You know about the multitude of stock pick services out there that pick stocks for subscribers through newsletters and the internet, right? These stock pick services usually claim to be able to choose stocks that beat the market consistently. While some of these stock pick services truly produce consistent performance over the long term, many of these stock pick services usually fail the moment you sign up or after a short while.
Here, we will explore the reason why most stock pick services fail to produce consistent profits for their stock pick subscribers.
There are 5 main reasons why I think most stock pick services (taken that they are not simply scams on the internet.) fails and these are also things you might want to make sure you ask before you sign up for a stock pick service.
1. Failed to trade both longs and shorts
Most stock pick services only recommend stocks which you are supposed to buy and hold. The problem with this approach to stock pick is that when the general market is trending down, almost all stocks will follow a general downtrend. If you are caught in one of these downtrends with a stock pick service that only recommends buys,...