DON’T FALL FOR CLICKBAIT-DO PROPER RESEARCH

Companies are marketed to you constantly! They are promoted on blogs, CNBC, and various other sites online. You may not realize it, but they are being marketed to you! Even if they are not directly promoting a company, they will tout an industry and then subtly mention a few good stocks within that industry. You may have stock “gurus” shouting about how great a stock is or suggesting why a stock may do well, with phrases like “THE NEXT NETFLIX” or “IT’S LIKE BUYING AMAZON IN 1999!”

Blogs and newsletters can be very convincing about how great a company is. They may have the right picks, or they may have ulterior motives, but how will you know? You won’t, unless you do your research! Some of these blogs are malicious— as soon as you buy, they sell! This is called “Pump and Dump.” Others want to sell you things, and while some are legitimate, you won’t know until you do your research.

Novice investors often fall victim to enticing newsletters. They also come across community forums where groups of individuals hype up a stock. I’m not saying all of them are malicious; some may be very legitimate and come from a good, solid place. All I’m saying is DO YOUR RESEARCH.

Besides blogs and newsletters, social media platforms have become a breeding ground for stock hype. Influencers and self-proclaimed financial experts often share their “hot picks” with their followers, creating a buzz around certain stocks. While some of these recommendations may be genuine, others are driven by hidden agendas. It’s crucial to approach these suggestions with a healthy dose of skepticism and conduct your own due diligence before making any investment decisions.

Moreover, the rise of online trading platforms has made it easier than ever for novice investors to enter the stock market. While this accessibility is a positive development, it also means that more people are susceptible to marketing tactics and hype. It’s essential to build a strong foundation of knowledge and develop a disciplined approach to investing. By focusing on thorough research and understanding the fundamentals of the companies you’re interested in, you can make more informed decisions and avoid falling victim to the latest investment fads.