Review of IBD’s Leaderboard
IBD Leaderboard Review
In this review I examine IBD’s Leaderboard subscription service. A subscription service where IBD does the time consuming research for you, then presents you with a list of stocks near their buy points.
While subscribing to proven services such as Leaderboard is the fastest way for anyone to make gains in the market when they first start, in this IBD Leaderboard review I’ll go over the four things you need to look for when evaluating any trading service such as Leaderboard.
In addition, I’ll compare Leaderboard to my own Index Trading Strategy (which also has the research done for you and tells you want to buy and sell). Information is power. Knowing what else is out there, is always helpful when making a decision.
Before I begin my IBD Leaderboard review, let me state that when I first started investing, I subscribed to the IBD Newspaper and read many of William O’Neil’s books. Great education. However, this is not about those products but about their Leaderboard subscription service.
4 Things To Look For
There are 4 things I look for when reviewing a service like IBD Leaderboard.
- What are my expected returns?
- How much will it cost me to get those returns?
- Can I do the required trades on my schedule?
- Do they have a money-back guarantee period to allow you to verify returns and to see if it is for me?
What Are My Expected Returns?
I recently visited their site on September 8, 2018. There I found the following returns which they claim were recently featured:
For Amazon to have gone up 94% they would have to have given this stock out a year ago. I find that misleading to say these returns are from recent picks.
If one scrolls down a little further, you find this graph:
That return is fantastic. 5x the S&P! However, since their service is ONLY about alerting you to stocks ready to breakout, I wonder which stocks these returns are from? Is it all the stocks that brokeout since the beginning of the year? If so, do you have enough funds to buy and hold all the breakouts (in six months you would have had dozens)?
Now if we compare the return of Leaderboard to my own Index Trading Strategy we see something quite different:
Now Leaderboard’s 15% return does not look as good. We all have only a certain amount of time before we retire (or pass away). The bigger the gains, the faster our money grows and the better chance we have of hitting our financial goals.
BTW, the Index Trading System had 9 trades over the six months. You hold only one index ETF at a time. You close it and buy another about every 2-3 weeks. Simple.
What Are My Costs?
Leaderboard costs $69 month. For Leaderboard’s 15% return over the last 6 months, that would have cost you 6 x $69 = $414.
With a $10,000 portfolio, you gain $1,500 but have to pay 1/3 of it to IBD. OUCH! You’ll need at least a $30,000 portfolio to start with to alleviate some of the pain of their fee.
Compare this with my Index Trading System‘s $20 per month subscription fee. This means a $10,000 portfolio gains $7,200 but only pays a subscription fee of $120 (6 months x $20). Painless. You could even start with a smaller portfolio and still not feel the pain.
Can I Do This?
With Leaderboard, you get a list of stocks near buy points. It will tell you their buy and sell points. What they DON’T give you is a trading system.
For example, you have $150,000 to invest. 5 stocks hit their buy price. Do you buy all 5 and split your money evenly? Pick just one and put it all on it? If so, which one?
If you buy all 5 and 5 more hit their buy price tomorrow, now what do you do?
How do you know when they will hit their buy price? Do you sit at computer and watch all day?
My Index Trading System comes with a trading strategy. There is only one ETF to buy. I email or text you what to buy after the market closes. You set an order to buy the ETF at it’s buy price. That’s it.
Check on your order shortly before the market close. If it did not execute, make the buy before the market closes. Then you wait 2-3 weeks for the sell alert and repeat. If you can do this, you can follow the Index Trading System.
Is There A Money Back Guarantee?
Leaderboard has no money-back guarantee but they do give you a 14 day free trial. That’s not enough time to see if it works, but should be enough time to verify returns and to see if it’s something you can follow.
Index Trading System offers a 30-Day Money-back Guarantee which means you pay up front, but have 30 days to verify returns and see if it’s something you can do. Cancel within 30 days and get full refund of your subscription fee.
To wrap up this IBD Leaderboard Review I’ve put together a chart comparing Leaderboard against ITS. Hopefully it will help you make a decision, or subscribe to both for a few months and see which is better for you.
Now that you have the facts, I’m sure you can now make a more informed decision as to which investment vehicle is best for you.
There is no guarantee that my trading system, or Leaderboard will do similar gains in the future.
To your success.