Trend7
For about a year now, I have been getting Emails from website known as Trend7 asking me to subscribe to their stock picking service. Well, I recently took them up on their 14-day free trial offer, but I haven't really subscribed. Unfortunately, Trend7's investment results are uninspiring, to say the least. They currently have 8 stock picks. Of these stock picks, 7 have lost money to date and there is only one winning trade in the bunch. Their only winning investment happens to be a short stock pick.
Looking through the historical performance of the Trend7 picks, one recent trade stands out to me. On 8/18/2006, Trend7 recommend the purchase of September $39 strike QQQQ put options. These options expired worthless on 9/15/2006 resulting in a $10,020 loss for Trend7 subscribers.
Gee, I'm not going to spend $99 per month for a stock picking service that shows me how to lose $10,020 in 4 weeks. What is probably most ironic to me is that I have been essentially on the opposite side of this trade. I have recommended the purchase of the underlying QQQQ (Nasdaq-100 tracking stock) on 8/18/06, at exactly the same time that Trend7 recommended to buy put options. I am now up about 5% on my investment while Trend7 is down 100% on theirs.
Besides their abysmal performance, I don't think that Trend7 is suited to most investors. On average, they make 1-2 stock recommendations each day. So far this year, they've suggested nearly 300 stock trades. While they claimed to have made money, I have neither the time nor the energy to examine 300 data points to find discrepancies. When you choose 300 different investment positions, you're bound to have a few good winners, but I also saw a lot of losing trades in their list.
My bottom line is that I don't need a new stock idea every day. What I need is about 4-7 good, thoroughly researched stock picks a year. I guess that Trend7 goes for quantity over quality in their stock picks. In any case, it doesn't look like I will be continuing my Trend7 subscription beyond its 14-day free trial.
P.S. One more note: I'm going to give another plug here for PFStock, my favorite personal finance and stock investing blog.
Looking through the historical performance of the Trend7 picks, one recent trade stands out to me. On 8/18/2006, Trend7 recommend the purchase of September $39 strike QQQQ put options. These options expired worthless on 9/15/2006 resulting in a $10,020 loss for Trend7 subscribers.
Gee, I'm not going to spend $99 per month for a stock picking service that shows me how to lose $10,020 in 4 weeks. What is probably most ironic to me is that I have been essentially on the opposite side of this trade. I have recommended the purchase of the underlying QQQQ (Nasdaq-100 tracking stock) on 8/18/06, at exactly the same time that Trend7 recommended to buy put options. I am now up about 5% on my investment while Trend7 is down 100% on theirs.
Besides their abysmal performance, I don't think that Trend7 is suited to most investors. On average, they make 1-2 stock recommendations each day. So far this year, they've suggested nearly 300 stock trades. While they claimed to have made money, I have neither the time nor the energy to examine 300 data points to find discrepancies. When you choose 300 different investment positions, you're bound to have a few good winners, but I also saw a lot of losing trades in their list.
My bottom line is that I don't need a new stock idea every day. What I need is about 4-7 good, thoroughly researched stock picks a year. I guess that Trend7 goes for quantity over quality in their stock picks. In any case, it doesn't look like I will be continuing my Trend7 subscription beyond its 14-day free trial.
P.S. One more note: I'm going to give another plug here for PFStock, my favorite personal finance and stock investing blog.
posted by D2 at
8:00 AM
1 Comments:
dont for get to cancel your trend7 subscription.
By
Anonymous, at 6:55 PM
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