Investors Underground Review
Investors Underground is one of the most popular trading chat rooms and trading communities on the web. The service was initially founded by Nathan Michaud in 2008 and has since grown to become one of the most well-known communities in the trading world. Is it worth paying for Investors Underground memberships and courses? Read our review to find out.
What is Investors Underground?
Investors Underground is one of the original online trading chat rooms and educational communities. The website was initially launched in 2008 by Nathan Michaud, also known as “InvestorsLive.” When the service was launched, the main feature was a chat room where traders could share ideas throughout the day. Since then, Investors Underground has expanded its offerings and the service now acts as an “all-in-one” trading education community. Members have access to daily watch lists, video lessons, day trading courses, webinars, chat rooms, and much more.
Does the service justify the price? Keep reading our Investors Underground review to find out.
Who is Nathan Michaud?
Before you sign up for a day trading service, it’s important to consider who you are learning from. You want to learn from experienced traders with time-tested strategies and compatible teaching styles. So, who is the man behind Investors Underground, and is he worth listening to?
Investors Underground was founded by Nathan Michaud. Nathan Michaud started trading in 2003 while he was still in college pursuing a degree in finance. Day trading started out as a hobby but quickly became an obsession. Nathan founded the blog InvestorsLive.com in 2004 to start sharing his trading ideas and hold himself accountable (InvestorsLive.com eventually evolved into InvestorsUnderground.com). Nathan quickly became a well-known trader in the online trading community.
By the time Nathan graduated from college in 2007, he was a full-time trader. By 2008, he launched Investors Underground, which will be the focus of our review today.
Before we dive deeper into the review, let’s answer the most important question: is Nathan Michaud legit?
At the time of writing this review, it seems like everyone who has any success as a trader launches their own service and starts selling their secrets. There are dozens of “gurus” promoting trading systems on Facebook, Twitter, or wherever they can get an audience.
Nathan Michaud is NOT one of these fake gurus. He’s actually one of the most successful trading educators on the internet. Nathan Michaud used to be one of the educators at profit.ly until 2015 when he left the platform. Up until 2015, Nathan verified all of his trades on profit.ly where he had a proven track record that showed millions of dollars in trading profits. While Nathan no longer verifies his trades on profit.ly, it’s clear that he is a profitable trader.
Unlike other trading gurus, it’s clear that Nate is a trader first and an educator second. This isn’t to say that the educational material is lacking – it’s proof that Nathan is worth learning from. Many traders make more from selling education than they do from trading. I don’t believe that is the case with Nathan. Nathan is in the chat room bright and early every day and he is actively posting trade ideas and commentary during market hours (more on this later).
Nathan is also the founder of Traders4ACause, a trading charity that has raised over $1,000,000 for different causes.
To sum things up, Nathan Michaud is a legit trader. Now, let’s take a closer look at the Investors Underground service.
What Do Investors Underground Members Get?
Investors Underground is designed to be a “one-stop-shop” for people who are serious about learning how to day trade. The service has two key offerings: trading courses and community memberships. Let’s take a closer look.
Investors Underground DVD’s
Investors Underground has two premium trading courses that can be purchased as standalone courses or bundled with an Investors Underground membership. For the sake of this Investors Underground review, I won’t be going into too much depth on each course (as they could each warrant their own review), but I will provide a brief overview.
Textbook Trading was released in 2013. This is the first course Nathan Michaud ever released. The strategies are timeless and still effective today.
The course contains 8 hours of video content that covers strategies ranging from beginner to intermediate skill levels.
Textbook Trading is one of the most comprehensive trading courses I have ever watched. If I could go back and only watch a single course when I was starting to trade, this would be it. Textbook Trading covers:
- Trading methodology
- Trading mindset
- Trading tools (i.e. brokers and platforms)
- Actionable trading setups
Michaud does a good job of categorizing and explaining each of the different trading setups. For example, Textbook Trading introduced the “ABCD pattern” that many traders are familiar with today.
The course is well-organized and well-produced.
Tandem Trader was launched in 2015 as a follow-up to Textbook Trading. This course was co-created with Cam from Investors Underground (who many people will recognize from the trader interviews on YouTube).
Tandem Trader features over 12 hours of video content that expands on the lessons from Textbook Trading and introduces new, advanced trading concepts.
While Tandem Trader offers a lot of valuable trading lessons, the selling point of the course is the tick-by-tick commentary on live trades. When Nathan was creating Tandem Trader, he recorded his computer screens for a few months. This allowed him to capture real trades in real-time. These trades are showcased in Tandem Trader with trade commentary from Nathan Michaud and Cam.
When this course was first released, it was a game-changer. Many trading educators created courses with timeless strategies and hindsight analyses, but Nathan was the first to actually show live trades. As a student, these live trades are helpful learning tools. It’s one thing to learn about how the ABCD pattern works in theory. It’s another to see it play out in real-time.
This course is ideal for traders who have already watched (and rewatched) Textbook Trading and already have a basic understanding of trading methodology. You will get the most out of the “live trade recaps” if you actually have experience staring at stock charts and making trading decisions.
Investors Underground Membership
You are not going to watch a course and become a trading superstar overnight. Becoming a successful trader takes time – there’s no way around it. You can shorten your learning curve, but you cannot eliminate it completely.
The Investors Underground courses are there to provide your trading foundation. The membership is there to offer continued support education. Trust me, you’re going to need it.
The Investors Underground membership complements the courses nicely. As a member, you can see the lessons from the courses applied in real-time. You can see how Nathan creates his watch list, how he trades in real-time, and how he analyzes his trades in video lessons.
You also get access to lessons and trade ideas from other successful traders. While the coursework is presented by Nathan and Cam, the community is home to a broader range of skilled traders.
Let’s take a closer look at what members have access to.
Daily Watch Lists
Investors Underground members have access to daily stock watch lists from Nathan and a few of the other key moderators.
These watch lists are designed specifically for active traders (with the occasional swing trades). Don’t expect to find a watch list that says “BUY STOCK XYZ TOMORROW.”
All of the watch lists follow a similar format. Each stock ticker is accompanied by a stock chart and a game plan for the next trading day. Stocks on these watch lists range anywhere from a few cents per-share to a few hundred dollars per-share. There is usually a nice variety of different trade setups (usually 10-20 tickers).
Nathan has a diverse trading style so it is unlikely that all of the setups on the watch list will be relevant to you. You should use these watch lists as a starting point for creating your own watch list.
Pay close attention to the game plan for each stock on the watch list. Nathan includes both short and long plays and has his own unique lingo. I’ll admit, it’s easy to get lost at first. Nathan speaks in “Trader talk” that can be difficult for new traders to understand. If you are overwhelmed at first, don’t stress out. You will get the hang of things over time.
If you have specific questions about the game plans, you can post your questions in the comment section. It can also be helpful to go back and review the watch lists. You can compare them to the chat logs, stock charts, and video lessons to better understand what Nathan’s game plan was.
Chat Room Access
Investors Underground has four different chat rooms:
- Momentum (Main) Chat Room
- Swing Trading Chat Room
- OTC/Crypto Chat Room
- Trader’s Lounge (for Q&A)
For the sake of this review, we will focus primarily on the momentum chat room. The momentum chat room is the flagship offering of Investors Underground. This is without a doubt the best active trading chat room on the internet (and I’ve been in quite a few).
The chat room is home to many skilled traders with different styles. There are traders who are fast with news, traders who specialize in penny stocks, traders who specialize in large caps, and so on. This is one of the main differentiators of the Investors Underground chat room. It is not a “follow the leader” chat room like many other guru-centric services. It is a community of experienced traders sharing their ideas in real-time. Everyone benefits from each other’s commentary and analysis.
The chat room acts almost like a stock scanner with built-in human intelligence. Traders will alert different types of moves and share their actual trade ideas.
I didn’t realize how important the chat room was to my trading until I didn’t have access to it. When I initially joined Investors Underground, I paid for a quarterly membership but did not renew immediately on expiration. There was a week or two when I didn’t have access to the chat room and I realized how essential it was to my trading. I found myself asking questions like “why is this stock moving?” “is this news legit?” and “is this setup a trap?” I ended up renewing and I’ve become a better trader for it.
Trading is a solitary activity. It’s nice to surround yourself with other experienced traders. Not only does it bring a communal vibe to trading, but it also makes you a better trader. You get access to more insights, trade ideas, and information that you otherwise wouldn’t have access to.
The Investors Underground trading chat room is one of my most valuable trading tools today. That said, new traders should be aware of the learning curve (especially if you are coming from other trading chat rooms).
There are two things you should be aware of.
First off, the chat room is no-nonsense and the moderators are strict. While this is ultimately the reason why the chat room is so beneficial, it can be frustrating for new traders. Every message is expected to add value. The chat room is not a place to start conversations or ask questions publicly. For example, if you ask, “why is $XYZ moving?” you are unlikely to get a response. These types of questions can be asked in the Trader’s Lounge or via private message. Nathan is super helpful via private message, but once again, he has a no-nonsense approach.
If you are going to reach out to Nathan or any of the other moderators, make sure you’ve done your research and show that you respect their time. For example, if you ask a question like “what is VWAP?”, you probably won’t get the best response. You could easily find an answer with a simple Google search. Likewise, if you ask a basic question like “should I buy $XYZ?” or “should I sell $XYZ?”, you are unlikely to get a constructive answer. The moderators are there to help those who help themselves. If you take a lazy approach, they have no patience. If you show dedication, you can find some amazing mentors.
You should also be aware that there is a learning curve to the chat room. Once again, traders talk a seemingly foreign language. They use a lot of acronyms, jargon, and abbreviated messaging. For example, “$XYZ nHOD” means $XYZ is setting a new high of day. “$XYZ failed follow through” means $XYZ failed to break it’s daily high and may reverse trend.
There is a chat room terminology page that can be used to navigate the messages. Don’t get frustrated if you feel overwhelmed. It takes time to learn the lingo, but it pays off.
Video Lessons and Webinars
As mentioned above, learning how to day trade takes time and the Investors Underground service can be overwhelming at first. If you are new to trading, you should definitely review the educational material.
The educational material comes in three formats: live streams, video lessons, and webinars.
Nathan does a pre-market broadcast (live stream) at the beginning of every trading day. He shares his screen and goes into detail about his trading game plan for the day. He will also use these broadcasts to narrow down his watch list. There are usually 10-20 tickers on the nightly watch list. Nathan narrows this list down to a few of the best opportunities during the pre-market broadcast. He will factor in pre-market trading activity and may add some new stocks to the watch list as well.
The video lessons are used to recap trades and recent market activity. There is a library of over 1000 video lessons and Nathan releases a few new videos each week. These videos are usually about 10-20 minutes and they are beneficial for traders of all skill levels.
The video lessons go over recent trades and provide some of the explanations that you may not have been able to get in the chat room. Nathan will break down the trades he placed for the day and explained what he did right and wrong. He will explain key takeaways that can be applied to future trades.
The video lesson library is one of the most valuable resources for members. I highly recommend you watch all of the fresh video lessons when you sign up for the service. Not only will they help you learn more about trading, but they will also help you make the most of the service. The chat room messages and the watch list game plans make a lot more sense after you’ve watched some of the video lessons.
Investors Underground also hosts a few monthly webinars. These webinars are used to talk about broader trading concepts and answer members’ questions. If you have specific questions about trading and/or recent trades, you can get in-depth answers during the webinars. Don’t be shy – ask any questions you have.
There is also a webinar library with over 500 recorded webinars. I haven’t had the patience to go back and review too many of them (I prefer the video lesson format), but they are there if you need them.
Investors Underground Pricing
We’ve covered most of the features of Investors Underground. Now, it’s time to take a look at the pricing.
You can purchase a standalone membership or a membership that comes with the trading courses (Textbook Trading and Tandem Trader). If you are new to trading, you should definitely consider the membership that includes the courses.
Pricing for the standalone membership is as follows:
- $697/quarter (three months)
Pricing for the membership and courses is as follows:
- $1,297 for one month + both courses (renews at $297/month)
- $1,697 for three months + both courses (renews at $697/quarter)
- $2,697 for twelve months + both courses (renews at $1,697/year)
As far as pricing goes, Investors Underground is priced somewhere in the middle of other services. You can also find better deals during sales (which the company runs quite frequently).
Memberships can easily be canceled from your account settings page.
Is Investors Underground Worth the Price?
Now that you know what you get and how much it costs, it’s time to answer the question, “Is Investors Underground worth it?”
The short answer is, yes.
If you want to learn how to day trade and you want to sign up for a chat room and educational service, Investors Underground is your best bet. They offer the best courses, the best chat room, the best guidance, and some of the best bang for your buck.
That said, there’s no hiding the fact that subscriptions are expensive for new traders. If you are going to invest in an IU membership, you should make sure you have the funds you need to give yourself the best shot at success.
If you only have $500-$1,000 in your trading account, you’re not going to get too much value out of the service. You won’t get value out of most services if you don’t have the capital you actually need to trade.
If you have $3,000-5,000+ to trade with (on top of the IU expenses), you will get a ton of value out of the membership and courses.
Trading education always seems expensive until you realize how much more expensive it is to learn trading lessons the hard way. If you don’t know what you are doing, you can easily lose a few hundred dollars in a single trade. For example, if you buy 1,000 shares of a stock at $4 without knowing what you are doing and the stock drops to $3.70, you just lost $200. That money would have been better spent on a month of IU where you could have learned more effective trading strategies.
As a trader, your capital is on the line every single day. By paying for education, you can avoid some of these unnecessary losses and give yourself the best shot at success.
You can also make back the membership fee with a single trade (depending on the size of your portfolio).
Is Investors Underground Right for You?
Investors Underground is a great service but it is not a match for everyone. There is no such thing as a universal trading service that is right for everyone.
Investors Underground is for serious traders who want to actively trade stocks. If you can answer, “yes” to the following questions, Investors Underground is worth checking out.
Do you have at least $3,000-$5,000 to trade with? If you want to engage in active trading, you need to have enough capital to trade with. Contrary to internet folklore, you don’t need over $25,000 to day trade. While traders with under $25,000 will be subject to the PDT Rule (i.e. limited to three round-trip trades every five days), they can still find success by focusing on placing a few high-quality trades every week.
Do you want to be an active momentum trader? Momentum trading is the process of taking advantage of significant intraday moves in the stock market and individual stocks. You will get the most value out of Investors Underground if you are interested in momentum trading. While the service offers a swing trading chat room and the occasional swing setup on the watch lists, the community is ultimately geared towards active day traders. You should be able to watch the market for at least a couple hours during the day (i.e. the first hour of trading, the last hour of trading, etc.)
Are you ready to put in the work? This may sound like a strange question to include on this list, but it’s important. If you want to make the most of an IU membership, you need to be ready to put in the work. You need to review the nightly watch lists, pay attention in chat, and go through as many of the video lessons as you can. This isn’t a service that will spoonfeed you. Don’t expect some “guru” to say “buy here” and “sell here.” Not only is that ineffective, but it’s also not how things are done at Investors Underground. If you are dedicated to putting the work needed to become a successful trader, IU is the best community you can join. If you are not ready to put in the work, you may want to reconsider trading altogether.
Investors Underground Review: Final Verdict
Investors Underground is one of the best online trading communities for active traders (if not the best). The coursework is in a class of its own, the chat room is an invaluable resource, and the community is run by experienced traders. I can highly recommend this service to anyone who wants to become a momentum trader.
If you have any additional questions, just leave a comment below.