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TME: 019 Stock Picks

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We hear a lot of people giving their stock picks. Some post their stock picks on the web. Some scream their stock picks on TV. Today we are going to talk about the good and the bad of stock picks.

 Stock Membership Sites

I was in the woods on a cool March morning. The market had just opened. My phone was not getting a very good signal. The email came through that said buy an option for a certain symbol. When I went to buy the option it was much higher than the suggested buy price. There must have been a delay between the time when they sent the email and when I received it. That was my first experience with a stock pick or stock membership website.

 Penny Stock Pickers

There many different types of stock Pickers but the first that I want to talk about is penny stock pickers. I don’t really know the record of penny stock pickers I know that there are some famous ones that have made a lot of money.  Penny stocks are equivalent to the lottery. People buy them in hopes that they will be the next Apple or Microsoft. The truth is most companies that are publicly traded did not start out as a penny stock. Look at Facebook when it went public it opened at 30 dollars per share. It was never a penny stock.

The truth is that penny stock trading is very dangerous. We hear a lot of dream stories where someone picked the right penny stock and became a millionaire. People also win the lottery but that does not make it a good investment strategy.

 

Mad Money Stock Picks

Another famous stock picking show is the show MAD money. This is a show where a man gets in front of the camera and screams at you telling you what stocks to buy.

When I was in high school I had a coach that would yell a lot. At that time it was a pretty effective tactic to get his players to do what he wanted them to do. If I have a coach I don’t mind if he yells at me to keep me motivated and focused.

I do not want my stock advisor yelling at me. I don’t want my stock advisor slobbering at the mouth, face red, looking like he’s going to have a heart attack at any moment. That’s not what I want from my investment advisor.

 

How To Pick Stocks

So how do you pick stocks? It starts with a system. You need a mathematical system. That tells you when to buy, how much to buy, when to get out, and how much to lose. This should be known before you place a trade and before the market opens.

Top stock picks for 2015

You see this title a lot on stock picking websites. Truth is nobody knows. The top stock picks for The Market Engineer in 2015 are the ones that trend. That is really all we care about. Does our mathematical formula calculate a price trend? If so it will be a pick if not then it will not be.

 

Stock Picking Websites

There are many stock picking websites out there some are good most are bad. If you sign up for a stock-picking site make sure you do the following:

  1. Get a 2-month trial -you need two months to learn the system. You don’t want to have to pay someone when you don’t even know what’s going on.
  2. Trade the two months with paper money – you need to have confidence in the system a good way to get that confidence is to paper trade.
  3. Follow the system-Once you believe in the system then follow the system. That is one of the hardest things to do but if you do you will be rewarded.

 

What is The Market Engineer?

Our site is not a stock picking site it is a trading system. We don’t scream at you or send out picks mid market. You will know what to do (and by how much to do it) before the market opens.

 

 

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