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.
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 August 3, 2019. There I found the following returns featured:
In the small print you can see they advertise a YTD gain of 17.9% vs 9.8% for the S&P. That return is fantastic. 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 broke out since the beginning of the year? If so, do you have enough funds to buy and hold all the breakouts?
Now if we compare the return of Leaderboard to my own Index Trading System we see something quite different:
Now Leaderboard’s 17.9% 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.
What Are My Costs?
Leaderboard costs $69 month. For Leaderboard’s 17.9% return, that would have cost you 5 x $69 = $345.
With a $10,000 portfolio, you gain $1,790 but have to pay about 20% of it to IBD. OUCH! You’ll need at least a $100,000 portfolio to get your subscription cost down to around 2% of your portfolio. A mutual fund that generates 17.9% a year will charge you only 1% to 1.5% of your portfolio. Starting with less than $100,000 means you’ll need to pay high fees for an average return.
Compare this with my Index Trading System‘s $20 per month subscription fee. This means a $10,000 portfolio gained $3,150 at a cost of $100 is only a 3% fee. You can start with a lot less AND as you see from the results above, make BIGGER gains for your subscription fee.
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 (and you don’t have to ask – comes automatically).
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.