How The Best Stock Newsletters Get Their Research Information

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By Jeanette Riggs


Knowledge of the stock market is essential and the best stock newsletters are fully aware of that. Information needs to be current and accurate. Yet for the individual, there are many choices and choosing where to get advice from can be hard to chose. And choosing the right sources can end up being one of the factors that dictate if money is gained or lost on the stock market.

There is one school of thought that suggests that the key to finding out about shares is to unearth investment companies that share a similar strategy and philosophy as the investor. The thought process behind this is that if a like-minded source is found then it makes the decision-making process on what to invest in easier. For some, though, it is finding these sources that can present a problem, as there is a wealth of information out there.

In order to find like-minded people research needs to be done, information needs to be gathered. Wall Street has many analysts and this may be the best place to start. These analysts work for investment banks and are available to give advice on where to put cash and are able to sell shares to customers and tell them about the growth prospects of particular stocks. They usually work on a commission basis but this isn't always the case.

Another strand of research to look into is that of independent firms, which include companies offering access to reports, often involving some sort of subscription fee. Standard and Poor track over 1,600 stocks and it is these reports that often find their way to the independent firms and in turn to individuals interested in the market.

Newsletters can perform much the same function as any source of investment advice, they advise on which shares to buy and which to sell, giving detailed reasons. As with any financial advice, it may be wise to do some due diligence and check out the track record of the newsletter and investigate their average returns over a prolonged period.

Some newsletters sell software that can analyse data, allowing the investor to track specific stocks and perform calculations that professional analysts make. This does not take the place of investment advice but does allow a degree of autonomy. It depends on the mentality of the investor, some might prefer to go it alone.

Some think that you get what you pay for and only information that is available at a premium is valuable. If so then they won't be interested in getting their data from the Internet. Checking search engines will uncover hundreds of sites dedicated to giving financial and investment data as well as information on which stocks and shares are rising and falling. The one drawback might be that there is too much data, because without the skills to interpret it, the data means very little.

Overall, the choice about whether to get information from the best stock newsletters or an alternative comes down to trust, the investor's goals and how much is available to put into the stock market. Regardless of where the information is obtained, be it on the television, radio, an investment bank or online, the value of investments can go down as well as up.




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