Advantages and Disadvantages of Individual Stock Picks Websites

Since several years, the online stock-picking services are the subject of very lively discussions. People are far from being in agreement about them and are multiplying the declarations.

Disadvantages of individual stock-picking sites

To justify their point of view, the opponents of individual stock-picking sites often give one or several of the following arguments:

Individual stock-picking sites are black boxes which prevent the investors to gain and improve their knowledge of investment.

The stock-picking websites can blind the investor on the risk inherent in investing in the stock market. With its easy access and the dozens of daily stocks recommendations and tips, the online stock-picking services, can push the individual investor into laziness - therefore take too much risk with their stock investments.

Individual stock-picking sites are work of amateurs

Online stock-picking websites are most of the time a work of amateur or of sol operators which allow some professionals to say that they are not serious and profitable advices. They did not, therefore, have their places among the tools of online stock investments.

Individual stock-picking sites record of success is difficult to measure

Individual stock-picking websites are recent trend that evolve with the development of new technologies in the domain of internet, information and finance. There is, therefore, a lack of enough data to measure their performance.

Doubtful Promotion tactics of stock scams

It is just like making good first impression during your first date. Online stock scams make effort to secure investor subscription during the trial period knowing that the experience made during this period become the standard by which individual investors judge their services. By the time the trial period ends and the train of subscribers leaves the platform with the private investors on board, the scammers intensify their guerrilla marketing, they begin to bombard the unwitting investors with various formulas for getting-rich-quick. During the trial period, anything seemingly suspicious or that brings into your mind the old adage "if it is too good to be true - it is" is a red flag.

Advantages of individual stock-picking sites

Convincing enough as the opponents arguments above might seem, those favourable to stock-picking sites are surprised that their opponents want to limit their place among online stock investing tools and that they are not sensitive to their advantages. For the advocates of the individual stock-picking sites, these sites deserve more indulgence and they give also several good arguments for individual stock-picking sites.

Individual stock-picking sites record of success can be tracked

One easy way to evaluate stock-picking sites' track record is, for example, to apply stock-watching technique to their recommended stocks. Use any free online financial portfolio application, create a virtual watch list of the picks and patiently track their returns.

Online stock-picking services are inexpensive

First, compared to the traditional financial services - such as full-service stockbrokers, fund managers and investments advisers, individual stock-picks services are inexpensive and sometime free for a certain period of time. For less than 30 dollars, they provide you a list of enough stocks to keep you busy with investing for a while.

Individual stock-picking sites are great alternative sources of unusual information

Moreover, stock-picking websites are great alternative sources of unusual information, tips and techniques on stock investing. They are the most of time a work of sol dedicated operators more passionate about stock investing than professionals. For this reason, you might not always enjoy the kind of return that tempt any investor but you might, for once, enjoy traveling in the same train of investment success loaded up with the next Google or Amazon.

Online stock-picking services push investor to learn more about investing

Online stock-picking services take away the effort, difficulty and time required to search for stocks to trade, allowing investors to concentrate on the exciting but challenging part of stock investing: managing their money and acquiring investing knowledge.
Individual stock-picking websites can help investors to better assess the functioning of investing in the stock market and the importance of being educated on techniques for stock investment. They create in the investors the desire to learn more about investing in stock market.

Christian Bayonne is a do-it-yourself investor, who has been investing in stocks for the last 10 years. He is also the co-owner of the website http://www.stockonrise.com/ .