Saturday, 29 June 2013

Are The Best Stock Newsletters The Right Place For Advice?

By Jeanette Riggs


Investors want the highest quality information they can possibility get. In order to get it they might wish to consider using the best stock newsletters before even a cent is invested. Whether the individual is a small or large investor, it is important to have the correct information to hand, as this can be the difference between making money and losing it.

Some state that the key to stock research is finding a company that shares the same investing philosophy. The theory is that by finding a place that thinks the same way, the time and effort taken to make fiscal decisions is easier because client and investor are on the same page. There are a variety of sources, each with their own pros and cons, so it is up to the individual to decide what information to disseminate from each source.

Research from Wall Street is generally produced by investment banks and the banks are often dubbed "sell-side research" because they banks usually sell stocks to customers. They generally make their money by charging fees to customers for the privilege of trading. Their analysts provide profit forecasts for all manner of companies and the information they provide can be a useful indicator on how the markets view a company's business prospects.

Independent firms offer advice and also reports. Their research is available of subscription and they usually charge a fee. They have analysts that track hundred and sometimes thousands of shares, whereas other research firms choose to specialize in market segments or on the largest 200 to 250 companies on the stock exchange. They provide the usual growth forecasts and market analysis data.

Investors can also get their information from newsletters, many of which have been in the business for several decades. One thing to look for is the average return that their stock picks would have gotten over the short, medium, and long term. Some actually exist to track the suggestions of their counterparts, and they will list those newsletters that have produced above-average returns and those that have not performed as well.

When making the decision as to whether to take the newsletter route, there may be other considerations to take into account. Many offer a variety of services and some sell analysis software too. This gives a degree of flexibility over which companies annual reports to explore and dissect, as the investor may wish to follow a specific company that is not covered by the newsletter.

Perhaps the most amount of data is available online. The great news is that it is free and can be accessed through a search. Obviously, data is one thing and interpretation is another. If trawling the web, be sure to take into account the source of any advice, and whether the company or person giving it has actually invested in the stock that they recommend.

In conclusion, there are many places in which the best stock newsletters can get investing data for their clients. Choosing one depends mainly on the type of investor, how much capital they have, and how much research as an individual they wish to do.




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