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. Although 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.
In this guide, I’m going to walk you through the value of stock alert tools, some of the best stock picking services for traders, and how these stock alert services were selected.
Without further delay, let’s start with:
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.
What is a stock alert?
When I reviewed these services, my definition of stock alerts is that 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 to market conditions, economic results, price action, 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. This is because somebody else will be carrying out the research for suggested buys and sells. Somebody else will be keeping an eye on financial news. Then, it will just be up to you to do the minimum amount of research and spend your cash. This makes stock alerts perfect for a part-time trader.
Why stock alerts are important even to accomplished traders
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 research.
But this doesn’t mean you won’t need stock alerts anymore. Of course, you may still need stock alerts to point you in the right direction, even professional traders need them. It’s just that you are likely to determine your trades rather than have somebody dictate them for you.
So, basically, stock alerts are a quick way to help you make money. They tell you what you need to do 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 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 or the best stock picking services 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 for a decent amount of time due to the research they are putting in.
Good stock alerts or the best stock alert service 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 Picking 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 for these stock alerts services will be the key to becoming a multimillionaire. They likely aren’t, because you will need to put the effort into yourself if you want to become “rich.” I am telling you that these stock alert 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 off 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
- Real Time 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 its 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 9 am to 4 pm 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 that 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.
Link to Nathan Michaud’s website: Investors Underground
Link to my full review: Investors Underground review by Paul Koger
Link to special discounts for IU services: IU discounts
#3 Ross Cameron’s Warrior Trading
At its heart, Ross Cameron’s Warrior Trading is a chat room. Each day, around a thousand people log in 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
- Newsfeed access
- $197 month to month
- $149 a month when paying by quarter.
- $99 per month when you opt for yearly access.
Link to warrior trading homepage: Warrior Trading Homepage
Link to my full review: Warrior Trading review by Paul Koger
Honorable Mention: Motley Fool Stock Advisor Picks
Although I believe those top three are some of the best stock alerts services that actually work, I also think the Motley Fool Stock Advisor Stock Picks is a stock picking service that is worth considering.
Established in 2002 and led by Motley Fool co-founders Tom and David Gardners, their top picks were time and again able to beat the market by 5x since its establishment.
If you are a member of the Motley Fool Stock Advisor stock picking service, you will have two picks every month. One from David and another from Tom. Both David Gardner and Tom Gardner work independently so they come up with their own recommendations.
David Gardner’s track record of nearly 7 times the market earned him loyalty from members of the Motley Fool Stock Advisor. On the other hand, Tom Gardner adopts what’s called the value investing strategy: buying stocks for less than their intrinsic values.
The Motley Fool stock alert service recommendations are based on a 3 to 5+ years holding period. Subscribers do not just get stock trade alerts, but also exclusive research reports, and they also get to participate in the members-only discussion boards.
How do I set up stock alerts as a subscriber?
To never miss an opportunity, stock or trade alerts are important.
Usually (but still depending on the stock-picking service you chose), you may set up alerts for the stocks you are tracking by often checking the settings page or it could be as easy as following the instruction sent to your inbox.
For instance, if you think the best stock alert service is Tim Sykes, then your subscription often follows with email alerts or text alerts, detailing stock picks, trade alerts, and investment advice.
Meaning to say, once you sign up, enter your email, and decide to become a member, you will receive ongoing updates via their independent financial email newsletter.
Stock alerts are also easily set up using apps, which allow you to receive notifications directly through your phone. In the settings, you may add your phone number so that you can also receive day trade alerts via text message.
To Sum Up: What is the Best Stock Picking Website?
I believe Timothy Sykes stock picking service is the best for beginners because you’ll get to choose different packages and they come at a more affordable price than other alert systems.
There’s a stock watchlist that is easily viewable. This alert system from Timothy Sykes services covers what investments you should make or the best time to make them. As easy as that!
There are also video lessons you can take advantage of and you’ll receive real-time penny stock alerts via email or SMS. It’s very low cost but at premium service.
If your knowledge in trading is a little bit more advanced, go for Nathan Michaud. Its stock picks and trading signals have a great track record and I rate the quality of its alerts, support, and education above average.
I’ve tried out over 40 different alert services. Alerts for forex, binaries (I know they’re rubbish, but just out of curiosity), 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.