You are listening to the news on TV or the internet; they are telling you about a stock that is a good investment. They are mentioning that they are coming out with a great new product. They are predicting good investment returns. They will show you charts, which will show great stock return results. The news your reading or hearing is coming from known investment firms. Should you run to the phone or computer and place you’re order to purchase the stock? The answer to this is flat out No.
I am about to tell you something that a lot of people really do not know, but first I will tell you that you can get very good advice from these sources also. I watch the news and read about investments on the internet all the time. I watch the markets globally and I like looking for investment ideas.
Here is an example of some bad information, that they might be telling you on promoting a stock. This has happen in the past. If an investment firm, or someone affiliated with the firm, has shares invested to sell at a higher price. Or the investment firm’s client is the company that they are promoting. They will select information that is true about the company to promote, but they will not give you the whole picture. Take a chart for an example, they will show you the: weekly, monthly, or yearly charts. Whichever one looks the best to promote the stock. I want to point out that they do not do this all the time. I will say they rarely do it because they need to protect their credibility with the public. When you hear an investment opportunity that sounds good; follow through with research of the investment. Do your homework.
Here is another example that I have seen happen. Someone working for an investment firm went on the news and said that such and such a company is not a very good investment at this time. It turned out that this company was a client of the investment firm. His management fired him for saying “there client was not a good investment.” I have seen this happen a few times. These things can happen and they do happen so when you pick investments don’t be lazy, do your homework. The investment news that you receive is definitely a fantastic starting point for your future investments, Always follow through with fantastic research so if the stock down, there is no one to blame but yourself. If the stock goes up, you can smile and pat yourself on the back and say, Good job.