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So, is StockInvest.us any good?
Can you really trust the buy and sell signals from StockInvest.us?
More importantly, can it really help you make money trading the stock market?
Today, I am going to help you answer all these questions after trying out its service and testing out its trading signals.
What Is StockInvest.us?
StockInvest.Us was founded in 2016 in Vilnius, Lithuania.
Basically, it issues buy or sell signals for the short term(i.e. 1 to 3 weeks) on over 30,000 publicly traded stocks across 35 stock exchanges(e.g. NASDAQ, NYSE, TSX, ASX, etc) by running technical analysis as well as proprietary algorithms.
Designed to help traders find trade ideas easily and quickly, it provides you with both bullish lists and bearish lists.
Under the bullish lists, you can find all the Top Buy Candidates ranked by its proprietary score.
You will also find potential buying opportunities based on its proprietary signals such as Golden Star as well as other popular indicators such as Pivot Bottom, Double Bottom and Bollinger Breakout.
Under the bearish list, you can find all the Top Sell Candidates as well as potential selling opportunities based on popular indicators such as Double Top, Death Star and Bollinger Breakout.
How Does StockInvest.us Work?
StockInvest.us Top Buy Candidates
StockInvest.us run its proprietary algorithm on over 34,000 stocks listed on many different stock exchanges.
Then, it assigns a score of -10 to 10 for each stock:
- 5.00 to 10.00: ‘Strong Buy’
- 1.00 to 4.99: ‘Buy’
- -0.99 to 0.99: ‘Hold’
- -10.00 to -5.00: ‘Strong Sell’
- -4.99 to -1.00: ‘Sell’
This score is generated from running its algorithms on several technical indicators like moving averages, trends, volumes, pivot points, RSI and others.
Below is a screenshot of what Top Buy Candidates look like on 12th July 2021.
By the way, I am only showing the Top Buy Candidates for Nasdaq and NYSE.
So there might be other stocks with a higher score (i.e. a stronger buy) from other stock exchanges.
Now, if you click on one of the Top Buy Candidates, it will bring you to a technical analysis report for this stock.
Below is the chart for the stock ticker TROW – T.Rowe Price Group on 12th July 2021.
From the “Top Buy Candidate” list screenshot above, you can see that this stock is ranked No.1 on Nasdaq with the highest score of 9.15 on 12th July 2021.
Now, let’s see what happened to this stock the following day which is 13th July 2021.
Its score has dropped to 1.73 from 9.15 in one day, and it has been downgraded from Strong Buy to Buy candidate.
At the same time, a “Sell” signal was issued from its pivot top point at $211.10.
So, if you had followed the “Strong Buy” recommendation, you would have lost money the next day.
Now, for a “Buy Candidate” with a “Sell “signal, it’s just too confusing to execute a trade.
Personally, I preferred more specific and clearer trading signal service.
Let’s move on to talk about the technical analysis commentary for the stock.
The format for the technical analysis is the same for every stock, which is a chart followed by a few paragraphs of AI-generated commentary.
In the technical analysis commentary, you will find the following:
- Recent price movement (i.e. not very useful because this is something you can easily tell by looking at the price chart yourself)
- Signals & Forecast (is it useful? Let’s look at it in great detail below)
- Support, Risk & Stop-loss (is it useful? let’s look at it in great detail below)
- Fibonacci support & resistance level ( i.e. not impressed because you can find these price levels using any decent trading software such as TrendSpider or Trade Ideas)
- Accumulated volume support & resistance level ( i.e. not impressed because you can find these price levels using any decent trading software)
Below is a screenshot of the technical analysis commentary.
As you can see that, it briefly comments on the moving average indicator as well as the MACD indicator for the “Signals & Forecast” section.
For “Support, Risk & Stop-loss”, it just summarises the nearest support and resistance levels, which you can easily tell from the chart.
Personally, I don’t find it very impressive.
Anyone with some basic technical analysis knowledge and charting software can write this commentary.
StockInvest.us Golden Stars
Next, let’s look at the StockInvest.us Golden Stars signals.
From what I’ve read from its website, it’s an improved version of Golden Cross by StockInvest.us founder Jim Stromberg.
So, what is Golden Cross?
Golden Cross occurs when a short-term moving average crosses over a major long-term moving average to the upside and is often seen as a bullish signal.
By adding more conditions such as liquidity, time and volatility, a Golden Star signal was born.
According to the website, Golden Star signals are very rare.
In 2016 (where is the most recent data??), less than 5.3% of the stocks were issued a Golden Star signals while more than 40% of the stocks were issued a Gold Cross signal.
Now, my question is that, how profitable are these Golden Star signals?
So far, I’ve not found any performance records on the website.
Without any hard proof of this signal being very reliable and accurate, I find it hard to place trades based on this signal.
StockInvest.us Possible Runners List
This is another bullish list that helps you find stocks that might be going on an uptrend.
This list is generated based on a set of criteria that involves indicators such as RSI, Pivot Point and Volatility.
Again, I cannot find any performance records for this buying signal.
If you are a seasoned trader, you can actually create your very own list based on these criteria using Trade Ideas.
What is more, you can use it to run backtests to see if there is an edge in this trading strategy.
This automated portfolio feature is still in beta testing stage.
How this works is that stocks are being picked automatically based on the score system.
Then, the stocks will be filtered depending on the setting of the portfolio.
When the score becomes negative or the stop-loss condition is met, the stock will get sold and then replaced.
Let’s look at the “Top 5 Buy Candidate 2021” Portfolio which started on 4th Jan 2021.
There are a total of 5 stocks in the portfolio at any time.
But what that means is that NOT all the daily top 5 buy candidates will be in the portfolio because there is a limit on the number of stocks in the portfolio.
The year to date performance for this portfolio so far is quite decent.
It is up 18.84%, compared with Nasdaq’s return of 15.33% for the same time period.
However, I feel this methodology is kind of flawed and does NOT accurately reflect the performance of the “Top Buy” list because not all the Top 5 Buy Candidates are included in the portfolio.
As for other automated portfolio, the number of stocks in the portfolio is too few to be taken seriously.
Now, let’s look at StockInvest.us pricing.
There are three pricing options:
- $19.90 Monthly
- $199 Yearly (i.e. $16.58/month) with a free 14-day trial
- $597 for Lifetime Subscription
If you are a day trader and have a bit more budget, I highly recommend Trade Ideas which is probably the most powerful stock scanners in the market.
StockInvest.us Vs Motley Fool
So, let’s compare StockInvest.us with other popular stock research services such as Motley Fool.
The key difference between StockInvest.us and Motley Fool is that StockInvest.us is designed to give you buy and sell signals for the short term solely based on technical analysis while Motley Fool gives you specific stock buy recommendations that you should invest and hold for the long term.
If you are a day trader or swing trader, then Motley Fool is probably not right for you.
But, if you want to invest for the long term, then I recommend Motley Fool Stock Advisor because it has years of proven records of outperforming the market.