I first stumbled across this service through a video presentation on the Banyan Hill website, where Ted Bauman was talking about a “unique breakthrough with the ability to deliver, on average one winning trade per week” that he calls Profit Switch.
This is the first time I’d heard of this, but I am familiar with Ted Bauman from another service he runs called The Bauman Letter. And Ted says his Profit Switch service (formally known as Alpha Stock Alert) is designed to help you make double or even triple-digit gains.
Anyway, I decided to take a closer look at the service to see what it was all about, how it works and whether or not it’s worth the $1,497 price tag. And in this review, I’ll show you what I found.
What Is Profit Switch?
Profit Switch is a stock alert service headed up by Ted Bauman of Banyan Hill Publishing. For $1,497, subscribers receive one new trade recommendation each week, or 60 recommendations over 12 months, along with detailed analysis on each stock pick.
According to the Banyan Hill website, the main goal of the service is to “help everyone, regardless of wealth, personal background or financial experience, become financially secure.”
And to do that, the service aims to provide “alpha gains that exceed those of the rest of the market” using Ted’s “rigorous three-point strategy.”
What exactly does his strategy involve?
Ted says he first looks at the economic sector and whether or not it’s trending upwards relative to the overall market. A sector is basically just a group of related businesses in the economy, and since Ted Bauman is a former economist, identifying and analyzing these sectors is his speciality.
Second, he says he looks at the individual companies operating within that sector, to find those that are outperforming.
And third, with the help of Banyan Hill’s technical trading expert Clint Lee, Ted aims to help subscribers enter and exit trades at the right time.
So there’s an element of “timing the market” with this particular service, rather than just buying and holding for years on end as a more traditional value investor does.
It’s almost like a hybrid approach between long term stock investing, and short term trading.
It kind of reminds me of another service I looked into recently called Sector Focus by Chris Rowe of True Market Insiders, but substantially higher priced.
Ted does say there’s the potential for double or even triple-digit gains though.
So even though the service does cost almost $1,500 per year, it could still be worth joining given Ted’s experience and track record when it comes to choosing winning stocks.
In any case, the service aims to provide you with one trade idea every week on average, and these are straight stock picks, not leveraged options plays. So it’s arguably not as “safe” as a longer term approach, but it also doesn’t carry the same risks as trading options does.
Who Is Ted Bauman?
Ted Bauman is the man behind the Profit Switch service, along with other services published by Banyan Hill Publishing such as The Bauman Letter and Bauman Daily, a free daily email subscription with useful tips and insights on stock investing.
Aside from his work with Banyan Hill, Ted is best known as a renowned former economist, investor and author of best selling books such as Endless Income.
According to the Banyan Hill website, Ted graduated the University of Cape Town with postgraduate degrees in economics, economic history and politics.
He’s also travelled to over 80 countries, researched and written extensively about finance and housing for the United Nations, World Bank and the South African government among others, and worked as a fund manager for low-cost housing projects.
All of this makes him well-suited to provide the kinds of insights he shares in Profit Switch, which takes into account the overall global macro landscape, how each sector and sub-sector is trending, and which companies he believes are poised for growth.
He’s not very well-known for technical analysis, which is part of how Profit Switch works. But this is where his colleague, Clint Lee, steps in. Clint is an expert technical analyst who works closely with Ted to provide subscribers with weekly trade ideas.
What Do You Get By Joining Profit Switch?
The main thing you get when you join Profit Switch is the trade alerts, which aim to provide you with a “winning trade every single week” on average.
Of course, there are no guarantees that the trades will be “winners.”
But that’s the goal.
And unlike some services out there, you don’t just get a bunch of trade alerts.
On top of getting the name, ticker and “buy-up-to point” of the stock Ted’s recommending, subscribers also receive detailed analysis on the company and why he’s recommending it.
You also get other resources such as guides, trading manuals, a model portfolio and weekly webinars, which are aimed at helping you get the most out of Ted Bauman’s predictions.
How much does it cost?
The cost of joining Profit Switch is $1,497 and according to the website, this automatically renews every 12 months.
Is there any kind of guarantee?
Like most services I review, there is a “kind of” guarantee in that Ted Bauman promises subscribers will receive “the opportunity to make 60 winning trades” during the course of your 12 month membership. However, in no way does that mean you’re guaranteed to make money.
This simply means you’ll get 60 trade recommendations over 12 months, or you’ll get a second year of access to the service at no extra cost.
So it’s important to understand that there are no guarantees you will make money with Profit Switch. In fact, given the inherent risk associated with trading and investing, it’s even possible you could end up losing money.
Not just with the subscription fee, but with any money you decide to invest.
That doesn’t make Profit Switch a scam or anything, but I do think it’s important to point this out. Because it’s easy to get swept up in the excitement and forget that there are risks involved.
Bottom Line – Should You Join Profit Switch?
On one hand, Profit Switch is a legitimate service that aims to help subscribers make consistent weekly gains using Ted Bauman’s unique three-part approach. Whereby he analyzes the market sectors to find what’s trending, looks for individual companies within each sector that are outperforming, and uses technical analysis to pinpoint the best potential entry points.
Given Ted’s track record, that’s quite an exciting prospect.
On the other hand, at almost $1,500 per year, not everyone is going to be able to afford to join this service. And it does involve shorter term trading, which can be very risky.
So it’s not for everyone.
Either way, I personally wouldn’t join Profit Switch expecting to get rich quickly, or that you’ll get a highly profitable (winning) trade every single week.
Because, while I guess that’s possible, history shows that it’s just as easy to lose money speculating on stocks as it is to make it. Especially over short periods of time.
In any case, hopefully this review helps you make a more informed choice either way, and if you have any thoughts you’d like to add, feel free to leave a comment below.