is this a good idea?...stock market?

Question

Whats up guys? I need some input about these online brokers. This is an email I sent to a friend. If anyone can enlighten me on whether or not its worth it to pay these guys 200$ a year, I would appreciate it.
I visited http://rollercoasterstocks.com/ I dont know what to think of it right now, its got its goods and bads. If this guy made as much money as im getting the impression...1) sure follow his picks, you cant go wrong. but 2) he probably is just half-assing it now that hes supposedly rich and doesnt need your, (or anyone elses 200$), which makes me a little skeptical. The main thing I dont like about it is that he only gives you 3 picks a month for 200$ a year. Penny stocks are very vulnerable to "pump and dump" scams, and this is an easy oppurtunity for him to pull that off, by selling after everyone on his mailing list has bought sending the stock price higher than it should be. A lot of the charts are deceiving too. Some of the picks he has recommended have gone up when he supposedly recommended them, but theres nothing guaranteeing he didnt recommend them 10 years before their substantial increase. (in which time the stocks could have gone down, and many investors could have sold resulting in a loss.) This is basically a case of making a stock pick, and waiting it out years until it looks good, and saying..."i recommended it" Anybody can make a pick that Eventually goes up, which allows him to advertize... The 98% track record for gains. Another thing he isnt telling you is when to sell. These 1000% gains on stocks are from the low to the high. I looked at a few charts of stocks he recommended, and some have gone down significantly since the HIGH he is advertizing.
I have no idea how much a broker costs, but thats what this guy is. If you think you need a broker, I would look into that before jumping into rollercoasterstocks. There are messageboards on yahoo/finance, and Im sure the people on there can give better opinions of ideas like this, and rollercoasterstocks in particular. (In fact, I might post this whole message on there and see what they have to say.) Or better yet, put money into mutual funds. That way you already have a broker making picks for you. Also, some mutual funds dont charge fees, and usually the broker owns shares of the mutual fund, so he only gets paid if it goes up.
good luck, if you decide to do this.
-cm

Answer 1

So you've got bad vibes about it, move on. No need to write a dissertation.

Answer 2

As an introduction...it is a "bit" longwinded...

The bottom line is this:
Your $$$$$, your decision
and don't forget the old adage that if it sounds too good to be true, it probaby is.

There is a plethora of info about investing -for free- at any number of reputable sites....
If you are a novice-which I doubt due to your analysis - then put your $$$$$$ into a few index ETFs

If you are a knowledgeable investor...what's your point?
If you are harping about an expensive stock selection process,
???? They exist to take your money...and if you happen to make a profit...sheer happenstance....

Answer 3

Stock tipsters have 1 chance in 2 of being right the first time you try them and 1 chance in 32 of being right 5 times in succession.

This is all they need to retain the confidence of fools and keep them in their mansions, toasting them in champagne.