If one wants to buy a new car, television, computer, or just about anything else, one might consult product reviews, people in the particular industry of the product you want, or someone you trust. Nothing wrong with this, for sure, but wouldn’t you want to test-drive the car, look at the television, check out the computer personally before you bought it? If this is true for you, would you trust the purchase of stock simply on someone else’s say-so? The following question relates to this notion precisely.
When someone recommends a buy, I check the stock with Barchart, Louis Navalier, Yahoo finance and Morningstar. If these professionals generally agree that the stock is a good buy, I buy the stock. What is your opinion of this strategy?
I understand the above “sources” are reputable, and often their recommendations are good ones, but not always. My opinion of this strategy is that it is good, but you cannot rely on it alone. You need to become familiar with both fundamental and technical analysis in order to truly feel comfortable picking a stock. I know many rely on this strategy, and maybe they do well with it, but I discovered early on that just because an agency or person is reputable, it does not mean it, he, or she is correct. Do you own work as well as seeking input from others.
Having said this, the larger question is, does this working for you? Somehow, I don’t think it is. If it were, why would you be asking me about it? If it is, though, and you are succeeding, simply disregard my advice and continue on …
Trade in the day; invest in your life …
