There are many trading alert services online. Sometimes the “guru’s” are good traders and other times they are con artists or snake oil salesmen. I know this because over the past 12 years I have tried many of them including Timothysykes.com, jasonbondpicks.com, warriortrading.com, Thelincolnlist.com, Bullsonwallstreet.com, Biorunup.com, and Greatstockpix.com.
All of these websites have one thing in common. They are trying to get you to pay them to pick stocks when in fact it’s nearly impossible to follow somebody else and become consistently profitable. Although you may be able to make a little money here and there scalping their alerts if you are fast and have a lot of capital ($50,000-$100,000 or more), the guru’s will almost always get a better price than you when entering stock and better price when exiting as well. The reason for this is because traders enter stocks at specific pivotal points where momentum will flood into a stock (breakouts).
By the time a guru sends an alert a stock will already have moved past that pivotal price level sometimes by a large amount. On top of this when traders see the volume spike in stock using their real-time scanners, they will also rush to trade a stock which will make the stock move even further past the alerted entry price. Most of these gurus choose to trade illiquid penny stocks because they know that their subscribers at the very least, will be able to move the stock in their favor a little bit after they enter the stock. When the stock doesn’t do what the guru expects they may send out another alert to say they averaged down (even though they originally did not tell their subscribers that they only took a 1/4 or 1/2 position in the first alert). Then they use the momentum from their subscriber’s second round of buy or sell orders to get out of their botched trade and break-even, while their subscribers get caught holding the bag and lose thousands of dollars.
When following a guru, on winning trades you will make only a portion of what the guru makes and on losing trades you will lose a lot more as all of their lemming subscribers run for the exits. The more people that join their service the more this issue is magnified. The only real way to get around this is to learn their strategy however a majority of guru’s either don’t give it out or they only give out a portion of their strategy in their worthless DVDs, but leave out the important parts such as how they scan for stocks or which tools they use to project their price targets. They do this because they know if they give out this important information then their subscribers will quit and they will no longer maker thousands of dollars per month from their worthless alert services.
It takes years to learn a strategy inside and out and have the confidence to take every signal. Since hundreds or even thousands of people subscribe to some of these services the guru’s basically can make money on almost every trade since their alerts literally move stocks by $.10 – $1.00 almost every time, especially for higher-priced stocks. Because of this, they can post their track record online which looks amazing on paper, and they can continue to con new people into subscribing to their alert services. They can even tell subscribers that they should not trade off their alerts, but subscribers will not listen. After all, they are paying money for these alerts because they are lazy and/or dumb and don’t know how to trade themselves.
It’s really sad to see people give their money to these guru’s and make them rich while getting poor trading advice and losing all their money. The guru’s try to lie and say their alerts play no part in moving the price of stocks but the fact of the matter is it is simple math and common sense. For example, if a guru has 1500 subscribers and being conservative, each one only purchases 1000 shares of a 1.50 penny stock, this will bring $225,000 of volume into a stock. $225,000 that floods into stock with an average trading $ volume of $25,000 will cause a low float stock to spike.
However many people that are subscribing to the guru’s service are people that are successful in their own line of work (but clueless about the stock market and how to manage their finances.) They may be doctors, lawyers, corporate executives, etc. These people have a lot more disposable income than $1500. Some of these people will put $15000 or even $50,000 into the stocks that the guru sends a trade alert on. This means instead of only $225,000 the guru will probably generate more like $500,000 or even $1,000,000+ in buying volume. This type of volume will cause huge spikes in certain low priced stocks 99% of the time.
You can easily tell this by looking at a chart of the stocks right when the guru sends there alerts and see how the volume spikes for about 5 minutes and then that’s about it. You can also see that as soon as the guru sells their position it is like a switch gets flipped off in a stock and all of the buy or sell orders completely disappear. It would be okay if these gurus were alerting on liquid stocks since their alerts could not move these type of stocks that trade millions of shares per day, but the fact of the matter is they choose these low priced penny stocks for a reason. Most people seeking the guru’s services don’t have enough capital to buy 1000 shares of a $25.00 stock but they can buy $3000 or $5000 of a $1.00 stock.
Do yourself a favor and stop giving these guru’s money and learn a strategy that will make you self sufficient. I went down the same road as everyone else. I tried out all the services and then I finally realized that the only way to make money in the market is to come up with your own profitable trading system or find somebody willing to teach you their own entire method.
To get started in the market and begin making real money, forget all these guru’s and become self-sufficient: click here.