Black Box Stocks Review – Scam Or Legit Tool?

Black Box Stocks is a resource for traders and they claim they can help you find "explosive opportunities in the market in real time."

Is this true or just one big scam?

We'll get to the bottom of this question in this review.

Below you'll find everything you need to know about this product including background information, price to join and any issues that I find.

You'll know if Black Box Stocks is worth it by the time you're done reading.

Let's get started!

You Shouldn't Try Day Trading

Black Box Stocks is for day traders and option traders - but the main group it serves is day traders.

If you're new to investing and thinking about getting into day trading I have one thing to say to you..

DON'T!!

Day trading is the single worst way to invest money and it's not even close.

Don't believe me? Hopefully these next  points are enough to keep you away from day trading.

Only 1% Of Day Traders Succeed

If you were to Google day trading success rate you'd see most people say anywhere from 5% to 10%.

This is extremely low but it's not accurate.

The real success rate is 1% or so and this has been confirmed by MASSIVE studies that's looked at hundreds of thousands of day traders.

For example, this study followed 300,000 day traders over the course of 15 years and found less than 1% could reliably make any money with day trading:

There's even more studies that prove this too.

One study followed Brazilian day traders for multiple years and found only 1.1% made more than Brazilian minimum wage.

It doesn't matter where you are in the world as these two studies have proven.

Day trading just doesn't work and there's a lot of reasons for that.

Higher Than Normal Fees

Another reason day trading is so hard is the fees make it virtually impossible to succeed.

In the end you can't guess where a stock's price will be in a few hours, which is all day trading is.

It's hard enough guessing where a stock will be in three years but a couple hours? Basically impossible.

So day trading is essentially flipping a coin.

If you flipped a coin and guessed the side over a long period of time you'd expect to be right 50% of the time and wrong 50% of the time.

The problem with day trading is the fees make it cost money to flip the coin.

This all but guarantees you will lose money in the long run.

Each trade you execute can cost up to $100. So that's $100 you're starting down.

After that you have to pay taxes on your gains.

Day trading taxes are higher than long term investment taxes, though.

The tax rate is 28% for day trading and 15% for long term investments.

So you're basically paying double in taxes!

Long Hours And Early Mornings

Another major disadvantage about day trading is just how effort it takes.

It's basically a full time job which makes losing money even worst.

Day trading requires hours of prep work in the morning and a couple of hours trading when the market opens at 9:30 AM.

This means you're up when the sun is coming up.

If you're in a place like California or on the West Coast you'll need to wake up at 5 AM most likely and maybe earlier.

Typically you get the afternoons off but then have to trade for a couple hours before the market closes at 4 PM.

After that you review your trades and then your day is done.

That's A LOT of work for a 1% chance of making minimum wage.

Long term investing can be done in 15 minutes a month and the odds of success are WAY higher.

Technical Analysis Won't Save You

So this is where Black Box Stocks come in.

Black Box Stocks offers many tools that supposedly will help you become a better trader.

When challenging a day trader about the success you're likely to hear it's because people aren't good enough at technical analysis or risk management.

Technical analysis is analysis of a stocks price movement.

Day traders believe stocks follow common paths and you can guess a stocks future price based on the price movement.

It's all basically fake, though.

Don't take my word for it either.. here's what Warren Buffett has to say about day trading:

Basically Warren Buffet is claiming technical analysis can't tell you to buy or sell at any point.

Your confirmation bias will end up making the decision.

The truth is you'll never be able to reliably predict where a stock will be in a few hours.

There's just too many factors involved in the price movement of a stock.

A lot of the price movements don't even make sense.

It Doesn't Matter How Smart You Are

The last point I want to make is this - you won't be able to out smart the odds here.

Brilliant people have tried day trading and almost all have failed.

An example of this is Eric Ferguson who runs Mindful Trader.

Ferguson is smarter than me and I'm guessing smarter than you.

He graduated high school at the top of his class, got a perfect score on the math section for the SAT's and graduated from Stanford with an economics degree.

So yeah.. he's brilliant.

He spent years creating his day trading strategy based on back testing and technical analysis.

Eric has been trading for two years now and you know what is results are?

He's down 17%.

It doesn't matter how smart you are or what tools you have.

The odds are just too big to over come with day trading.

So please.. if you haven't started day trading or you're a struggling day trading switch over to long term investing.

You can actually make money buying stocks and holding them for a couple years.

Recommended: The Best Place To Get Stock Picks

What Is Black Box Stocks Offering?

Black Box Stocks offers a bunch of tools for traders and was created by "high frequency traders (day traders)."

Here's a brief overview of everything they offer:

Pre Market Scanner

Before the market opens Black Box Stocks is scanning stocks to see which have "break out potential."

The goal is to find stocks that have big volatility.

The Pre Market Scanner displays the top 40 stocks with the larges price increases and decreases prior to the market opening.

This can help you figure out which stocks have the potential to move once the market opens.

All information is tracked from NASDAQ, NYSE, AMEX and other enhances.

Post Market Scanner

The Post Market Scanner reveals the top 40 stocks with the biggest price changes after the market closes.

Again, this information is taken from the NASDAQ, NYSE, AMEX and other exchanges.

Stocktwits Feed

Stocktwits is the largest community of investors and traders.

It works like Twitter but it's where investors share their thoughts and ideas about the market.

You can integrate your Stocktwits into Black Box Stocks so you can follow your favorite investors through out the day.

Volatility Indicator

Next, Black Box Stocks offers what they call a Volatility Indicator, which is pictured above.

You punch in a stock and this gauge tells you how much voliatility is expected through out the day.

You're looking for more volatility because that means more potential gains.

Market Movers

Market Movers is a real time scanner that scans the market through out the day.

It's breaks down the top 100 stocks in terms of price movement and divides them by largest increases and decreases.

Price Quotes

Black Box Stocks also gives you real time price quotes and information about any stocks.

This company is based in Dallas but its servers are in New York.

This ensures all information is as updated as possible and there's no latency between the stock information and what's being showed at Black Box Stocks.

Charts

You membership also gives you real time charts and technical analysis.

This tracks the price and shows any movement of the stock through out the day.

News Feed

The News Feed is similar to the Stocktwit section.

You can choose to instead have news from different outlets show up so you can stay on top of the markets during the day.

Members Chat Room

This is another aspect that goes where the Stockwit or news fee section is.

You can put the member chat there instead.

This allows you to get insights from Black Box Stocks members and chat with people about the markets.

Alerts

Black Box Stocks has an algorithmic driven alert system that tips of members.

This algorithm looks at many different aspects of a stock and lets you know which has the best potential for massive price movements. 

You can also look up all the alerts about individual stocks.

Volume Scanner

Black Box Stocks looks at the volume stocks are traded at as well.

You get a list of the top 20 stocks being traded by volume based on the stocks 10 day average volume.

Option Tools

Lastly, there's a handful of tools that are meant to help option traders.

This includes:

• Option Alerts
• Options Flow 
• Options Heat Map 
• Options News

Black Box Stocks FAQ's

Still have some questions about this service?

Here's answers to any remaining questions you might have.

1) Who Is Black Box Stocks For?

Black Box Stocks is mainly for day traders.

It has some tools for option traders but most of the service is geared towards high frequency traders.

The idea behind Black Box Stocks is pattern traders will get all the information about a stock to be able to predict price movements for the day.

You'll see how much a stock has been traded, it's changes in price, different volatility ratings and more.

This will supposedly help you with your trades.

However, there's really nothing that can help a day trader.

Even with all this information you'll still most likely not make money or predict where a stock is going.

2) How Much Does Black Box Stocks Cost?

You can either pay monthly or yearly.

To pay monthly is $99.97 and I believe you get a 20% discount for the first month.

If you want to pay yearly it's $959.. so you end up saving around $240 compared to paying monthly.

3) Is There A Refund Policy?

Black Box Stocks claims they determine eligibility for a refund on a "case by case" basis.

This is a pretty weird refund policy and I haven't really seen a refund policy worded this way before.

Usually a product will tell their customers when you can get a refund, how and what you get back.

This leaves a lot of room for interpretation which I don't like.

Additionally, there's no refunds on special promotions.

4) Is Black Box Stocks Legit?

It's legit in the sense that it works the way it says it works.

This is a well made product and is going to function.

You'll get all the data they promise to give you and everything will work smoothly most of the time.

Does this mean you'll make money with their data?

Probably not.

Recommended: The Best Place To Get Stock Picks

Black Box Stocks Conclusion

So that's the end of my review of Black Box Stocks.

I've done day trading reviews in the past and people get very hyper emotional about them.

Some will leave me an insult and tell me how wrong I am.

I usually ask how much they've made since day trading but then they go silent.

I've had hundreds of interactions like this.

The truth is no one is really making money day trading.

This includes day traders with the best and most fancy tools imaginable.

It simply doesn't matter.

So do I like the way Black Box Stocks functions?

Sure it has cool graphs and a lot of data - plus it works well and is highly functioning.

But it's not going to help you make money because you're not going to succeed with day trading.

I'm not going to recommend a tool that's ultimately going to lose you money.

I'd stay away from Black Box Stocks and more importantly I'd stay away from day trading.

Here's A Better Opportunity

Only suckers try day trading.

The promise of fast profits and working for yourself is appealing but fraudulent.

Long term investing will always be the best option.

There's many services that will give you long term stock picks.

To see my favorite (which is very affordable), click below: