Newcomers Entering the Stock Market
With the stock market performing so poorly this year, many people who have no experience are getting interested in learning about stocks.
They have probably heard that is good to buy stocks when they are low and sell them when they are high. With all the bad news of the stock market going down seemingly day after day, these beginners are now becoming interested in getting involved.
Finding Stock Recommendations
Once a beginner learns how to buy a stock, the next step is to try to figure out what stocks to buy. Where does one get that kind of information or opinion?
You can get stock pics almost everywhere including magazines, TV shows, radio shows, The Internet and probably many other places as well. One thing is for sure, there is no shortage of opinions.
The Role of Financial TV Analysts
If you watch the financial TV shows, you will often see segments with the top analysts or “experts” where they give their stock tips. These experts might be asked to analyze certain stocks or to give their own stock pics.
It seems to me that most of the time these so called stock market gurus are positive about most stocks. There are exeptions but rarely do you find an analyst come on and say that he would not be buying any stock and that now is not the time to invest.
These days, a lot of people don’t watch TV to get stock advice. They just go on YouTube, scroll through Instagram, or read some blog posts. It’s quick, it’s free, and there’s always someone talking about which stock to buy.
You’ll see YouTubers saying, “This stock will double soon,” or someone on Twitter calling a stock the “next big thing.” Some even post screenshots of their profits to make it look easy. And if you’re new, it’s tempting to believe them.
Good Side
Some of these videos or blogs do help. A few people actually explain things in a simple way. They show how a company works, or why a stock is going up or down. That can be useful, especially if you’re just learning.
Also, you find out news fast. Something happens in the market, and people are already talking about it online. You don’t have to wait for tomorrow’s newspaper.
Bad Side
But there’s a problem too.
A lot of people online just say things to get views or likes. Some don’t even know much about stocks. They just repeat what others say. And some only talk about a stock because they bought it cheap and want you to buy it so the price goes up.
They never tell you the full story. And if you lose money from following their advice, they don’t care. It’s your loss.
Also, everyone says something different. One guy says buy, another says sell. It gets confusing. And you don’t know who to trust.
Be Careful
So if you’re watching stock tips on YouTube or reading them on blogs, be careful. Don’t believe everything. Use your own mind. Look up the company. See what it does. Read real news. Don’t just buy something because a stranger online said so.
Positivity and Public Perception
These stock analysts are often the representatives for their company that the public sees and so they don’t want to be negative.
It is so much harder to drum up business with a negative outlook than it is if you have a positive rosy outlook.
It seems to me that these analysts are told to go out there and paint the most positive picture you can about the market.
For example, “the market might be bad right now but it will turn around and these are the stocks you want to own when it does”.
The Importance of Independent Research
Learning how to do some of your own research and not listen exclusively to the experts is perhaps the hardest part of investing.
If you are going to do things right, you do need to learn how to form your own opinions and research stocks on your own.
If you buy every stock a guru says is a winner, you will soon find that they aren’t right much more than someone who picks stocks by throwing darts.
Proceed with Caution
If you are a beginner looking to buy stocks and learn, it is wise advice to proceed slowly and not believe everything you hear.
These stock analysts are professional salesman and can make the worst stock in the world look like a screaming buy. It is your money and not theirs so be careful with it.
Conclusion
Getting into the stock market can be exciting, but it’s also easy to get lost with so many people giving advice from all directions — TV, YouTube, blogs, and social media. Some tips might be useful, but many are just noise. The truth is, no one can predict the market perfectly.
If you’re just starting out, take your time. Don’t rush to buy something just because someone said it’s a “sure thing.” Learn the basics, do your own research, and make decisions that feel right to you. At the end of the day, it’s your money — protect it and use it wisely.