In a nutshell: Stock Market Guides offers stock and option picks that cater to both swing traders and long-term investors. Their scanner looks for popular stock chart patterns and alerts you if it finds ones that have a track record of success.
Where Stock Market Guides differs from any other business we’ve seen in the field is with its proprietary scanner, which shows the historical track record of any trade setup it alerts. Read our Stock Market Guides review to learn why we think these guys offer one of the best resources available for stock and option investors.
Stock Market Guides offers a service catering to investors seeking data-driven trade alerts supported by historical performance metrics.
Pros & Cons
No Live Trading Companion Offered
Table of Contents
Full Stock Market Guides Review
Stock Market Guides shines light on the historical performance of popular trading strategies. They use a research process called backtesting to retrieve information about the track records of these trade setups.
Have you ever been part of a stock picking service and gotten a trade alert and wondered, “What are my odds of success on this trade?”
Maybe the trade was based on one of the stock’s technical indicators. Or maybe it was based on a chart pattern for the stock.
The person who gave you the trade idea is acting like it’s a great trade setup, but what does history show?
That’s something that no company in the industry squarely answered for the general public until Stock Market Guides showed up.
The founders of the company felt that, all too often, they’d see services that were promoting stock or option picks that simply had no verifiable track record of success.
This led them to create Stock Market Guides, which features a proprietary scanner that identifies the historical track record of popular trade setups. It’s powered by their own in-house backtesting engine.
The power of their stock and option trade alerts is that their scanner sifts through the huge volume of trade setups occurring across the stock market and pinpoints the handful that have a very strong track record of success.
This video shares examples that demonstrate the power of their trade alerts:
What We Like About Stock Market Guides
Stock Market Guides is one of our favorite companies in the industry. There are a number of reasons we like their service:
Trade Alerts: The company sends real-time trade alerts to subscribers, specifying the trade setup’s historical performance, allowing subscribers to make informed trading decisions. Alerts can be sent by email or text.
Powerful Picks: These picks pack a punch. They only publish stock and option picks that have an annualized return in backtests of more than five times that of the S&P 500. Their scanner sifts through the chaos of the market and finds those gleaming trade opportunities that have a track record of profitability.
Valuable Information: With each trade setup, they show its historical track record of success. They show how many times that setup has occurred in the past for the same stock, and how the stock performed each time. Simply put, no other company we know of makes information like this easily available to the general public.
Caters to Busy People: The text alerts they offer cater to people who are on the go. They also have some services that send trade alerts before the market opens. This is helpful for people who are unavailable during the day due to work.
Flexibility in Trade Lengths: They have alerts for trade setups that last anywhere from a few days all the way up to a year, catering to swing traders and longer-term investors.
Newsletter: They send out an email newsletter on a regular basis for each of their services. It offers market commentary and discusses trade alerts. It’s a nice complement to the trade alerts that come from their automated scanner.
Customer Support: We’ve seen customer reviews that say they emailed Stock Market Guides to ask a question and in reply got a personalized video response. Wow! These guys seem to really go the extra mile to ensure you understand how to use their service.
Educational Resources: They provide free guides for beginners to learn about stock and option trading. It’s essentially like having access to a free stock and options trading course, whether you sign up for their paid service or not. This includes an extensive library of video tutorials on their Youtube channel.
Transparency: They avoid hype and focus on providing actionable information. They make it clear what they offer and what the limitations of the service are.
No Upselling: You won’t get any upsell emails from these guys. It’s rare in this industry and quite refreshing. With many other stock advisory services, once you sign up, you’ve entered a vortex of hype of promotion that never seems to end. That’s not the case with these guys.
Why Stock Market Guides Isn’t Perfect
We’re big fans of these guys, so we don’t have a lot to say about their deficiencies. That said, no service is perfect for everyone. There are a couple of things about their service that are worth mentioning:
No Personal Trading Companion
You don’t get the personal touch that some other trade alert services offer, since Stock Market Guides feeds you trade alerts from their automated scanner. That means that if you sign up for this service, you aren’t following along with someone else who is also making the same trades as you.
Some customers will want to know that there is another person with skin in the game for the same trade, and you won’t get that with this service.
For some people, though, that might be a good thing because it also means you don’t get the hype and exaggeration that many individual stock pickers in the industry seem to spout out. Stock Market Guides does not have a vested interest in any of the positions be alerted, so there will be no one trying to coerce you to buy a position in the same stock.
Alerts Rely Solely on Historical Data
The entire premise of this business is that it digs through all the historical price activity of each stock to quantify the track record of each trade setup it finds.
In general, we love the idea of using history to guide our trading decisions. It’s so much better than making blind trades! That’s one of the reasons we are so fond of this company and consider it a trailblazer in the industry.
That said, historical performance doesn’t guarantee future results, and in some cases there may be other factors worth considering when deciding whether to buy a stock or option.
One good thing, though, is that each of their trade alerts gives you access to a web page that shares analyst ratings, recent news, and other fundamental metrics for that company. So that extra information is at your disposal if you want to do any other analysis before pulling the trigger on a trade.
Information Shown in Stock Market Guides Trade Alerts
Stock Market Guides trade alerts take the guess work out of trading decisions.
For stock alerts, they show you the exact stock to buy and how long to hold the position. They specify a general amount of time, like 1 week, but you can mouse over it to see the exact time the trade will end.
For option alerts, it’s the same, except they indicate the exact call option to purchase. This includes the strike price and expiration date. You’ll never be left wondering exactly which option to buy.
Here is an example of one of their trade alerts:
Their trade alerts do not indicate a profit target or stop loss, and that’s because their backtesting research process did not use them. In other words, those historical performance results you see in the alert were based on holding the position without using a profit target or stop loss. That means if you want to follow in the footsteps of the exact approach used to generate those historical performance results, then you wouldn’t set up a profit target or stop loss.
That doesn’t mean, though, that you shouldn’t use them necessarily. Each investor has different preferences, and you might prefer to use a stop loss or profit target. That’s completely okay. Stock Market Guides realizes this and makes a profit and stop calculator available for each trade alert. It also shares ideas for how to determine effective profit and stop levels according to their research.
Customizing Stock Market Guides Trade Alerts
Stock Market Guides allows the user a lot of control in determining which trading style to cater to.
Users can choose their preferred time frame for trade durations. For example, if you’re a swing trader who only likes to hold trades for a week, then you can indicate that in your settings. Then you’ll only get alerts for trade setups that are designed to be held for a week.
The different choices they offer for trade durations are 3 days, 1 week, 2 weeks, 1 month, 3 months, and 1 year.
You can also adjust the filters to dictate the stock or option price range featured in your alerts. If you only like to trade stocks that have a share price below $50, for example, you can configure that.
This video shows how you can adjust the settings of your trade alert filters:
Stock Market Guides Trading Strategies
The trading strategies featured in the services at Stock Market Guides are based primarily on stock chart price patterns as well as technical indicators for stocks.
We saw trade alerts for strategies that included indicators like RSI and Keltner Channels. We also saw strategies for chart patterns like pullbacks and support levels.
For each trade alert, they list the trading strategy, which is linked to a page where you can watch a video that teaches you more about the strategy setup.
They say they are regularly trying to find new strategies that can be incorporated into the service.
Returns of Stock Market Guides Trade Alerts
When you get a trade alert from Stock Market Guides, you’ll see how the trade setup performed historically for that stock.
Each trade alert shows different historical performance results because each one has a different track record. For example, one of their pullback trading strategies might show an annualized return of 65% for Apple, whereas the same strategy might show 84% for Amazon. That’s because Amazon has performed differently historically with that strategy than Apple.
Stock Market Guides took all the trade alerts featured in its service, and then took the average annualized return of all those alerts. These were the results for their different services:
Pre-Market Stock Picks: 72%
Market Hours Stock Picks: 89%
Pre-Market Option Picks: 136%
Market Hours Option Picks: 197%
Clearly, these trade setups have powerful historical returns.
This profit potential does not come without risk, though. Stock Market Guides is quick to point out that losses are unavoidable, and that the bigger the position size you take, the bigger the potential drawdown if the trade doesn’t work out.
Stock Market Guides gives a good example to demonstrate how you can still go through a string of losses even if the odds are in your favor and you have an edge. Their example is based on flipping a coin, which we know has 50% odds of coming up with “heads”. If you flip the coin five times in a row, and all five times it comes up “tails”, it doesn’t mean the odds are no longer 50/50.
This shows that there can be strings of wins or losses no matter what your odds of success are. As a result, you have to take care in managing your risk, even if their trade alerts have powerful potential returns.
Stock Market Guides Pricing
Stock Market Guides offers four services, and they all have the same price: $49 per month. That keeps things simple.
We’ve never seen them run a promotion before. That goes hand-in-hand with their company persona, considering they aren’t a “salesy” type of business.
They also don’t currently offer any annual subscriptions. If you like their service, your only choice is to go with the monthly option.
You are only committed to one month at a time when you sign up for their service. You can cancel at any time to stop future charges from occurring. Canceling is really easy; it literally takes just one click to cancel using a button on the dashboard.
From our perspective, the price tag of $49 per month is a great value for what they offer. You’re not paying for some guy to run his mouth at you. You’re not paying for someone to shoot from the hip with trade ideas. You’re paying for a service that finds trade setups based on a bona fide track record of profitable historical performance.
Once you have access to this sort of historical performance information for trade setups, it will be hard to ever use another stock scanner again. That would be like going from making trades with 20/20 vision to then going back to making blind trades again.
Who Is Stock Market Guides Best for?
Stock Market Guides was carefully designed to cater to a wide audience:
Swing Traders and Longer-Term Investors: If you like holding a stock or option investment for anywhere from three days to one year, then this service might be a good fit for you.
Busy Individuals: People who are interested in trading but lack the time to do the necessary research will find Stock Market Guides extremely valuable. The service does all the hard work of finding trade opportunities that have a historical edge and sends trade alerts by email or text.
Novice Traders: They put a lot of learning materials at your disposal, and their customer service seems to really shine when it comes to helping people who are new to trading. They also send out an email newsletter to paying subscribers that talks about the state of the market and reviews trade alerts.
Investors Who Want Powerful Potential Returns: This service isn’t designed for people looking for modest returns. It’s designed for people who are trying to find ways to get a big bang for their investment dollar. It does come with risk, though, as does just about any investment with high potential rewards.
People Tired of Hype and Exaggeration: If you’re tired of all the stock services that flood you with salesy emails that try to sell, sell, sell, then you’ll probably like Stock Market Guides. We’ve never gotten a single upselling email from them. And if you decide to cancel, there is a simple button to click from the dashboard. You don’t have to deal with someone who tries to talk you out of it.
Stock Market Guides Review – Final Thoughts
Stock Market Guides offers a subscription-based service providing stock and options trade alerts rooted in extensive historical backtesting. The company focuses on a data-driven approach, using proprietary backtesting software and algorithms to identify trade setups with historical profitability.
Their scanner is groundbreaking in this industry and is the only one we know of that shows you the historical performance of popular chart-based trade setups in real time.
They emphasize transparency by providing subscribers with real-time alerts that include detailed historical performance metrics, allowing users to make informed decisions.
Moreover, the service offers educational resources, catering to beginners and experienced traders alike, aiming to empower users to understand the strategies behind their trade alerts.
One of their company mottos really rings true to us: Why make a trade in the stock market if you don’t know your probabilities?
We couldn’t agree more, and that’s why we love their service.
By signing up for an account with Stock Market Guides, you are not giving the platform access to your money or investment portfolio. No sensitive information is required to create an account, only your email address.
The core focus of Stock Market Guides is giving you information that helps you make trading decisions. Since the platform provides no access to your portfolio, Stock Market Guides is perfectly safe to use.
Stock Market Guides does not have a mobile app, but the mobile version of their website is clean and easy to use in our opinion.
Their trade alerts are sent by text or email, so they cater well to people who prefer a mobile experience.
At this time, Stock Market Guides does not cater to penny stocks. All the stocks they support start at share prices of $5 and up.
The trade alerts at Stock Market Guides were specifically designed to cater to people who can’t sit in front of a computer all day watching the stock market.
You can sign up for one of their Pre-Market services so that your trade alerts come before the normal workday starts. If you have the type of job where you have flexibility while at work, then you can sign up for one of their Market Hours services and get text alerts when trade opportunities come up.
If you want to take action on any of the trade alerts you get from Stock Market Guides, you’ll need a brokerage account that has some money in it. This is the type of account that is needed to buy stocks and options.