Dangers Of Stock Tips

Relying on stock tips from other people is a sure fire way of getting yourself in trouble. It is a must for every investor to have some basic knowledge of what they are investing in.

Besides the obvious pump-and-dump scams out there many investors rely solely on tips from friends, co-workers, or the media.

Any investor should be able to, at the very least, look at a basic stock chart and understand basic moving averages. If you simply rely on others to make your stock picks for you; without understanding the reasons behind those picks you are sure to lose money.

So even though your "Cousin Joe" may mean well by giving you his opinion about a stock; you really need to learn the basics of stocks for yourself.