Investors Underground Review
Ease of Use (Website)
Quality of Alerts
Quality of Education
Quality of Support
Investors Underground is one of the biggest trading chat rooms on the web. The service has been around since 2008 and his home to many respected day traders. IU is run by Nathan Michaud who provides daily watch lists, trading video lessons, trade alerts, and more.
About Investors Underground
Investors Underground is one of the most well-known chat rooms on the internet. The service has been around since 2008 and the IU chat room may be one of the biggest on the web. You will find well-known traders like @modern_rock, Nathan Michaud, Tim Grittani, Eric Wood, and many more in the chat room. Investors Underground was available on the profit.ly platform for some time before announcing their departure in 2015.
Investors Underground is a day trading community, chat room, and education service. The company offers two trading courses to get new traders acclimated to the market. Textbook Trading is a beginners day trading course and Tandem Trader offers advanced trading strategies as well as real-time trade analyses.
The Investors Underground service is owned and operated by Nathan Michaud (also known as @investorslive).
Who is Nathan Michaud?
Nathan Michaud is a well-known trader in the world of online trading. Most traders better recognize Nathan by his Twitter handle, @InvestorsLive.
Nathan Michaud has been day trading since 2003 and went full-time in 2007 after graduating college with a degree in finance. In 2004, he founded a website called InvestorsLive.com, which would later evolve into Investors Underground.
Nathan is known for having a good feel for the markets and you can see some of his calls on Twitter. He will trade a variety of different kinds of stocks and he will play both sides of the market (long and short).
I initially became familiar with Nathan’s trading by following him on Twitter. I would use his tweets as ideas for new trades. Eventually, I decided to sign up for the service and I’m very glad I did.
Investors Underground Trading Style
Investors Underground has a few prominent moderators, all of which have slightly different trading styles. The service offers a Momentum Trading chat room, a swing trading chat room, and an OTC trading chat room. That said, the majority of trading is focused on momentum plays. Momentum trading consists of finding stocks with above average trading volume and volatility and this is exactly what the traders at IU are doing. This shouldn’t be confused with scalping as most trades are held for a few hours.
The majority of the trading done at Investors Underground is based off of technical analysis. Nathan and the other head traders put a strong focus on looking for setups with low risk and high reward potential. Some of these setups include ABCD charts (similar to an ascending triangle), short selling parabolic moves, trading red/green reversals, and more. The main indicator most traders use in the room is VWAP, a volume-weighted moving average that helps smooth price action.
Investors Underground is one of the more diverse trading services I’ve tried so far. There is a lot more activity when compared to trading services like Timothy Sykes and Fous Alerts. Nathan and the other traders are trading many different stocks and setups each day. They will trade $1 stocks and they will trade $100 stocks. They will place long trades and short trades. At first, it can be difficult to keep up with this fast-paced trading style, but once you get the hang of it, you learn A LOT.
You can better understand the trading style by checking out this clip from Tandem Trader:
Investors Underground Chat Rooms
Investors Underground has three different trading chat rooms: Momentum, Swing, and OTC. The majority of the action is in the momentum chat room, but the other chat rooms are helpful as well (especially if you have a different trading style)
Momentum Chat Room
Day 1 in the Investors Underground momentum trading chat room was a new experience for me. By the time I joined Investors Underground, I had already tried a few different chat rooms. Here’s how the Momentum Chat Room differed:
- No Off Topic Chatter is Allowed – In many of the other chat rooms I was in, there was room for conversation. The IU chat room is all about business. Every single message posted during market hours needs to add value or you will get muted. While this can seem harsh at first, you understand the value of it once you’ve been a member for a month.
- More Key Traders/Moderators – Many trading services are focused around a single trader. Investors Underground has many more experienced traders who share alerts. Moderators posts are shown in a different font so they are easy to follow. Some prominent members include InvestorsLive, AT09, OddStockTrader, TexMex, Elkwood, OzarkTrades, Tim Grittani, and more. These guys all have different trading style so there is a lot to learn.
- Faster Paced Lingo and No “Follow” Alerts – Some of the other chat rooms I was in before IU offered trading alerts that were very easy to follow (i.e. “In 10,000 shares of $XYZ at $6.50). Investors Underground is more about trade ideas and commentary than it is alerts. They don’t want traders simply copying alerts, which is probably for the better due to the size of the chat room. Instead, you will get alerts like “Taking a starter in stock $XYZ” or “$XYZ hitting nHOD.” There is a lot of lingo and jargon you need to familiarize yourself with, but they have a getting started page to help.
Swing Trading Chat Room
The swing trading chat room is run by Michele Koenig, who also runs her own service, Tradeonthefly. The swing trading chat room is also focused on technical trades but they will often hold stocks for a longer period of time. Michele (@offshorehunters) is constantly sharing annotated charts and trade ideas in the chat room. This room is a great place to learn more about technical analysis. It is also beneficial to those who cannot watch the market all day.
OTC Trading Chat Room
The OTC trading chat room activity varies relative to the OTC market activity. When there is very little going on in OTC land, the chat room is pretty slow. When the OTC market picks up, I will always open up the chat window. There are a few great traders in there that provide great insights on the wild OTC markets. Some of the key moderators include OddStockTrader, bbstock, and oilgusher. These guys all have great commentary that helps you stay safe in the OTC markets and learn more about how to trade penny stocks.
Investors Underground Trade Recap Video Lessons
As I mentioned above, keeping up with the IU trading style can be tough during your first few days. Your best bet is to focus on some of the video lessons so you can better understand the rationale behind the trade alerts. There is a library of hundreds of video lessons and Nathan Michaud puts out a few new trade recaps every week. I still watch the video lessons on a regular basis and learn something new. Nate goes over the trades and explains why he traded the way he did.
Here is a Free Video Lesson Example
Investors Underground Webinars
Investors Underground hosts a few members only webinars every month. Members can send in questions and get answers during the webinar. The webinars also go over recent trading activity in a bit more depth than the video lessons.
Historically, Nathan was the only person who did webinars, but recently more moderators have started doing them. Webinars are hosted by Nathan, AT09, OddStockTrader, and Emil. Each of these guys has a different trading style so it’s helpful to watch a few of each.
Here is a Free Webinar Example
Mentorship at Investors Underground
Investors Underground has some of the most trading talent when compared to other services. This isn’t a “guru” service where everyone follows the leader. Education and self sufficiency are promoted.
There’s a lot of people to learn from and lots of opportunities for mentorship. At Investors Underground, mentorship consists of personalized support. If you have questions during the day, you can send a private message to Nate or one of the other moderators in the chat room. I was surprised at how helpful Nate was when I had specific questions about my trades.
There are two things to keep in mind before sending any message. First, the moderators are traders and they are actually trading. It may take them some time to get back to you. Second, make sure you ask the right questions. You’ll get the best answers if your questions are well thought out. Broad questions (i.e. is this stock a buy?) and questions that can be Googled (i.e. what is VWAP?) are discouraged. Like any good mentorship, it’s only effective if the mentee is willing to put in the work.
If you’re looking for further support, there’s an entire chat room called “The Trader’s Lounge” for off-topic chatter and support. You can use this room to ask questions or discuss trade ideas during the trading day. Sometimes Nate will go live (mic and screenshare) during the day to answer questions.
If you have questions outside of market hours, you can get them answered during members webinars. There are a few webinars each month for continued learning and personalized attention.
Who is Investors Underground Best For?
Investors Underground is best for traders who already have a decent understanding of how the market works. If you just started to learn day trading yesterday, you will get confused in the chat room (as you would with most chat rooms). Focus on educating yourself for a month before joining so you can make the most of the service. The IU free trading course is a good starting point.
Investors Underground provides the most value to traders who are able to watch the markets during market hours. There are a ton of valuable alerts and you learn something new every day. That said, you have to be dedicated to learning. This is NOT the type of service where you can try to emulate the alerts. If you are looking to trade actively, IU is the best chat room you can find.
Is the Service a Good Value?
Investors Underground offers subscriptions starting at $197/month for the Standard subscription and $297/month for the Elite subscription, which includes video lessons. This is a bit pricier than some of the options out there, but I found it to be well worth it. If you are interested in actively trading, this service provides the most value for your dollar. You get access to a lot of great traders, tons of actionable alerts, video lessons, and much more.
Investors Underground is one of the best trading communities on the web. The service provides a lot of value, especially for active traders.
Two pro tips to get the most value:
- Choose the Elite option because the video lessons are one of the most valuable parts of the service. You get new recaps every week and you also have access to hundreds of other video lessons, which is similar to buying a trading course.
- Don’t buy the monthly subscription. Find a quarterly deal or a bundle. These guys are always running deals so just look around a bit. When I first signed up, I got the Elite quarterly subscription for $547, which is a way better deal than the monthly at $297.
Some Twitter Buzz
— The Two Piggies (@piggiestrader) March 10, 2017
Tandem trader – Amazing! well structured, brilliant guide, highly recommend. @InvestorsLive
— Austin Sanders (@epiphanytwisted) February 25, 2017
— Manish Oli (@oli_10xtrader) February 8, 2017