How to Use Stock Picks (from Newsletters, Chat Rooms, etc.) -- with David Moadel
hi everybody and welcome to looking at the markets with David Modell my name is
David Modell if it's your first time checking out my channel thank you so
much I really appreciate it feel free to subscribe and also hit that bell the
notification bell on YouTube so you can get updates whenever I put out
educational financial videos like this one I'm just going to give you a few
tips because whenever I coach people I do offer coaching by the way to help you
put together a trading or investing plan whenever I coach people I get some of
the same questions over and over and over which is fine you know there are no
questions that are dumb or you know there are no stupid questions okay
I'm a former elementary school teacher I've also taught at the high school
level and at the college level and believe me there are no questions that
are dumb or ignorant okay if you are a beginner it's okay to ask questions and
if you're more advanced or intermediate it's also okay to have questions now
sometimes people tell me about a newsletter that they got or a YouTube
channel but a lot of times it's a newsletter that they signed up for and
they'll get some recommendations for stocks but sometimes it'll also be a
YouTube channel or something like that maybe it's a chatroom maybe they what
maybe they paid or got into a free chat room somehow and then they received some
stock picks stock recommendations cryptocurrency recommendations whatever
then they bring it to me and they say okay I paid for this these
recommendations should I should I buy these stocks or whatever it is or maybe
they even got it for free but they feel like because it's in the form of a
newsletter or you know a professional chatroom or whatever therefore they
should follow whatever these other people are doing because they assume
that they're professionals what you have to keep in mind is that if they give you
a bad pick whether it's a newsletter even if you paid for it
if they give you a bad pick and you lose money do you think they're gonna pay you
back you think they're gonna pay you your money back that you lost they're
not going to okay so you have to be really careful and make your own
decisions even if the person you're speaking to
has a great track record which first of all is hard to prove how would you know
they have a great track track record they're only going to show you probably
what they want to show you okay it's very difficult to know exactly all of
somebody's trades even if they show you all the trades from one account how do
you know they don't have other accounts and how do you know how they're doing in
those accounts or maybe they've had accounts in the past that didn't work
out too well and got closed down for all you know okay so what can you do with
those stock picks those stock recommendations what and and this
includes stock picks and recommendations that I might give you as well what you
can do is use those as a starting point for your own research okay I always say
our and our research makes you rich RNR it makes you rich over time not
overnight okay and and research isn't going to make you rich necessarily if
you don't apply it correctly there's a lot more to it you have to have a plan
you have to have a plan for if your stocks go up you have to have a plan for
if your stocks go down or sideways whatever and position sizing is part of
it there's a lot going on here okay but let's say you get some stock tips or
recommendations from a newsletter chat room website wherever you can take those
and use them as a starting point for your own research okay for example you
can take those stock picks and you can look at the reasons that they're giving
for those stock picks you can take those look at the reasons look at the research
they may have done and then add that to your own research or use it as a
starting point for your own research and decide okay well let me do my own due
diligence bring in the due diligence that they did and still check their
research because it might be accurate it might not be or things might have
changed from the time that they did that research until you received the
newsletter or you know whatever and things change
all the time markets move very quickly sometimes so their research might be
outdated might be inaccurate so you cross check it you double triple check
it against your own research and nowadays with the internet there's no
reason not to do your own research not to double-check everything it's not like
back in the day when you had to go over to the library to do research and look
for books whatever they had periodicals things like that no nowadays you can
look on your laptop tablet your phone you've got the world at your fingertips
a world full of information at your fingertips right there on your phone
there's no excuse not to do your own research okay so you can take those
stock ideas from somebody else even if they're a professional you still want to
double and triple check it with your own due diligence and then if you decide
okay you know what this stock passes meets or exceeds all of my criteria it
has no red flags that bother me enough to avoid the stock all right and so you
check the company and make sure that it is relatively debt-free or at least has
a plan to manage whatever debt they have and they have plenty of revenues coming
in and they have great great visionary CEO and board of directors you know the
management is great and all that good stuff all right you made sure there's
more than enough volume on that stock you want liquidity there okay things
like that you've gone through the whole list and it meets your criteria it
doesn't have a lot of red flags and you were able to check off all the
checkboxes to make sure this is a great stock and then you look fundamentally
it's a great company and then you look at the chart and you make sure that
you're not buying at the top that kind of thing you look for chart patterns or
whatever you're looking for and then if it passes your test and all your
criteria then possibly you can get in alright and even then you might not get
in okay depending on how much capital you have and how much risk you're
willing to take and that sort of thing okay so you can check your research with
somebody else's research and sometimes these newsletters and chat rooms give
you ideas for stocks or cryptocurrencies whatever that may be
you never heard of before that's cool nothing wrong with that but even then
you don't just buy something because it's in a newsletter okay and you don't
just trust somebody and or anybody really and then that includes me don't
just buy something because I like it you buy it because you love it and you
believe in it and you research to the heck out of it and you know that it's a
great company at a great price and you can be like Buffett you can be
like Warren Buffett buying a good stock at a great price or better yet a great
company at a great price that's the idea when you do that you can sleep well at
night and rest assured that since it is such a great company and you did your
research on it then even if you buy the stock at a great price and it goes down
more okay it's a great company you believe in it or you have a stoploss
okay maybe you don't believe in the company as much but you have a stoploss
and so you know what your max loss at least in theory is going to be stop-loss
orders I'm not perfect stocks can gap down below your stop-loss
limit order but still at least you can have some comfort knowing that you have
a plan in place before you place the trade alright so that's my thought on
that my name is David Modell if you like these videos I do you like it when I
just speak from the heart and speak from off the top of my head and give you
ideas like this let me know give me a thumbs up on youtube if you like this
video if you want more this sort of thing if you agree or disagree let me
know what you think and please subscribe to my channel if you haven't done it
already and hit that notification bell on YouTube and leave your comments and
also if you like some coaching if you would like me to talk to you one on one
just like this I can do that I can do that my email
address is David Modell at gmail.com thank you so much for watching and
listening I appreciate it I'll talk to you again soon