Internet is filled with stock picks websites. They are powerful investing tools. They can help you improve your investments results if you know how to use them. If you are well informed and want to add some stock picks to your investments portfolio, here are a few suggestions:
First, analyze all stock picks you want to trade
In the name of hygienic wisdom, you should clean fruits you pick from the farm before eating them. Similarly, in the name of common sense you should evaluate stocks you get from stock picks sites before trading them. The problem is to find a better prospect from the daily stock picks is difficult. It requires time, discipline and knowledge of stock market.
Second, use online financial tools as your advisor’s second opinion
Like using a second opinion of a medical specialist to assess your doctor’s diagnosis, you can use online financial tools to evaluate stock picks you get. You can narrow down the list of stock picks for better prospects by using the free tools on Yahoo! Finance and MSN Money or tips financial newspapers. For example, you can decide to trade or disregard any stock picks that passed or failed your trading strategies or your screening criteria on MSN or Yahoo – such as analysts’ consensus or MSN stockscouter.
Third, filter out the stocks picks with your common sense and tips from investing magazines
In the same manner, you can filter out the stock recommendations with your common sense or tips from financial TV-show or investing magazines. For instance, if a company Alpha was among the picks you want to buy but you learned from financial headlines that Alpha will shortly fill for bankruptcy and that the CEO, Directors, or Accountants, who are the insiders of Alpha, are selling their shares before the bankruptcy deadline. If you know when insiders are dumping their stocks, will you buy the Alpha’s shares? You will hesitate to buy Alpha. Your investing common sense and knowledge of the stock markets will tell you that it is not the right time to buy.
As you can see, it is possible to profit from the advices of the stock picks websites. You need only to be disciplined and well informed. Above all, you have to evaluate systematically their stocks picks before buying.