investing guide

Dangers Of Stock Tips

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.