In recent years, stock picking has become somewhat of a sport. With so many investors are looking to make quick money in the stock market, the business of selling stock picking software has boomed. If you trade stocks or have ever investigated trading stocks, you will have probably seen the numerous adverts online and on the TV for automated stock picking software.
Unfortunately, when it comes to stock trading software, the internet is full unscrupulous people trying to sell you software, that to put it politely is not worth the money. My goal in writing this article is not to put you off the idea of using stock investing software, but to try to help you avoid some of these con-artists and have a realistic idea of what is likely to be genuine and what isn’t.
The rule of thumb in investing – and in life – is that if it seems to be too good to be true, then it probably is. Any software that is going so far as to guarantee you returns is exagerating at best, and flat out lying at worst. You must always be prepared to due the necessary research into each and every investment no matter what a computer program or advertisement tells you.
Online Stock Picking Software
I generally believe investing software is only as good as the trader and programmer who made it. Despite many programs claiming to be the “Best stock picking software”, very few of these programs actually pick the stocks for you. They usually look at many different factors and suggest stocks that best fit a predetermined criteria.
Despite their claims many of these investment programs are not very good. It would be wrong and probably illegal to make any guarantees regarding the potential performance any trading system or piece of software, so if you ever see this, it really is the ultimate red flag.
Many companies trying to sell you stock investment software do refrain from doing this, but instead they often show people with expensive cars and houses that used the money they made using the stock picking software to buy it. I’m not saying they are all lying, but I would urge yourself to ask the question “If i’m honest with myself, how likely are these claims to be genuine?”
Many of these programs that claim to be the best investment software ever, often claim the users of the software having made extraordinary returns on their money. Be careful to read the fine print and to always judge for yourself whether a stock is worth investing in.
Whilst i’m not saying this is impossible, I ask you again to think about it, some of the top wall street traders make 35-40% consistently for their financial institutions, these traders are considered to be some of the best in the business.
Despite this i’ve seen claims from companies selling their software all but guaranteeing much higher consist ant returns. Approach stock picking software with a healthy dose of skepticism, and if you uses stock picking software, utilize it in conjunction with other investment tools and research. A multi-step process of using stock screeners, stock picking software and due diligence can put you in a position to realize greater returns.