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Stock Tip of the Day

September 28, 2017

One of the investment programs I occasionally watch provides a “stock tip of the day.” This brought up some questions.

What are the people that bought that stock “today” going to do tomorrow when the tip is for a different stock? Should they sell that stock and buy the new tip? Or hold on to it and forgo the stock touted in the more recent tip? If yesterday’s tip was still good, shouldn’t it also be today’s tip too? If the show airs 200 days a year, does it mean that there will be 200 separate tips? Does the prognosticator with the daily tip expect his viewers to actually follow his advice, or is he just acting in a reality show believing his job is to simply provide entertainment?

Moving on, almost every investment program and publication offers the “top 10 investments for the next year” at some point during the year. Some publications have multiple authors with their top 10 lists and where most stocks recommended only appear on one list. Anyone can give a stock tip with what looks like credible backup, but very few tell when to sell. I reckon that they mean to provide the tip and then let you figure out when to bail out. Further, if the tip is for a short term bump up, aren’t they are encouraging their fans to become active traders or market timers causing them serious time managing the portfolio, watching the program or continuing to read the publication while continuously maintaining an adroit hand on their keyboard?

Back to reality: Set up your long term goals, develop your investment plan to achieve those goals, make your investments creating a well-diversified portfolio and then sit on what you did with periodic reviews to assure your portfolio hasn’t deviated too much from your original plan, or that your plan or circumstances haven’t changed drastically. If you feel you need professional help for this, then get it, but stay away from the tips!

One Comment leave one →
  1. 6hawthorne permalink
    September 28, 2017 7:27 am

    Hi Ed I will give you a stock pick every other day Bob Nagler

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