To back their point of view, the opponents of stock picks web sites often give three kinds of reasons.
First, they argue that the investing strategies of many stock picks web sites are not clear. They are also new trend. This makes difficult to track their performances. There is few data to measure their performances. This is a main drawback of these sites. However, an investor can use paper trading or stock watching as a way to measure the performance of these stock picks web sites. A watch list is a list of stocks you do not own but want to follow their performances, with the possibility to buy them in the future. By taking time to see how a watch list created with the stocks recommended by these web sites performs, you can track their records.
The second reason is more solid. Stock picks web sites are the most of time a work of amateurs or of sol operators. That allows some professionals to say that they are not serious. They did not have their place among the tools of stock investing. However, we know that the obtaining of a financial degree is not a guarantee of success in stock market. The current financial crisis and the Madoff's fraud are good lessons. In addition, when you look at the history of stock market successes, you will find stories of investors who succeeded superbly. The most of time, these people have no financial Degree. They owed their successes to only their experience, discipline and passion. More important, they have an advantage on professionals. They are free of the sales pressures of big teams.
The third reason points out the effort to follow many stocks efficiently. It is hard for an investor to choose the best stocks to buy from the amount of the stock picks he receives daily. We must admit however, that stock picking web sites are investment tools. The potential return of their stock picks depends on how well informed is the investor. Only an experienced and a skilled investor can profit from the opportunities offered by these web sites. For instance, based on his skill an investor could decide to invest only on stock picks that satisfy its strategy. He could also use other analysts' opinion to filter out these stocks picks.
In conclusion, a well-informed investor can manage the weak points of stock picks sites. These web sites are useful investing tools. They deserve thus a better place among the tools of stock investing.
Christian Bayonne is a do-it-yourself investor, who has been investing in stocks for the last 10 years. He is also the co-owner of the site http://www.stockonrise.com .