With the internet such a huge part of our daily lives, many investors have access to a wide range of instant investment information.
Whether you're into stocks, bonds, mutual funds, futures or options, there are tons of electronic investment newsletters offering to turn your small stake into a giant fortune. All you need to do is subscribe and watch your portfolio soar.
Yeah, right!
As a practicing investment advisor specializing in no load mutual funds, I have received my share of e-mails from disillusioned subscribers wanting to know how to better evaluate newsletter services.
While there are no absolutes, I can give you a few pointers that might help you make a better decision:
1. Stay away from the most obvious hype. Ads promising to turn your $10,000 into $1 million in 2 years by buying this incredible stock or hot commodity are not promoting investing - they are selling gambling. Follow the "If it sounds too good to be true, it usually is" rule.
2. Most mutual fund newsletters won't make those outlandish claims, but some of them are still pushing the truth as far as they can. So try to get a free issue or two to examine. If you can't get a sample, check if they have a trial period? How about a money back guarantee? If not, pay with your credit card. These days you're pretty well protected by this payment method even if the newsletter doesn't offer a satisfaction guarantee.
3. Consider the editor as well as the disclaimer notes. Is he or she only publishing a newsletter? Or is he also an investment advisor with a practice?
Why would that last point matter? I may be biased, but I believe that you get far better advice from a writer who also is in the trenches every day investing their own as well as their clients' portfolios. They would have far better insights as to what works and what doesn't than someone who has the theory down but no practical experience.
4. Look at the investment recommendations. Are they suggesting you buy into a certain orientation such as mid cap, small cap or large value? Or are they picking specific investments based on a variety of technical indicators?
In my no-load mutual fund practice I use specific recommendations, even for my free newsletter subscribers. They are first based on my trend tracking indicator giving us the green light and secondarily on the selection of mutual funds based on momentum analysis.
The more specific the recommendations, the better, because that allows you to follow along either just on paper (which you should do at first) or with your actual portfolio.
5. Are they recommending when to sell a mutual fund either because of gains or to limit your losses? This to me is the most important issue. If there is no plan in place for getting out, how will you ever know when to sell? This has been the greatest downfall of most publishers (and investors!) since the bear market of 2000 - not selling even if market conditions dictate it would be in your best interest to do so.
The advice of most newsletter services can make you money in bull markets. However, with the continuation of the bear market still a distinct possibility; be sure to look at any newsletter's investment advice record since 2000.
For many people investing is an emotional issue. The pendulum swings between fear of loss and greed for greater returns. If a complete methodology for buying and selling is offered in a newsletter, such as one I advocate, be sure that it fits your emotional make up.
There is no sense in following an investment approach, which may have merits, if it means sleepless nights for you. You won't stick with it for the long term - and long-term investing is essential for making your portfolio grow and prosper.
So, the bottom line is to look for a newsletter that:
Following these guidelines may not make you rich, but it will help you avoid some bad advice.
About The Author
Ulli Niemann is an investment advisor and has written about methodical approaches to investing for over 10 years. He avoided the bear market of 2000 and has helped countless people make better investment decisions. Subscribe to his free newsletter: www.successful-investment.com
recurring cleaning service Mundelein ..Several times each month I am solicited by various market... Read More
Very few people, even professionals, have heard of the Dalbar... Read More
"There is nothing more frightful than ignorance in action!" Johann... Read More
Mutual funds were moderately successful in creating a presence in... Read More
You have decided to buy some stock or mutual funds,... Read More
What can I expect to make my first year of... Read More
One of the basic laws of physics is that a... Read More
How many times have you said to yourself, "I'd like... Read More
Every publicly traded company is required by the SEC(Securities and... Read More
With the stock market stubbornly refusing to settle down and... Read More
Suppose your position has made a big move and you... Read More
Everything you invest in has risk so you want to... Read More
I am hearing predictions by brokers, financial planners, talk show... Read More
Now where have I heard that before? I know. It... Read More
After finding the price of a particular stock, usually the... Read More
Quick, look out the window. It's raining. No, the sun's... Read More
How many people went to a cash position this week?... Read More
Every day in any financial publication you will find the... Read More
The basis of diminishing return discussions surround such simple notions;... Read More
I have watched my cat play with a bag of... Read More
What is the Series 7 Exam? If you... Read More
Even if you don't own any of their stock or... Read More
As an investor you will want to check out any... Read More
The bear market that showed up at the end of... Read More
You have heard about a particular mutual fund from a... Read More
tidy up service Buffalo Grove ..As a novice trader, you'll often feel the need to... Read More
The ABC's of Stock Trading SuccessStock trading success...why is it... Read More
Its dinnertime and the phone rings. It's Joe Noname with... Read More
Everyone who invests in the stock market wants to be... Read More
It is commonly reported that the stock market averages about... Read More
Ever turn down a street, get half way and suddenly... Read More
Any online investor / trader seeks an excellent off or... Read More
As one of my regular readers you know I have... Read More
I have a 2-car garage. There are nice shelves on... Read More
I often hear from people, "I don't trade. I invest.... Read More
Every year I go to the Money Show in Orlando,... Read More
How do you invest? What do you really pay? At... Read More
Much like the middle child, mid-cap stocks have long struggled... Read More
Day trading is all about making buy and sell decisions.... Read More
Let's go into the details of why non-indexed mutual funds... Read More
Forget making a profit; instead focus on the income provided... Read More
Because you don't feel too sure about which stock or... Read More
How many times has this happened to you? You're at... Read More
One of the things people are always asking me is... Read More
With all the bad news that has been dumped upon... Read More
1. Do not spread your money too thin.My friend has... Read More
The Law of Chaos is the theory of random unpredictable... Read More
One of the greatest challenges of investing in stocks is... Read More
Are you paying any attention to your retirement savings? Do... Read More
Trading is a fascinating activity.There are so many layers to... Read More
Stocks & Mutual Fund |