Good Investment Tips 2 -


Thursday, January 31, 2019

Good Investment Tips 2

Good Investment Tips

Apart from the fact that investors are always looking for opportunities, there are some folks who are specially interested in good investment tips which can be inform of stock tips. This article is to help give information on good investment tips and also give what can be considered to be good investment tips for the present year and beyond the year.

The first thing we will talk about in good investment tips or stock tips is example investment tips were peddled to average investors in years past. The stock broker calls a client (Jack) with exciting news about a cheap stock with "great prospects" and sells him 500 shares at $10 a share. The stock falls to $5 two months later and the broker calls Jack back. "If it was a good investment at $10 it's a great buy now!" he says. Jack buys 1000 more shares and the broker makes another fat commission.

At $2 the broker calls again, sells Jack 2000 more shares, and again earns a juicy commission.
If Jack gets lucky and the stock turns around, the broker has found an easy mark for any good investment tips he wants to peddle in the future. If not he made some good commissions. Stock tips that are SOLD to you as great opportunities are rarely good investment tips.

In the year 1999 when the stock market was on fire with penny stocks soaring to $50, $100 a share for new hi-tech companies with no earnings history. There were not enough good investment tips in that year. By the end of that year, all but a handful of these tech stocks were again penny stocks or worthless. These days, the new tech companies are again the rage.

Markets tend to go to extremes before they correct. Stock tips tend to proliferate at market tops. Exciting new companies (especially in hi-tech) are too often big on hype and small in the substance department. Don't let greed dominate your emotions. If you are an average investor, don't expect someone to actually give you good investment tips. The truth of the matter is that truly good tips like stock tips involve information not available to the public. That makes them illegal.
Good investment tips are usually explained and not sold. This last bull market in stocks began in early 2009, and in early 2014 it was five years old. It has been called the market that few people loved; even though it went up five years in a row. Many average investors missed out on most of this good ride because the financial crisis of 2008 scared the daylights out of them. Now, unfortunately, they are looking for good investment tips in order to play "catch up".

If as an individual you have heavily invested in stocks, you have no reason to be afraid to take profits. One of the few good investment tips that work for the long term is to keep your portfolio balanced across the asset classes. Stock market trends change, and stock tips rarely pay off in a bad stock market.

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