Find the Best Stock Buy and Sell Signals

How to find good Stock Buy and Sell signals.

In this article we will focus on finding and using good stock buy and sell signals.  We will also touch up on some pitfalls and things to stay away from when using stock signals online. 

There are literally hundreds of sites online that offer stock signals with buy and sell levels for a monthly fee.  Some are fully computer automated, some are human generated, and some are a mix of both.  We totally recommend using one that has some decision making from a human.  Human interaction is important because the person making the stock signals can have some input on certain factors that affect stock prices that a computer just simply cannot do.  For example, corporate earnings, economic reports, trader/investor sentiment, etc.

Those factors must be taken into account when trading.  Computer generated signals just do not take this into account.

Another important factor that should be considered when using stock signals are its objectives.  Some sites offer long term signals, while some offer short term of intraday signals.  We recommend that all investors/traders know their own risk profile before choosing an investment strategy.  If you are close to retirement you should not be aggressively speculating in stocks.  Again, consult with your financial advisor before using any online signal system.

It is important to find a site that offer s 100% free trial.  I cannot stress this enough.  If a site want money upfront then they are probably scared of showing their accuracy to new clients and members without collecting some money upfront.  They know that clients will cancel once they see that their whole operation is really just a marketing operation trying to churn clients.  Not cool.  By offering a free trial, you can feel assured that the site wants you as a long term member and they are confident in their signals.  Makes sense.

I'm sure you've came across ads online that say "80% gain in one month", or "double you money every 2 weeks"...  Do yourself a favor and stay away.  These site probably don't offer free trials and are just a marketing operations looking to churn new members.  They really ruin it for the legit sites that do good by its members.  The main thing you should be looking at is their consistence.  Even a broken clock is right 2 times a day.  Which is why we don't recommend really believing those "account statements" that some sites publish on their website.  It may or may not be true, but if it is true, it may just be a one off event and not a consistent event.  Meaning, yes they doubled their money, but lost most of it the following week.  So, realistic gains, and consistency is what you should seek.

When you sign up to a new signal site, you have to expect some "slippage".  If XYZ site says to buy ABC stock at 20 per share, the stock price may still go below 20 by 10, 20, or 30 cents before the stock rises.  This is why we recommend trading in smaller lots when using a new signal site.  Don't trade heavy until you are comfortable with their system...  Trade 1/2 of what you normally trade in shares.

So again, the checklist is: Some human interaction, Fits your risk profile, 100% Free Trial, Realistic profits, No outrageous claims.