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How To Profit From Stock Tips
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ten4one
Master |
03-Sep-2006 07:21
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Yup S'guy and thence the reason for my following remarks about Financial Houses' reports. Hope you get what I mean. Cheers! |
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billywows
Elite |
02-Sep-2006 23:13
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No la, Ten4one .... By the time a stock is upgraded by the institutions, its too late liao. That's when most retail investors jump in on the news to push the price up unrealistically. And that's also when the institutions will sell off theirs. This is also how stock 'tips' worked .... Shiok! |
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Sporeguy
Elite |
02-Sep-2006 17:41
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Hi ten4one, are you using the cantonese phrase "carp na chwee kai tiu" for frog crossing Orchard Rd? |
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ten4one
Master |
02-Sep-2006 10:42
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billywows, Have you ever witness a frog crossing Orchard Road (LOL)??? if you mean those Financial Houses' reports that reccomend 'Buys' as tips, I suggest you read the fine prints in more details. We must be able to differentiate between knowing what to do and stock tips! Cheers!!!! |
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billywows
Elite |
02-Sep-2006 01:21
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Good additions, Nostradamus! Hmm ... Ten4one, there are times we get stock tips unexpectedly even without asking... Then we should be wary, till we check it out ourselves. Anyway, we are responsible for our own money. |
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Nostradamus
Supreme |
01-Sep-2006 10:26
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1. Know the business of the company you plan to invest in. Don't buy blindly. 2. Know what are the company's plans which will drive its share price. 3. If you find the price attractive, you can proceed to buy. |
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ten4one
Master |
01-Sep-2006 08:20
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Rule No 1 never ask for Stock Tip. Rule No. 2 refer to rule No 1. Simple ...isn't it? QED and problem solved! Cheers!!!!! |
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billywows
Elite |
01-Sep-2006 06:47
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How to Profit From Stock Tips
By The infamous stock tip. It can make or break friendships, create or destroy wealth, and ruin an otherwise lovely dinner party. I mean, there's nothing more uncomfortable than being cornered by a guy with spinach dip in his teeth preaching that airline stocks are the place to be. I must admit, however, that some of my best stocks have reached me by word of mouth. So how do you tell the difference between a good tip and a bad tip? In three easy steps ... Step No. 1: Ask the tip-giver to summarize the company's business in 30 seconds. If he or she can't do that, try to change the subject as quickly as possible. "Hey, how about them [insert local sports team here]," always seems to work. Step No. 2 (assuming Step No. 1 has been satisfied): Ask them to name one catalyst for the business (e.g., increasing margins, new market opportunity). Step No. 3: Trust, but verify. If you're intrigued by what you've heard, review the company's SEC filings, determine the stock's proper valuation, and if it is less than the current market price, consider buying shares. Foolish bottom line When you get stock tips from friends, family, or even complete strangers, you need to separate the wheat from the chaff. Following the three steps I outlined above will help. Remember that most of the tips will be rubbish, but once in a while a worthy idea will cross your path. |
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