Who Should You Trust When You Get Advice For Investing in Stocks?
Many people these days turn to their friends, family, and even coworkers for advice investing in stocks and other investments.
Almost all the advice that people hear about for investing comes from friends and family who usually are false, because the advice they are giving came from one of their friends as well.
Think about it, most of your friends and family probably know little or nothing about investing right? The only reason why they keep giving advice is because they think they are helping when in fact they are probably only making financial situations worse for the people around them.
Many people who give investment advice are wrong but it doesn't mean that they all are wrong.
We need to know who we should and should not take advice from, in order to gain from the information that we receive.
Experience makes a huge difference when it comes to investing, and therefore if you are talking to someone who has had a lot of experience from the past then he or she might have some good advice to give.
We need ways of knowing whether or not the person we are talking to knows what he or she is talking about, and to do that we have to ask questions.
The first thing that you should do is ask questions that are obvious, such as what is market capital, or what does the price to earnings ratio mean? If the person who is giving you advice can't even answer basic investing questions, then you should not listen to what they have to say.
If you ask them basic investing questions and they can answer them, then you need to move on to more advanced questions.
If you trust the person who is giving you advice, and they understand the simple investing questions you ask, you then need to ask them things like how long have you been investing, and do you think that you have made money in the long run? If they have made money in the long run, be sure to ask them what their strategy is and if they still were able to make money when the markets were falling.
If you study a teacher carefully, you may find that they know more than you do, and that they can then be a great asset to your carrier investing in stocks.
The good news is that some of the greatest teachers are very close to us, but we just have to know where to look.
Almost all the advice that people hear about for investing comes from friends and family who usually are false, because the advice they are giving came from one of their friends as well.
Think about it, most of your friends and family probably know little or nothing about investing right? The only reason why they keep giving advice is because they think they are helping when in fact they are probably only making financial situations worse for the people around them.
Many people who give investment advice are wrong but it doesn't mean that they all are wrong.
We need to know who we should and should not take advice from, in order to gain from the information that we receive.
Experience makes a huge difference when it comes to investing, and therefore if you are talking to someone who has had a lot of experience from the past then he or she might have some good advice to give.
We need ways of knowing whether or not the person we are talking to knows what he or she is talking about, and to do that we have to ask questions.
The first thing that you should do is ask questions that are obvious, such as what is market capital, or what does the price to earnings ratio mean? If the person who is giving you advice can't even answer basic investing questions, then you should not listen to what they have to say.
If you ask them basic investing questions and they can answer them, then you need to move on to more advanced questions.
If you trust the person who is giving you advice, and they understand the simple investing questions you ask, you then need to ask them things like how long have you been investing, and do you think that you have made money in the long run? If they have made money in the long run, be sure to ask them what their strategy is and if they still were able to make money when the markets were falling.
If you study a teacher carefully, you may find that they know more than you do, and that they can then be a great asset to your carrier investing in stocks.
The good news is that some of the greatest teachers are very close to us, but we just have to know where to look.