Stock Market Investing Advice
Get High Quality Advice, But Make Your Own Decisions
Before you invest your first dollar in the stock market, you should decide what sources of stock market investing advice you will rely on for making your trading decisions. You can get stock investing advice from many sources, but ultimately you have to make your own trading decisions, so it is wise to consider yourself your best stock investment advisor.
Sources that you may want to investigate for stock investing advice include full service brokers, stock trading newsletters, investment clubs, online trading forums, and your brother-in-laws best friend (just joking about that one, but it is good to see you are paying attention!). Keep in mind that any stock market advice you receive from any of these sources is potentially biased.
Full service brokers have vast research capabilities at their fingertips and can often point you to investments you may not find on your own. However, remember that a full service broker makes his or her income from commissions, so there is an inherent conflict of interest between you and your broker. Your broker wants you to buy stock and lots of it. He or she makes money when you buy and again when you sell, and it doesn't matter if you won or lost on the trade.
Stock trading newsletters can be rich sources of stock market investment advice. Some newsletters (especially those with paid subscriptions) offer truly unbiased research and stock investment tips. Be cautious using free newsletters, especially ones that arrive uninvited, for making investment decisions. The hot stock investing tip that arrives unannounced in your mailbox is probably from someone who is being paid a large sum to promote the stock in question, so watch for general ideas in such letters without getting sucked into the sales pitch for the specific stock or commodity they are hawking.
You can find useful stock investing tips and stock investment advice by joining a stock investment club or an online stock investing forum. Be aware, though, that members of clubs and forums are often just as new to investing as you are and may not have any more expertise in a particular industry than you do. Sometimes you will also find that frequent posters on stock trading forums either have real difficulty being objective or have an underlying motive in making their comments.
Ultimately, you should become your own best source for stock market investment advice. Filter all of the information you get from the sources discussed above through your own set of parameters before you decide if a stock is worth investing your hard-earned capital in. Learn everything you can about markets and trading before you invest real money, and then rely on your own judgment in making your trading decisions.
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