The ONLY Penny Stock Newsletter and Alert Service Review You Need to Read:
Having used and reviewed dozens of the best penny stock newsletters and alert services over the past ten years, I can say with certainty that most subscribers experience disastrous results – both emotionally and financially.
The disturbing results for the majority of subscribers made me start thinking about the criteria that other review sites use to sell, I mean rate, these services. So I did some research myself and started browsing Google with search terms like “top penny stock newsletters” and “best penny stock alert services”. Not so surprisingly, I saw the same patterns over-and-over again.
The reviews I found use terms like “transparent”, “easy to follow”, and “proven track records” to build your trust in these services. But what they conveniently fail to mention is the truth about how these services often prey on your underlying desire to get-rich-quick, and how they generate outsized profits at the expense of you and most other oblivious subscribers. We’ll dig deeply into this below.
As I alluded to earlier, the first thing you need to realize is that most reviews you find online most likely won’t be genuine. That’s because the reviewers are affiliates, meaning they have a financial stake in your decision to subscribe. In other words, they receive a commission when you sign up, so their “ratings” are biased. In many cases, they haven’t even used the services themselves.
It’s my goal that within this review you’ll understand exactly what you’re getting into with penny stock newsletters and alert services, the pros and cons of them, and if they actually have the capability to be effective tools for you as a trader.
5 Common Components of the Top Day and Swing Trading Newsletters and Alert Services:
I don’t want you to think that all penny stock newsletters and alert services are totally good or totally bad, because the truth actually falls somewhere in the middle. If you decide to seriously pursue them, I want you to make a well-informed decision.
Right now, I’m generalizing all penny stock newsletters and alerts services with their common components. I’m not singling out any one particular service in this section. But after reviewing dozens, they typically have the same offerings. Below I’ll provide an overview of what those offerings are, along with the knowledge to spot the good components from the bad.
The components themselves do matter, but what matters much more is how you personally choose to use them.
1. Real-Time Alerts
The real-time alerts are the dominant draw for subscribers of these services. I know because this is exactly what I was looking for at the start of my trading journey. Looking back, it’s hard to believe how naive I was. I remember just how excited I was to subscribe to my first alert service. Even though the cost was $100 per month, I knew it would be negligible after I captured some “explosive profits”. But my profits weren’t explosive at all. In fact, my profits were nonexistent – I was losing money instead.
This is a common occurrence amongst new traders. My mind was solely locked on profits, but my desires only inhibited my success. I was so wrapped up in the outcome of every trade that I completely ignored the process required to become a consistently profitable trader. My get-rich-quick mentality led me into the bait. I fell for shortcuts and paid the price. I’m well past the point of feeling sorry for myself, but I hope my experience allows you to be more prepared. I’ll discuss the dynamics of alerts further in the next section.
2. Courses and Video Lessons
Assuming the head traders or self-proclaimed gurus running these newsletters and alert services actually know what they’re talking about, then their expertise should show up within the courses and video lessons. If their methods and systems are legitimate, this is one of the main components you should be using to educate yourself on the path to becoming self-sufficient. Trouble is, the vast majority of subscribers don’t even take the time to go through them.
Most subscribers get caught up in trying to copy alerts and don’t think anything else really matters. But if blindly mirroring alerts really worked, way more people would be profitable traders. It’s just too good to be true. There’s much more to long-lasting trading success than merely copying alerts. Working through various courses and video lessons is a great start that can provide you with a base of knowledge. But the urge to copy alerts is often too strong, and as a result, the video lessons quickly get forgotten and neglected.
3. Daily Watch Lists
The daily watch lists can help reduce your trade-able universe down to a small handful of stocks per day. Considering that there are thousands of stocks to potentially trade, this can be a great time-saver. The watch lists also tend to reiterate the various topics and setups taught in the video lessons, so these can be a great educational tool for subscribers as well.
That being said, most subscribers misuse the watch lists, essentially treating them like buy alerts instead of just potential trades. I know many subscribers to newsletters and alert services that simply bought every stock listed on the watch lists every day right at the open, hoping the head trader of the service would buy at least one of them throughout the trading day in order to drive the price up. This certainly isn’t the intent of the watch lists and another example of people trying to game the system and find shortcuts.
4. Chat Rooms and Live Trading Sessions
Chat rooms and live trading sessions can also go both ways. The chat room itself can potentially be a great learning environment where novice traders can interact with more experienced traders, ask questions, and be mentored. In addition to that, live trading sessions can give you inside looks at exactly how full-time traders operate throughout the trading day. But as much as they can be educational, they can also be another breeding ground for those looking to copy-cat trade.
At this point, I’m sure you’ve recognized the theme here that most subscribers are mainly concerned about copying alerts. The video lessons tend to get ignored, while the watch lists, chat rooms, live trading sessions, and alerts get misused. When these services get too big, attracting too many members, it also causes many problems. In relation to the chat rooms specifically, one issue is that they become full of new members asking the same “beginner” questions all the time, and it impedes growth for the rest of the group.
5. Webinars and Ongoing Mentorship
The webinars and ongoing mentorship are a critical educational aspect of these services. If you truly want to grow as a trader, then you’ll want mentors who are consistently available to field your questions and guide your development. This might not come as a surprise, but recurring weekly or monthly webinars only attract a small percentage of subscribers. It’s possible that some members legitimately have scheduling conflicts, but I think it’s more the result of an unwillingness to put in the work.
It’s so easy to get caught up in the potential rewards that can come from trading and completely disregard the process required to get there. Everybody wants the money and everything else that money can provide – material possessions like cars and houses, or even just feelings of security. It’s effortless to have these desires. Then we hear about newsletters and alert services, and think they can deliver our dreams with little to no effort. Unfortunately, the market doesn’t allow you to cheat the process.
The #1 Mistake Subscribers Make – Trying to Blindly Mirror Alerts
The main point to take away from all this is that your ultimate trading success highly depends on how you choose to use these services. There can be some great opportunities for education within the courses, watch lists, chat rooms, live trading sessions, and webinars, but most subscribers either ignore the educational aspects or try to twist them into some kind of shortcut.
I’ll admit that there’s fault on both sides. It’s not just that most subscribers are lazy or averse to learning, but they usually subscribe under the pretense that all they have to do is copy alerts in order to be successful – that’s what the marketing told them. When they realize that approach isn’t actually effective, they don’t want to put in the work to become self-sufficient. They simply feel deceived.
3 Brutal Truths to Explain Why Penny Stock Newsletters and Alert Services Don’t Work:
1. The Services Are Enticing Because Your Get-Rich-Quick Dreams Are Easy to Have
Like I mentioned earlier, it’s extremely easy to have dreams of making lots of money in the market and enjoying the benefits of huge rewards. It’s completely painless to do this. In fact, it brings the opposite of pain – you feel excitement and joy. This can be a huge opportunity. Your financial worries will all disappear, your parents will finally take you seriously, your spouse will appreciate you, your friends will admire you. You’ll finally get the wealth, status, and recognition you deserve. See how easy it is to dream?
2. The Services Seem to Promise Exactly What You Want – Alerts You Can Easily Follow to Capture Huge Profits
We’ve acknowledged that you have these wonderful dreams of financial success, but now you need a path to achieve it. Enter numerous newsletters and alerts services promising “hot stock alerts”, “foolproof systems”, and “explosive profits” – aligning perfectly with your dreams. And the head traders seem to have a phenomenal track record to prove it. So how hard could it be to receive a text or email and just copy their trades? Why wouldn’t it work? Your wildest financial dreams are just a subscription fee away from coming true.
3. The Services Don’t End Up Working Like You Expect and You Feel Deceived
Usually after just a few days or weeks, you realize that the service isn’t working exactly like you expected. In many cases, it’s not “working” for you at all. It’s not just that your profits aren’t nearly as large as you were expecting, but they might be nonexistent. You’ve paid a subscription fee and now you’re losing money on your trades at the same time. You thought you’d easily pay for the service fee with just one big win, but in reality you’re bleeding money.
This is why it’s so important to understand the dynamics of “real-time” alerts. In theory, it seems great to just be able to mirror some guru’s trades. But it’s not so easy in reality. You see, when the head trader enters a trade and sends out a buy alert, thousands of followers start piling in behind him. Before you know it (and I mean this literally), the stock price has already been driven up 5%, 10%, maybe even 20%+. Just the one minute it takes to read the alert, open up your brokerage platform, and execute your order can make you miss the trade. If you enter too late, you might get caught in the inevitable dump when the sell alert comes out.
The only people that make out are the ones who anticipate the alerts or enter within seconds of them, which is typically reserved for a small few individuals closely monitoring the chat rooms or live trading sessions. The text and email alerts aren’t really “real-time” at all. They might only be delayed a few minutes, but they’re a critical few minutes. Your opportunity has already dissipated.
The method of blindly copying alerts, which is clearly what most people want, might work well with blue-chip stocks or other securities that can easily absorb the buying and selling pressure, but that would involve longer hold times and lower profits. It’s just not as easy to sell a service like that than one focused on penny stocks with massive volatility and profit-potential.
10 Lessons From 10 Years of Using and Reviewing Penny Stock Newsletters and Alert Services:
#1 Don’t be dependent on alerts. Focus on self-sufficiency. If you’re waiting for an alert to take action, it’s already too late. Blindly mirroring alerts sounds awesome, but it doesn’t work. Don’t fall for it. Instead, be committed to building core skills and mindset.
#2 The websites for newsletters and alert services tend to look clean and professional, prominently displaying their explosive returns. But keep in mind that those returns are distorted based on alert dynamics. This destroys the validity of most track records.
#3 If hot stock newsletters and alerts were actually the secret to success, then everybody would be using them and over 90% of traders wouldn’t be losing money. The path to consistent profitability requires effort that most people aren’t willing to make.
#4 Most people that join are buying the idea of easy profits, and if that’s the case, they will most likely lose money. You can’t cheat the market. It knows if you’re obsessed with results or focused on the process. Be process-focused.
#5 If these services didn’t brag about their own explosive profits or tell you that you can easily follow the alerts, then you wouldn’t subscribe. People buy things that sound easy, not what sounds hard. They’re in a battle for subscribers.
#6 Other reviews you read online will highlight the positive aspects of these services without focusing on the negative because they’ll receive a commission if you subscribe. In fact, many reviewers will simply push products and services that pay them the highest commission. I’m not saying that all reviewers have ill-intent, but just be aware of this.
#7 The use of “real money”, having a “proven track record”, and offering “transparency” in the form of watch lists, live trading sessions, and real time alerts all sound nice, but don’t tell the full story. These services actually have a financial incentive to trade with real money because thousands of followers will subsequently pile in behind them on every trade, which skews results in their favor.
#8 At the same time, if these services didn’t use real money portfolios or send out alerts to subscribers, then they would get criticized for “not having a dog in the fight” or being transparent. I’ve seen this happen a handful of times.
#9 If you’re in love with the potential rewards, but don’t want the process required to get there, then you should avoid trading. It’s easy to want consistent profits, but it’s hard to do the things consistent profitability requires.
#10 Pain serves a purpose. If you’ve suffered through financial and emotional pain from trading, that means change is necessary. You need to grow and evolve into a trader that is aligned with true market characteristics and not in conflict with them.
Best Free Stock Market Advice – Focus on Obtaining the Proper Mindset First:
If there was only one thing I could recommend to new traders, it would be to take The Advanced Traders Mindset Course first. I say this for a number of reasons. The first is that new traders disregard the importance of obtaining the proper mindset even though it’s the foundation for sustainable trading success. The second is that it’s relatively cheap in comparison to the cost of alert services, especially the subsequent bad trading based on those alerts. And the third is that it will open your eyes to the realities of successful trading.
Even if you decide not to further pursue trading after understanding the mental and tactical aspects of it, this course can still help you improve many other areas of your life. It’s geared toward traders, but the main concepts apply to everybody in any environment. Most people tend to forget that trading is almost entirely a mental game, so training your brain is critical to success. Trading also requires you to operate in a new environment that you’re not used to and has unique characteristics. Most traders fail by failing to adapt.
5 Popular Stock Trading Communities, Sometimes Referred to as Newsletters/Alert Services:
At this point in the review, I feel comfortable sharing a short list of stock trading communities available online. If you’ve made it this far, hopefully you’ve thoroughly read through each section to understand the true nature of newsletters and alert services. None are totally good or totally bad, but I’ve provided you with a comprehensive view of how they tend to operate, what they typically offer, and how you should go about using them if you choose to.
I’m not providing these in any particular order because they’re truly hard to objectively rate. They’re constantly evolving with new or adjusted offerings, prices, and more. There are also a number of factors that will determine your fit with any of these programs. We all have differing personalities, preferences, risk tolerances, and portfolio sizes, among many other things. But most importantly, your overall results are predominantly dependent not on the particular service itself, but how you choose to use it.
Investors Underground (Head Trader: Nathan Michaud)
Jason Bond Picks (Head Trader: Jason Bond)
Biotech Breakouts (Head Trader: Kyle Dennis)
Penny Pro (Head Trader: Jeff Williams)
Warrior Trading (Head Trader: Ross Cameron)
My personal recommendation is to review these services on your own, and that doesn’t necessarily mean spending money on them. Most of them offer free guides, blogs, and courses in order to get a feel for what they have to offer. You’re much better off going through this process and deciding for yourself than trusting a slanted review.
For example, one particular review I read covering a legitimate trading service had a “con” listed as “requires you to learn the real art of trading”. That’s not a con, that’s just how achieving consistent trading success works. Throughout this review, I hope I’ve given you the information to know exactly what to look out for and how to use these services effectively if you choose to subscribe.
One final note about these programs is that they are more than just alert services, so make sure you use the educational aspects of them to your advantage. In all seriousness, you’re probably better off not even signing up for the alerts at all. Instead, focus your energy on the video lessons, watch lists, webinars, ongoing mentorship and other educational components for your own growth and development. Dependency on alerts is dangerous and unsustainable. Self-sufficiency should be your ultimate goal.
Conclusion – Understand What You Are Getting Into With Penny Stock Programs:
Here we are. You made it to the end. I’m glad you stuck with it. There’s no doubt that reading this has most likely saved you hundreds, if not thousands, on not only subscription fees, but also trading losses.
I didn’t write this review to knock these services, but I think it’s only fair that potential subscribers see the complete picture. It’s not all “explosive profits” while you sit on your couch watching Netflix. That rosy perspective is what makes these services so popular, but once people subscribe, they don’t often become consistently profitable traders. There’s real training involved in getting there.
There are a select few individuals who use the educational aspects of these services correctly and end up achieving massive success in the market. But it takes a certain level of commitment, awareness, and control. You can’t let the fear of missing out tempt you into random and undisciplined trades. In the end, results can vary widely amongst subscribers depending on how they approach it.
It’s interesting to me how people can be put into contact with the same information and experience drastically different results. The discrepancy has everything to do with mindset. A small percentage of subscribers with the proper mindset end up becoming consistently profitable traders, while those with the get-rich-quick copy-cat mentality fail. You hold all of the control.
Please share your personal experiences with any penny stock newsletters or alert services in the comments section below. I’m very interested to hear your stories. I’d also like to know if this review has had a positive or negative impact on your trading journey.
Written by Matt Thomas (@MattThomasTP)