The stock market is both one of the greatest wealth-generating tools in the world and a potential black hole where you can lose ridiculous sums of money in the blink of an eye. The key to not ending up broke is to get ahead of the competition by choosing the right stocks to invest in.
But how exactly does one get ahead here? And is there an easier way to do so than having to extensively research quarterly earnings, market shares, and similar criteria over and over again?
Thankfully, there is. All you have to do is choose a good stock picking service and let it do most of the work for you.
Of course, not all stock picking services are created equal. There are dozens of them out there, but not all of them are completely transparent or as effective as others. This is why, in this post, I’ll talk about our top-5 list of the best stock picking services available in 2021, taking their pricing, returns, and reputation into consideration.
What Is A Stock Picking Service?
In its most basic form, stock picking services are a group of financial companies and experienced investors that make recommendations in order to help you make better decisions when choosing which stocks to invest in.
Typically, you’ll have to pay for these recommendations, but most stock picking services today are affordable compared to the returns you can make on your investments.
By subscribing to services like these, you’ll get access to either a newsletter or a platform with in-depth analysis shared by experts in the financial industry. A stock picking service can be a great addition to any research you’ve previously made on any company.
What Makes A Good Stock Picking Service?
You need to be careful when choosing a stock picking service. As you probably know, wherever there’s money involved, there’s also a fair share of scams to watch out for — and trust me, there are scammy stock market services out there.
Many newsletters that serve as stock picking services are actually “pump and dump” schemes. Basically, mailers are used to inflate the stock price using misleading information to make others rich. As a result, the stock prices eventually fall and most investors end up losing money.
So, if you are new to day trading or investing in stocks, you don’t want to jump into the first newsletter or paid service you see without knowing what makes a good stock picking service first.
Here are a few questions you should ask yourself when you want to identify a good stock picking service.
#1 Are They Trustworthy?
One of the first things you should determine before choosing a stock picking service is whether or not they are trustworthy. To do this, you can take a look at reviews; see what people are saying about the stock picking service; investigate how long the company has been around, and ask other investors to see if they recommend it.
It’s also worth mentioning that even if the information looks credible and legit on the stock picking service’s website (it always does), you should research the company regardless and look for third-party opinions, just to be sure.
#2 Do They Have A Good Track Record?
Whenever finances are involved, you always want transparency and past performance results. If a company is hesitant about past performance results or they’re making excuses instead of showing you results, that should already serve as a huge red flag.
Legitimate companies in this space will give you access to recent stock picks, past performance results, and even a history of recommendations that have gone both right and wrong. Any stock advisor or analyst also needs to be honest about the methods and signs they look for in good companies. In other words, they should be open to explaining how they choose their winning stocks.
#3 Do They Have Educational Material?
Services that offer additional educational material and insights have a huge plus going for them, and this applies to any stock picking newsletter or service you consider.
Find out if the company or service you're considering gives you access to tools, educational material, tips and tricks or anything that helps you become a better investor. If they want to help you learn more and become more informed, odds are they don't have anything scammy to hide.
On the other hand, if they seem overly eager to bypass questions about how the process works and about why they chose this stock and not the other, you could be looking at a scam.
#4 Is It Affordable?
In current times, investors expect low costs associated with their investments. It’s pretty much a must today, especially as most brokerage companies offer $0 commissions on stock trades and other fees continue to get lower.
Look for stock picking services that fit your needs and overall budget, and avoid any stock picking services that have a very high price tag. There’s plenty of options and competitive prices to keep your costs low and stock returns high.
Top 5 Best Stock Picking Services
Regardless if you are a standard investor or a day trader, there are plenty of legitimate stock picking services out there that can meet your needs and help you determine which stocks to invest in. Some can even help you determine when it might be a good time to sell stocks that you own.
Here are my top 5 picks for the best stock picking services of 2021.
#1 Capitalist Exploits
Capitalist Exploits is a relatively new investment newsletter that does all the hard work for its users. It provides condensed information about market insights as well as giving them dissected investing opportunities.
The main function of Capitalist Exploits is to alert investors of unknown/underrated investing opportunities that could have considerable yields, and it also takes care of filtering all of the opportunities available in most markets by yields and risks. The team behind the company also provides clear guidance on how to execute these investment ideas.
Capitalist Exploits also makes suggestions on ways to adapt to different situations in case the predictions they've made are incorrect. This is a feature that other stock picking services seldom have, and it creates a safe and informed environment to invest in.
- Free assistance.
- Access to a Telegram channel.
- Access to its own blog.
- Anyone can use it.
- Price is slightly higher compared to other stock picking services.
For a more in-depth review of Capitalist Exploits, click here.
#2 The Motley Fool Stock Advisor
The Motley Fool Stock Advisor is a newsletter published by The Motley Fool, a company run by Tom Gardner and David Gardner. The Motley Fool was founded in 1993 and has since grown to become one of the most widely quoted investment sources. It has over 700,000 newsletter subscribers.
The Motley Fool Stock Advisor makes direct stock recommendations and has a good track record of doing so. When you sign up for the service, you’ll be provided with two new stock recommendations, and you’ll receive new recommendations (with an in-depth analysis of why you should buy said company’s stocks and what the potential risks are) every month.
The service also provides a Best Buys Now feature, with weekly updates of what they believe to be the 10 best recommendations to invest in at that time. If you’re a relatively new investor, they also publish a list of the 10 stocks they recommend for beginners.
The Motley Fool Stock Advisor also comes with:
- A stock screener.
- Performance tracking.
- Video interviews with the Motley Fool team, and
- Exclusive special reports on up-and-coming investments.
The company also offers access to The Motley Fool community, where you can find discussion boards on various investment topics and you can swap investment strategies with other Motley Fool subscribers.
- Great track record since it was founded in 1993
- Good for beginners
- 30-day money-back guarantee
- A limited number of trading signals.
- Advertisement campaigns try to upsell other Motley Fool services.
#3 Warrior Trading
Warrior Trading is an advisory service that focuses on day trading. This is very useful because finding the right stocks to trade is one of the biggest questions that day traders have. The service claims to have over 700,000 active subscribers.
Warrior Trading offers educational courses, tools and community support for beginners and experienced day traders. They also offer a free trading workshop that will help you learn everything you need to know about day trading (including stock selection and risk management). They also have a trading simulator that helps you practice your skills before you start trading, which is not a common feature among stock picking services.
By subscribing to Warrior Trading, you'll also get access to the Chat Room, where you can talk about day trading with other members of the community, as well as access to watchlists, live trading, market commentary, recaps, and Q&A sessions. Finally, you'll also get access to the Screenshare feature, where you can watch live video feeds of Warrior Trading mentors while chatting and trading.
- Great alerts for day trading.
- Accurate stock picks.
- Proven track record with public account statements.
- Not suitable for swing trading.
Zacks is a stock picking service that was founded in the late 70s and is still a trusted source for buy-and-hold investors, day traders, and those looking to do extensive research.
While there are plenty of free things you can do on their platform, they also feature a subscription to their stock picking and recommendations service in case you want to get the most out of the platform. Investors who prefer deeper analysis as the backbone of their stock strategies and like having access to wide variety of tools will benefit from using Zacks.
The Zacks Rank List is actively managed and updated on business days, and each stock is scored with a rating system. Investors can sort and filter the list by:
- Value score.
- Market cap, and other categories.
- Extensive stock list updated every business day.
- Stock screener access included.
- Zacks Premium trial for 30 days.
- No email notifications when new stocks are added.
#5 Trade Ideas
Trade Ideas is a stock picking platform that uses artificial intelligence for its stock screener and scanner.
The platform generates real-time recommendations for its users based on the data it runs the night before. This includes entry and exit points for trades, which in turn gives you more information that can help you make better investing decisions.
One downside worth considering is that no one is talking to you during the trading day as you use the software. But to compensate for this, they also offer a free trading chat room and a stock alert service known as the Trade of the Week. Both the trading chat room and the Trade Of The Week features are free for everyone to use.
- Comes with free educational content.
- Real-time alerts.
- Great platform for beginners.
- Good for day trading and swing trading.
- No dedicated guidance.
The stock market is a great way of generating wealth relatively quickly, but it can also be a pitfall where you lose that same amount of wealth just as fast as you generated or even faster. You’re always trying to get ahead of the competition, and while stock picking services don’t make the process completely effortless, it certainly makes it a lot easier.
These are our top 5 picks on the best stock picking services of 2021. Carefully consider the pros and cons of each before choosing any of the options featured here, as not every option here will be the right one for you.