In the past, stock tips were often shared via brother-in-laws, in the elevator or next to the water cooler. Person “A” would share their amazing stock tip and how they have been killing it with this particular investment or that they have heard that this stock is about to take off. Person “B” would anxiously listen and then perhaps go out and have their broker buy shares in that company.
While this level of amateur advice might be laughed at by some today, many of those same people get excited when they see a stock tip on the Internet. Chat rooms, Twitter and blogs have become today’s new water cooler; and somehow, because individuals see stock tips on the Internet, they give the tip a higher level of credibility. They might have rolled their eyes at their brother-in-law; but if they stumbled across their brother-in-law’s blog, they’d promptly invest in his suggestions!
Why People are Interested in Stock Tips
Most people have very little expertise in the stock market and investments, yet most people are interested in making money. Thus, people are always looking for someone who can bridge the gap between their lack of knowledge and their desire to make more money.
Historically, the way most people addressed this gap was to hire/pay a professional to invest their money for them. Today, more and more people are becoming disillusioned with the professional investing community and are looking to make their own investment decisions.
So, many individuals begin the process of learning how to invest or trade on their own. They start by trying to find sources of information on the Internet that can guide them. As they begin searching, they are inundated with articles that do not teach them how to invest, but instead simply tell them what stocks they should invest in. The problem is that the novice investor has no experience or knowledge to process any of this information.
Worse yet, the novice investor is overwhelmed with banner ads telling them, “I have 65 straight winning picks” or “Click here to get today’s winning stock.” For a small fee, they can skip learning how to invest and simply follow someone else’s pick. After all, if they have 65 straight winning picks, how can the next pick go wrong?
Learning to Fish
In a sea of information where people are trying to give you fish, there are undoubtedly a few that can truly supply quality investment advice. The problem is for each of these individuals, there are likely 1,000 more offering only fish that stink. Without learning the principles of quality investments and trades, how can you evaluate whether somebody is giving you good advice?
At Rich Dad Education, we strive to teach students how to fish. It is crucial for our company to teach you the underlying principles, concepts and methods that go into identifying a quality trade. You are also taught what trading instruments, whether it’s stock or option strategies, can and should be used with the identified trade. Students learn how to properly execute and manage their own trades. What’s more, they can apply this knowledge long after they have left our training program.
When it comes to your desire to make more money, take the time to develop your own “fishing skills” as it can “feed you” for a lifetime.