So as I watched the conversations between traders in a popular stock forum today, I thought to myself "Is this poor new guy actually taking this guys advice?"
What you need to understand is all of those people are there to make money in one way or another. What I generally do when offered "advice" or "insight" on trading or information about a stock is take that info and go dig deeper for myself and research whatever nugget has been given to me. I'm not saying everyone on these forums is out to get you but what I am saying is MOST are really in it for their own interests.
Lets say for instance that Joe trader has shorted a stock and he needs to cover but the stock is resisting and is going up therefore costing him money. He may go into that stocks trading board and start giving "insight" that may cause traders to run scared and sell or cause a panic making the price per share plummet. If you are the inexperienced new guy you may buy his line and sell your stock at a considerable loss thinking you have made a bad play when actually all you have done is buy this guys crap.
I say double check everything people say on those boards as alot of people dont ever bet on a stock going up, they bet on it going down. The bashers out there are usually self proclaimed authorities that really are just trying to trash the stock so they can cover their short.
Do your OWN research as you are the only one responsible for YOUR OWN money .
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