Why We Decided to Forever Set a New Standard for Stock Pick Advice
StockTax was founded as a stock pick service to provide active traders with access to above average returns in the stock market using a proven no-nonsense approach.
We found that the majority of stock pick advice available to traders was lacking and at times unscrupulous. The stock trading industry has it's fair share of pitfalls; not only is trading itself a challenge but the industry is full of panderers with questionable business practices.
StockTrax is the first stock pick service that strives to not only produce market beating performance but we also educate traders on why they should focus on performance for any source of stock pick advice.
Some of the stock pick provider tactics we frown upon:
- No performance results whatsoever - These types of providers rely primarily on glitz, glamor, hype and personalities to sell their offerings. Jim Cramer is the most famous of these types of providers.
- Disclosing just the winning trades - This is the most common selling tactic. Nothing is wrong with highlighting winning trades but prospective customers should still have access to all trades including losing trades.
- Providing just back-tested results - There is no real-time performance or the back-tested results were curve-fit to historical data. This means the past performance looks good but the results are not likely to perform the same on real-time trade data.
- Recommending impossible trading activity - For example, the service may recommend 10 trades at once but they don't advise you how to allocate capital for each trade so it is impossible to know how much to invest in each trade ahead of time.
- Offering an unproven stock trading education service - Once again, there's nothing wrong with a stock trading training service but one with no proven track record is questionable. Curiously, selling with no track record of any type has become the norm for stock training/education services.
- Using analysis and news as a proxy for results - Some services simply don't pull the trigger. They comment on the current news and they perform endless analysis of charts but they never really say when to get in or when to get out. They usually just move to the next news headline and stock chart and never follow up on past analysis. CNBC makes their living doing this.
StockTrax"A well known statistic is that 90% of traders lose money. You have to do something different than most traders if you want to succeed."