If you are in the market for a hot Stock Market Tip you have just come to exactly the right place.
All tips come from somewhere or other.They will come from complete strangers you overheard talking in the barber shop to the experts on the television at news time.They come from everywhere.
When there is in a strong bull market in progress you can easily get a great stock tip just from throwing a dart at the list of stocks pinned on the wall from your local finance paper. and still come out with a winner.
So you found a tip that came from an article you read in the newspaper. And you have decided to invest in it. But there is one little thing you must know before you jump in. Usually by the time you have read about it, that stock has already made it’s big move and gone upwards.
The reason for that is by the time you buy the stock the smart money have started to take their profits and are selling to traders just like you.
Quite often these tips come along in the disguise of what is most commonly called a pump and dump.
I shall explain further.These tips are basically a wolf in sheep’s clothing. They are relying on the fact that you have not done any research at all, and that believe all you see and hear.So therefore you are ready to be fleeced and left out in the cold. Naked and destitute.
Here is a typical scenario,it works like this. With the smaller priced stocks it doesn’t take much cash to purchase a lot of shares. So therefore they are a lot more volatile. Then the process begins.
Firstly they will then begin to talk about, or even go so far as to writing newsletters about how good the company is just so as to get as many inexperienced traders as they can to start buying the stock. As the stock price rises due their past actions, this is time they are selling (dump) their shares.
So if you are thinking of diving into the market headfirst because of a hot tip you just found, the odds are that there is a good chance that you will lose most of your capital. Of course you will get lucky on the odd occasion, but that is all it is, dumb luck.
Now the best stock investing tip you will ever receive right here. What ever you do don’t ever buy any stock on any tip that you either hear of or see!!
Before you even contemplate buying a stock,always make sure that you have researched it properly before you buy in. That way you help to eliminate any nasty surprises that might come your way. Really there is no real reason for you to go diving into any stock straight away. There are literally thousands of stocks to invest in all of the different markets. Never go chasing a stock.
So really learning how to invest properly in stocks is really not that hard, it just takes time and effort on your part. Take the time to learn, there are numerous books that will get you headed n the right direction. Study the market and take the time to learn how to invest properly, you will not regret it I promise you. The stock market is not going anywhere fast , it’s already been around for a long time, and it will continue to be around for a long time still in the future.
Before you know it the only stock tip you will be taking note of will be the ones coming from all the knowledge that you have acquired, and these are the best tips that you can get.
Then you will find that your friends and family will be coming to you for all their stock tips.But the big difference is that your tips have been researched beforehand and are a lot more reliable that the other so called hot tips found elsewhere.
Chris Strudwick is a successful share trader on the Australian Stock Market Visit his weblogs at both http://www.asxnewbie.com AND http://www.aussie-retiree.com/ for more free articles and useful information about the stock market.
