10 Investment Tips for Beginners: #8. Don’t fall for “hot stock tips”.
Posted: April 16th, 2009 | Author: Joe | Filed under: 10 Investment Tips for Beginners, Investing, Tips | Tags: Investing, Stock Market, Tips | 3 Comments »Here are 2 reasons hot stock tips are always bogus:
1. If the person giving you the hot tip really knew anything, they’d be guilty of insider trading for telling you – it’s illegal!
2. If the hot tip wasn’t some secret information about a specific stock, but a “system” to get rich in stocks, then the system would stop working when more people started using it.
The way to true wealth in the stock market is hard work, either by researching, practicing and learning to become a serious investor (think Warren Buffet) or by starting your own company and eventually going public and selling shares in the stock market (think Bill Gates). Everything else is largely a scam.
If you liked this, you may also like:
Jim Cramer’s 10 commandments of stock trading.
25 Investment rules from Jim Cramer.
Cramer’s Top 5 Picks for Stocks to Buy
Cramer’s Bottom 5 Picks for Stocks to Buy
It is great. But I believe that for beginner in investment, it is important to make a study by themselves, instead of collecting the information, try to have a paper trade session before enrolling in the real trade.
[...] The Media 5 Don’t Tune Out Too Much 6 Pay Attention To Risk 7 Don’t Avoid Reality 8 Don’t Fall For Hot Stock Tips 9 Don’t Try To Time The Market 10 Try Before You [...]
[...] Don’t believe the hype: If you hear about a "hot tip," ignore it. There’s no such thing as a sure winner or inside scoop, and believing there is will just get you burned. [...]