Investools scam? yea or nea

I wanted to tell you my personal experience with Investools. I have been involved with stock trading for 30 years so I have some insight into the online stock trading industry. I saw the TV commercial like most of you and went to the free seminar. I assumed I would get an upsell. Which I did. I walked in and this well tanned gentleman form orlando spent 2 hours talking about stock option trading and specifically about buying spread options around earnings reports. Not a bad method, but one that can be hard to find opportunities in todays volatile stock market. You see, with the increased volatility of the recent stock market, options prices have increased therefore the price of a spread has increased. Now they promise to give you stock trading software that will find these opportunities for you. They don't mention that that will be an extra $3000 for that stock trading software!

Back to my experience, At the end of the two hour spiel on stock option trading and some scare tactics to make you feel like you know nothing about stock investing online, they get to the money question. If you decide in the next 30 minutes the price is $1995 for the weekend seminar. If you decide later, the price is $2995 . Quite a squeeze for a decision involving a large sum of money! I guess if for 2k you got everything you needed I would consider getting involved in the stock trading course of Investools. The scam comes in that they don't tell you about the "advanced" online stock trading and the $2500 stock trading software that you need to buy to really make the Investools course worthwhile. For $10-15,000 I can purchase a lot of stock market training on my own.

So is Investools a scam? You decide.

Investools traders average 30-40 trades per month

Did you know that part of the Investools scam is to make you think that their "system" is easy-peasy. Just turn your computer on and the software (which you must pay several thousand in addition) does the rest. In perusing the shareholders lawsuit against Investools, the average trader involved with them makes 30-40 trades a month. There is no way you can make that many trades every month without it taking a substantial amount of your time and energy. I make less trades than that myself, and I consider myself an active investor.

My Favorite CNBC Reporters

When I watch CNBC I seldom listen to most of what the anchors say. These four reporters pictured I find to be very knowledegable about the markets. Erin burnett is not only easy on the eyes, but very insightful. Rick Santelli is an ex-trader with great feel for the bond market. Bob Pasani is the only floor reporter at the NYSE that the traders seem to talk to. And Sue Herera has been around for as long as I can remember. Don't let her easygoing demeaner fool you, she is very sharp about the markets.

My Favorite Investing Authors

I said in my last post that I would look at the various authors that I have used to educate myself about the stock market. I believe that there are many smart people out there with a lot to teach all of us about investing. Even today, If I were to pickup a beginners book on investing, I a sure I would learn something from it. Investools charges thousand of dollars for info that could be found either at you library (for beginning level) or by going to amazon.com. Some the authors I recommend searching for are:

Darlene Nelson ( excellent for QQQQ tutorials)
John Murphy ( technical trading expert)
John Bollinger ( he of the Bollinger Bands fame)
Martin Pring ( wrote the first book I bought on options long ago)
Oliver Velez (Core trading and Swing trading)

Go to amazon and check out what they have to offer!

Have a great day!