Despite what some financial gurus have to say, we still believe we are in the midst of the golden age of investing. And this belief is well-founded.
Mobile apps, the longest bull market in US history and retail investing at an all-time high combined have contributed to a growing number of traders. A number that is likely to keep increasing in the future.
With instantaneous, commission-free trading in the palm of your hand, there is no reason you shouldn’t be letting your money work for you. And one way to do this is with one of the best stock research websites.
Evolution of Trading by the Decade
The evolution of human beings is seriously debated. But what one can’t deny is the evolution of the stock market.
The 1950s saw a generation still wounded from the crash of 1929. Only 6.5 million Americans owned stock in 1952. The only way to obtain stock was through a broker.
Though the mutual fund boom was still years away and investing overseas was literally a foreign concept, the “cultural decade” was finally getting over the Great Depression. At this point in history, trades were made by literally exchanging physical certificates. This was followed by a frustratingly slow execution time.
The volumes of paperwork were becoming unmanageable for stock brokers. Something had to change.
Technology was incorporated into the stock market in the 1970s. The Depository Trust Company was created in 1973 to reduce paperwork by holding trades in electronic form. In short, the implementation of technology paved the way for the golden age to enter the 80s.
The Golden Age of Investing
Despite the lack of a fundamental investing tool such as a stock screener, the advent of the golden age was in the 1980s.
Trading floors were overflowing with young, ambitious and greedy traders looking to make a name for themselves. This was also the beginning of electronic trading–the start of the digital revolution in financial markets–though still in its infant stages.
Fast forward to today. Online personal investing has become a norm and makes the need for a stock broker sound ancient. In fact, over 70% of market volume today is derived from online platforms.
This shift makes trading incredibly simpler. But as the old adage goes, “What is simple often isn’t easy; what is easy often doesn’t last.”
Becoming a trader requires a learning curve and takes hard work. You will need to familiarize yourself with stock screeners and investment newsletters. More importantly, however, you will need to find a stock research website.
Best Stock Research Websites
The retail investor works toward financial independence based on knowledge and hard work. Retail investors aren’t professional investors. Meaning, they’re on their own.
But the tools available today can give the retail trader some peace of mind. Everything needed is at your fingertips. One tool is a stock research website.
Here are a few of our favorites.
Motley Fool
The Motley Fool has been providing financial advice and investing insights for over 25 years, making it one of the oldest stock analysis websites on the market. The paid subscription, Stock Advisor, gives you exclusive content sent directly to your email.
The content includes:
- Two picks per month
- Justification as to why you should invest in those picks
- Past stock picks
- 24/7 monitoring
Additionally, Motley Fool offers free educational resources for you to further develop your strategy and enhance your skills.
Seeking Alpha
Started in 2004 by financial analyst David Jackson, Seeking Alpha offers a unique approach to stock analysis that you won’t find anywhere else. The concept is simple: let investors themselves conduct their own analysis and discuss the merits of each one.
This is how Seeking Alpha differs from its competitors–it mainly relies on crowdsourcing research from the “world’s largest investing community.”
Membership to Seeking Alpha comes in three forms: Free, Premium and Alpha Picks.
Premium subscribers have access to a “Quant Rating.” This details Seeking Alpha’s “Strong Buy” and “Strong Sell.” The “Strong Buy” stock picks are up 1,754% compared to the market’s 300% since 2010.
Pro tip: Don’t buy a stock without viewing the Quant Rating first.
TrendSpider
Another unique platform, TrendSpider uses AI to generate chart patterns, trendlines and Fibonacci. Additionally, TrendSpider even analyzes stocks for you.
Part of its uniqueness is how TrendSpider charts stocks–it utilizes a more technical analysis instead of fundamental. Translation, it charts stocks based on specific patterns that are optimal for day traders. Other features of TrendSpider include:
- Automatic multi-frame analysis
- AI-integrated pattern recognition
- Exceptional charts and indicator selection
- Automated trendline detection
The technical analysis of TrendSpider is its greatest strength, however, if you’re not familiar with this complicated analysis, it could be your greatest weakness. TrendSpider is recommended for aspiring day traders.
Conclusion
We live in an era where trading takes seconds instead of hours. In the land of opportunity, it should be our duty to take advantage of this.
We have the power to play stock brokers. But with great power comes great responsibility.
We won’t make it very far as traders if we don’t put in the work. Subscribing to a stock research website is the first step of the journey.