Read Stock Market Newsletters
Millions of investors read stock market newsletters every week. Millions of investors use stock market newsletter recommendations as their primary source for positioning trades. Why? Because they are looking for something or somebody to direct them on where to place their money. What is the basis for investors subscribing to stock market newsletters? It is usually hearing that the author of that newsletter has been making some good picks recently. The subscription numbers to the stock market newsletter shoot up for a while. Everybody is hoping that the author will continue the better than average performance.
However, the history of stock market newsletter recommendations is not very good. There are two basic flaws portrayed in a portfolio of stock market newsletter recommendations. First, consider what a stock market newsletter actually is. It is the evaluation of somebody analyzing what sectors or stocks should be doing well in the future. It can often be found that when stock market newsletters recommend a stock, they very rarely provide the criteria for getting out of losing situations. Their promo material exalts the winning trades but never mentions the losing trades. Secondly, most investors become familiar with newsletters when they are doing extremely well. That creates one major problem. When that newsletter track record starts going sour, the investor is right back where they started, not knowing what to do next.
As people may recall, Joseph Granville had a huge following in the late 1970's and early 1980's. He was constantly calling for a huge market crash. His flawless indicators kept indicating that the crash was coming as the Dow moved from 750 up to 3500. His subscribers took hellacious losses. Gilder was a god of the stock market newsletters with his picks in the high-tech area in the late 90s. Investors made a fortune with his recommendations as the market was going up and they lost fortunes after the crash of the Tech stocks in 2001.
The Candlestick Forum provides a newsletter that hopefully not only provides insights into the direction of the markets and stocks, but also educates investors on how to produce their own evaluations. A stock market newsletter should provide information stock market data that an investor can take with them for the rest of their life. It is great to be provided with information that can produce big gains. It is just as important to gain an understanding of how to deal with trades that aren't working. This newsletter that you are reading now, as well as the Candlestick Forum website, tries to illustrate how to participate in big profit trade situations and how to quickly eliminate the loss situations.