information to root through. This includes intense video courses, monthly webinars, and a bit of 1 on 1 action with a mentor, although you will need to opt for the premium service if you want that.
Prices for this service do vary. If you wish for the basic package, which does not include video access, then it is $197 per month or $1397 for the year. The elite package will set you back $297 a month or $1797 for a year.
#3 Ross Cameron’s Warrior Trading
At its heart, Ross Cameron’s Warrior Trading is a chat room. Each day, around a thousand people login to the chatroom and listen to what some of the best traders in the world have to say. You will be given technical analysis, trading charts, news, and a whole lot more. It is the ideal service for those who are working from home and want to have ‘up to the minute’ information on trading stocks. There is a lot of information shared here daily, including some amazing stock alerts.
While Ross Cameron does appear in the chat on occasion, he also runs his own additional stream (which you will have access to). Here, you will be able to see the exact trades that Ross is making at that moment in time. He shares all of his analysis with you too. This means that you are essentially getting a ‘step by step’ from a professional trader who is actually putting his own money on the line.
This is a very ‘hands on’ approach to trading and it is not really like your traditional stock alerts, because if you want to make the right trades then you need to be focusing on the chat and the live stream as much as possible. However, I feel that this is one of the best ways of trading because you can act on the decisions within seconds, which means that you do not have to deal with ‘stock pumping’. Even if you do not act on the alerts (and many people do not), you will at least get a lot of information on how that stock was selected in the first place.
One of the interesting things about Ross Cameron’s program is that it emphasizes a variety of different trading styles. This is because there will be four different people giving the alerts while you are in the room.
You have Ross, who tends to be very methodological when it comes to trading. He tends to stick to small-caps. Mike gives alerts based upon technical analysis. His stock alerts are the ones you want to pay attention to if you are going above $20 per stock. You have Jeff who looks at swing trades, particularly with options and equities, and you have Ed who is a scalper. You can learn something from each of them, and they are all brilliant to listen to during the early stages of your trading career as you will be able to learn which type of trading is right for you. You may even end up devising your own method based upon what these guys do.
There are a couple of different price points for the stock alerts service. All of them are exactly the same, the price is just dictated by whether you opt for monthly, quarterly, or annual membership. All include:
- Chat room access
- Live feed of Ross carrying out his trades
- Live stock scanners
- Pro trader information
- News feed access
- $197 month to month
- $149 a month when paying by quarter.
- $99 per month when you opt for yearly access.
To Sum Up
I’ve tried out over 40 different alerts services. Alerts for forex, binaries (I know they’re rubbish, but just out of curiousity) and stocks and I’d say that these 3 plus 1 more were the ones that provided value. Others were just a complete waste of time and money.
Good luck guys! And if you have any questions/comments, please share them below.