The Ten Worst Performing Stock Market Newsletters for 2007

When new investors enter into the stock market for the first time, they look for experts to give them some advice. Actually, that applies to anyone who feels they don't have the time or understand how to pick stocks or mutual funds in general. For some reason, everyone searches for the brass ring in financial gurus. They feel by subscribing to a stock market newsletter; it will give them an advantage. Whether you are reading advice in financial magazines, financial networks, or subscribing to a stock market newsletter there are several things you should consider before actually putting your hard earned cash into the stock market. Otherwise, you might end up having bought one of the top ten worst performing stock market newsletter for the year I have listed for you below.

Four Tips for Selecting Stock Market Newsletters

1. Always look for a free trial to the newsletter; however, never give them your credit card. Some newsletters ask you for all the information as if you were subscribing with payment and tell you that you can cancel after your free trial is over. There is no need to choose a newsletter like this. It's a sales gimmick. If they are good, their performance will convince you to subscribe.

2. Check their record several years back. See if they have gone through a tough bear market year and how they preformed. You have to be aware of the hyping of stocks through their newsletter. One way you can tell is by reviewing their past performances. I would suggest seeing how they have performed in a tough market, like in the year 2000 and 2001 when we turned into a bear market. The Dow started at 11,000 and went down around 8400. Or look in the years 2004 and 2005 when we were in a flat market trading within 10,400 to 10,900. If they had good performances when the market was flat to down then that shows good risk/reward management. Make sure you understand their time horizon, whether they are short term trading or long term investing.